New policy needed to resolve sugar industry crisis

ISLAMABAD: Members of the Senate’s Standing Committee on Commerce warned the trade managers of the country to prepare afresh sugar policy aiming at saving foreign exchange through reduced imports, purchasing from local industry and benefiting consumers.

Incase the government does not come up to rescue the local industry and it would be difficult for the industry to pay Rs.35 billion to cane growers, servicing and repayment of bank loans.

The issue was also discussed at the senate standing committee of commerce, where Senator Haroon Khan said that the Trading Corporation of Pakistan (TCP) has to mix its purchase between the local producers and the imports. Senator Haroon Akhtar Khan said, “Instead of importing 1.2 million tonnes the TCP should procure some quantity of sugar from the mills too”. Adding further he said that if the mills were unable to pay their dues to the growers then the whole agriculture sector and even the mills would suffer serious financial setback. “Country needs a seasonal based sugar policy to ensure that the rights of all concerned which are consumers, growers, sugar mills and the traders,” he said.

The Secretary Commerce and Chairman Trading Corporation of Pakistan, Saeed Khan, informed the committee that sugar prices have reached up to $500 per tonnes and the TCP was importing 1.2 million tonnes as per the directives of the ECC.

However, Chairman TCP Saeed Khan said that sugar prices are likely to decline gradually in coming months too but the corporation would only act as per the directives of the government.

The Pakistan Sugar Mills Association (PSMA) has said that if mills price of sugar drops below Rs65 per kilogram the local sugar industry and the growers would collapse financially. The letter written to the commerce ministry has said that a decision was needed to prevent regular ups and downs in the sugar industry. The letter said that ex-mill price of sugar has to be between Rs 65 and Rs 70 per kilogram in the country as the cost of sugar production was too high this year. “Cane prices even touched Rs 210 for 40 kilogrammes during pervious months and the industry has to pay Rs 35 billion to the growers and repay bank loans,” the letter said.

source: dailytimes