Market manipulation: Sugarcane growers complain about prices set by govt
The chief minister earlier approved a summary setting the price at Rs160 per 40kg.
The chief minister earlier approved a summary setting the price at Rs160 per 40kg. PHOTO: FILE
PESHAWAR:
Sugarcane growers have rejected the price of the sugarcane crop, terming it too low and equivalent to that of two years earlier, despite several increases in the cost of production.
Following the Sugarcane Control Board’s meeting, a summary was sent to the chief minister, who approved it, setting the price at Rs160 per 40 kilogrammes. The sugar mill association, however, unilaterally decided to offer growers Rs170 by increasing the price by Rs10.
Growers are arguing that since the cost of production is much higher, they would prefer making fodder from their cane crop, especially since the price of gurh (jaggery) has decreased.
“The cattle market is purchasing sugarcane at a much better price compared to the price fixed by the government,” said Sher Zaman, a grower from Nowshera. This is the only way cane growers can get some relief for their year-long endeavour, he added.
Dozens of vehicles are unloaded daily at Kala Mandi due to high consumption of sugarcane to feed livestock, shared Zaman. Though there are other markets, they are not enough, considering the excess supply of sugarcane. “If there was enough demand at the cattle markets, we would not need to supply the sugar mills or make gurh out of it.”
During the meeting of the sugarcane board – the body tasked with setting the price each year – mill owners voiced reservations on increasing the price, but offered a slightly higher rate to attract growers, said Kisan Board Provincial Secretary Abdul Akbar Khan.
Akbar claimed sugar mill owners were taking back the Rs10 unilateral increment “due to the decrease in sugar prices,” adding many growers were still not ready to sell their crop to mill owners as it would not cover their losses.
“During the board meeting, growers from Charsadda, Peshawar, Mardan and DI Khan boycotted the price fixed,” said Arbab Abdul Jamil, a sugarcane board member. “But despite this, a summary was prepared and forwarded to the chief minister, who approved it.”
Representatives of sugarcane growers complained they had not been taken into confidence “even as the Sugarcane Control Board was being formed.” They alleged they had not been consulted over the nomination of the representatives.
Jamil explained excess supply of gurh has pushed prices down from Rs10,000 per 40kg to Rs8,000 because “gurh is being produced in large quantities in the area.” Growers have asked the government to lift the restriction on the movement of the product, he added.
“There is a huge market for gurh in Afghanistan, Central Asian and Gulf countries,” claimed Jamil. “But we have been restricted only to the local markets.”
Published in The Express Tribune, December 14th, 2013.
Sugarcane growers have rejected the price of the sugarcane crop, terming it too low and equivalent to that of two years earlier, despite several increases in the cost of production.
Following the Sugarcane Control Board’s meeting, a summary was sent to the chief minister, who approved it, setting the price at Rs160 per 40 kilogrammes. The sugar mill association, however, unilaterally decided to offer growers Rs170 by increasing the price by Rs10.
Growers are arguing that since the cost of production is much higher, they would prefer making fodder from their cane crop, especially since the price of gurh (jaggery) has decreased.
“The cattle market is purchasing sugarcane at a much better price compared to the price fixed by the government,” said Sher Zaman, a grower from Nowshera. This is the only way cane growers can get some relief for their year-long endeavour, he added.
Dozens of vehicles are unloaded daily at Kala Mandi due to high consumption of sugarcane to feed livestock, shared Zaman. Though there are other markets, they are not enough, considering the excess supply of sugarcane. “If there was enough demand at the cattle markets, we would not need to supply the sugar mills or make gurh out of it.”
During the meeting of the sugarcane board – the body tasked with setting the price each year – mill owners voiced reservations on increasing the price, but offered a slightly higher rate to attract growers, said Kisan Board Provincial Secretary Abdul Akbar Khan.
Akbar claimed sugar mill owners were taking back the Rs10 unilateral increment “due to the decrease in sugar prices,” adding many growers were still not ready to sell their crop to mill owners as it would not cover their losses.
“During the board meeting, growers from Charsadda, Peshawar, Mardan and DI Khan boycotted the price fixed,” said Arbab Abdul Jamil, a sugarcane board member. “But despite this, a summary was prepared and forwarded to the chief minister, who approved it.”
Representatives of sugarcane growers complained they had not been taken into confidence “even as the Sugarcane Control Board was being formed.” They alleged they had not been consulted over the nomination of the representatives.
Jamil explained excess supply of gurh has pushed prices down from Rs10,000 per 40kg to Rs8,000 because “gurh is being produced in large quantities in the area.” Growers have asked the government to lift the restriction on the movement of the product, he added.
“There is a huge market for gurh in Afghanistan, Central Asian and Gulf countries,” claimed Jamil. “But we have been restricted only to the local markets.”
Published in The Express Tribune, December 14th, 2013.