LAHORE; With the Punjab industrial cost hike by at least Rs22.5 billion, the Punjab government’s unilateral fixation of sugarcane price at Rs180 per 40kg created a purchase price difference of Rs22 per 40kg across the country.
The Sindh mills have been dumping over 100,000 tones of sugar in Punjab as the sugar production cost in Sindh is lower than Punjab, distorting the sales of local producers.
The total sugar consumption in the country is approximately 390,000 metric tones, out of which 225,000 metric tones is supplied by Punjab and 100,000 metric tons by Sindh. The sugar industry representatives have recently held a meeting with the Punjab Cabinet Committee, making it clear that mills are unable to pay the farmers further due to additional cost of Rs22.5 billion. Additional cost of Punjab millers have also rendered them uncompetitive within the country against the Sindh sugar industry, which is also enjoying provincial government support besides getting exemption of road cess, sources said.
