LAHORE – The government has failed to rein in sugarcane prices as middlemen have maintained high price levels through manipulation, industry sources told Pakistan Today on Thursday.
There has also been a lack of progress with regards to the decision of federal cabinet which had linked the sugarcane support price to the sucrose recovery level. Farmers have complained that they are forced to sell their crop at relatively lower rates with sugar millers emerging as major beneficiaries and earning millions of rupees.
Sources have expressed concern that middlemen are very active with the price of sugarcane touching a level of Rs 200 per 40 kg. Apparently, some farmers are also abetting the cartel and ramping up sugarcane prices. Some government officials are also allegedly involved in the scheme. Sugarcane prices in different parts of the country are now between Rs 200 and Rs 240 per 40 kg.
Giving his perspective, Pakistan Sugar Mills Association (PSMA) former Chairman Iskander Muhammad Khan pointed out that the government announced a support price of Rs 125 per 40 Kg. However, due to a shortage of crop in the country, farmers are instead receiving more than Rs 200 per 40 kg. He stressed that under this situation, it is not possible for sugar prices to be brought down.
He fired a broadside at the middlemen who he opined are directly involved in black-marketing of sugarcane and sustaining the elevated price levels. He went on to say thar if sugarcane is made available for Rs 125 per 40 kg then a lower price for sugar is on the cards “The government should identify the middlemen involved in the crisis,” he also attempted to dispel any impression that cultivators are not receiving a fair price for their produce.
The government should implement the cabinet’s decision made last year explicitly linking the price of sugarcane to the recovery level. “The farmers are selling sugarcane from which a content of seven percent is recoverable for Rs 190-200 per 40 Kg; if the decision of the cabinet is implemented then the price of sugarcane will inevitably drop,” he said.
He attributed the current situation to mismanagement on the part of the authorities. “Linking sugarcane price with recovery is the best option for all stakeholders; is not only good for sugar millers but equally beneficial for farmers, who would receive a fair amount for the cane they produce,” he reasoned.
However, the farmers are robust in refuting the claims of the millers and are of the view that the masses are being cheated and forced to paying inflated prices. Agri Forum Chairman Ibrahim Mughal stated that given current sugarcane prices, the maximum sugar price is Rs 145 pr kg but millers are minting money while government officials including the cane commissioner and secretary food look the other way.
He flatly denied that farmers are receiving a price of Rs 200 per 40 kg. He elaborated that when sugarcane was being sold for Rs 60 per 40 kg, then price of sugar received was Rs 16 per kg opining that the maximum sugar price should be around Rs 45 per kg. He stated that almost 10 percent of sugarcane area had been harvested while a large area is being harvested. Sugar is being sold for Rs 72-78 per kg, thus the millers are garnering at least Rs 25-30 per kg of profit.
