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Rs155 instead of Rs182/40kg: Sugar mills reject to buy sugarcane at govt rates

byCustoms Today Report
19/01/2015
in Business
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ISLAMABAD: The sugarcane-crushing season has been delayed in Sindh as sugar mills have refused to buy the crop at the government’s notified price of Rs182 per 40kg and are determined to buy crop at Rs155 or less.

However according to the growers, around five mills in Ghotki and Sukkur districts are paying the official price.

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Cane growers also refused to give-in to the closure of the mills, and have held rallies and protests across the province. Amidst the pressure, millers are issuing indents to cane producers, and cane trolleys can be seen on roads moving towards different mills.

Cane was sown on 700,000 acres of farmland in the province this season. Most small- and medium-sized growers are now hard-pressed to sell their crop at throwaway prices, ranging between Rs130-150 per 40kg, on average. And they cannot afford to keep the crop intact in the fields.

Cane-crushing usually continues till February-March, and around 60pc of the crop is normally crushed by January if things move smoothly. But estimates show that only 15-20pc of the total crop has been harvested for crushing so far. Farmers fear the crushing season will be dragged to April, or even May. Meanwhile, the federal government has permitted the export of 650,000 tonnes of sugar, with a subsidy of Rs10 per kg.

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