Sugar-cane is one of the major crops in Pakistan the nation can boast of but this segment of the agriculture sector has been marred by confusions and conflicts for the last many years. Sometime, sugar is produced in excess and on the occasion the government has to import this commodity from abroad to stabilize its prices in the local market. A tussle between sugar-cane growers and sugar mills owners on the prices of this crop and method of payment gives a classic example of myopic approach of the stakeholders involved in this business. The federal and the provincial governments have also their share of reservations and limitations on the prices of sugar-cane and sugar. Now the federal government is considering taking all the provinces into confidence to deregulate sugarcane prices. The Economic Coordination Committee has also taken up a proposal in a meeting to deregulate prices of sugarcane for the next season to eliminate subsidy on sugar export and minimize the government involvement in the matter. Prime Minister Nawaz Sharif has already formed an inter-ministerial committee headed by the commerce minister to address the issue.
Earlier, the Pakistan Sugar Mills Association, in a meeting with government representatives, highlighted the problems faced by the sugar mill owners and farmers, including disparities in sugarcane prices in various provinces. In Punjab and Khyber-Pakhtunkhwa, sugarcane prices were set at Rs180 per 40 kg while in Sindh, the prices were fixed at Rs172 per 40 kg. But the sugarcane prices fixed by the provincial governments are higher than the prices suggested by the Agriculture Policy Institute, leading to higher sugarcane produce and higher cost of production. The ECC had allowed the export of 650,000 tons sugar at Rs10 per kg in cash support, but only 542,076 tons could be exported. The situation could not be improved until the government breaks the network of monopoly prevailing in this sector.
According to a report of the Ministry of Industries and Production, the country will produce 5.13 million tons sugar in the 2016 against estimated consumption of 4.8 million tons. After adding 300,000 tons of sugar left from the 2015 season, a surplus of around 630,000 tons will be available for export in the new season. It is a test case for the policymakers to exploit the trade of sweet commodity in the best interest of the country. The petty issues facing the sugar-cane growers and sugar mill owners have to be resolved amicably while the prices of the commodity should also be rationalized for its export and consumption at home.
