The farmers and the sugar millers would suffer badly if the government allows import of sugar, as the sugarcane crushing season could be delayed and also the payments of the growers, the stakeholders of the industry told Pakistan Today on Tuesday while expressing their deep concerns.
Pakistan Sugar Mills Association (PSMA) has already opposed import of sugar and offered huge stocks of sugar to the government but even then the lobby of sugar importers is pushing the policymakers for importing sugar from the international market.
The government, some one week ago, hinted for importing 400,000 tonnes of sugar, which irked the stakeholders of the industry.
Farmers’ Association Pakistan (FAP), one of the major associations of growers also holds an emergent meeting to discuss the scenario after the import of sugar.
It is pertinent to mention that the current price level in international market is much higher than the locally produced sugar thus prices of sugar would go up in the local market. At the same time, this move would be a massacre of the sugarcane growers, who are expecting an attractive price for their produce. Interestingly for the first time, the millers and farmers have been united on some issue otherwise in the past both accused each other for disturbing the market.
The Punjab government has already announced procurement price of sugarcane at Rs150 per maund. The sugarcane crushing is to commence from mid November in majority of the sugar mills while some of the mills have already started crushing. If sugar is imported at this stage then not would the sugarcane crushing be delayed but also the farmers would not get the government-announced price.
FAP Director Tariq Bucha while talking to Pakistan Today said that new crop of sugarcane has arrived in many parts of the province and in some areas the crushing has started. Therefore under such a situation, importing sugar would play havoc with the growers. “The mills would stop sugarcane crushing over the pretext of huge stocks of sugar in the country thus exploiting the growers,” he said adding that the government should buy sugar stocks from the mills so that they could easily start crushing. He said that in the meeting the farmers have shown deep concerns over import of sugar and warned the government for not opting for such a decision. He said that it would be a massacre of the farmers and highly dangerous for the political government. Bucha said that the government would have to spend at least Rs350 million in case of import of sugar. “It is the powerful sugar import mafia, which is active and misguiding the policymakers,” he said adding there is no shortage of sugar in the country thus no need of sugar import. He said the government, instead of supporting its growers, is indirectly aiding foreign growers. PSMA Chairman Javed Kiyani has already offered government huge stocks of sugar and also opposed the decision of importing sugar. He was of the view that the sugar stocks are sufficient for domestic consumers till December of 2011. He also said that the country is expecting bumper crop in the coming crushing season. “The sugar production in the coming year would increase and the import of sugar would be wastage of precious foreign exchange,” he added. PSMA Former Chairman Iskander Muhammad Khan said that the landed cost of sugar is very high and it would remain more than Rs78-79 per Kg including all taxes while the price of local sugar is low.
