Mills demand end to sugar smuggling to Afghanistan

LAHORE: The government should take steps to curb sugar smuggling to Afghanistan in disguise of Gur export if the government wants to control the prices of sugar in the country, mills representatives said this in a meeting of Sugar Advisory Board held on Tuesday. The price of sugar in Afghanistan is from Rs 75-80 per kg.

The price of sugar in Pakistan is Rs 45-46 per kg. The price difference gives smugglers a chance, they said. The representatives of Pakistan Sugar Mills Association, Cane Commissioners, State Bank of Pakistan (SBP) and farmers associations attended the meeting.

Federal Minister Manzoor Watto chaired the meeting. The meeting decided that a committee should be formed to link the prices of sugarcane with sucrose content. Currently, farmers get a uniform price. Introduction of prices according to sucrose level will help them in getting attractive prices. The meeting also decided to evolve a system to stop intervention of middlemen and make Cane Procurement Receipt (CPR) effective so that it could be used as cheque. Sugar mills issue CPR to farmers against their crop.

The SBP was asked to evolve this system, as it would end the influence of middlemen and help farmers in getting timely payments. The meeting also decided to import sugar after assessment of fresh crop of sugarcane, which is due in November. The prices of sugar increased in the local market due to high production cost and smuggling of sugar to Afghanistan, said sugar mills representatives.

The PSMA chairman Iskander Khan said around 50,000 tonnes of sugar was not produced in NWFP only because gur export was allowed. He said manufacturers opted for making gur instead of sugar, which resulted in less production of sugar. He said the sugar stocks in the country were 1.6 million tonnes and could meet the local needs. However, the production of gur was playing havoc with the industry, he said.

He said that there is no sales tax on gur while sugar industry was paying tax on sugar production. "We are not against the production of gur but some profiteers try to get benefit from it," Iskander Khan said, adding that the sugar smuggling in disguise of gur resulted in high prices in local market. Meanwhile, the price of sugar increased to $464 per tonne in the international market. nauman tasleem
source: dailytimes