LAHORE: The Punjab government has been urged to financially support the sugar millers for payment to growers and give the industry subsidy.
Pakistan Sugar Mills Association (PSMA) Punjab Chairman Javed Kayani, during a press conference, has asked the provincial government to help the mills for payment to cane growers, as the industry cannot make full payment due to liquidity crunch.
The PSMA Punjab chairman said that Sindh millers are dumping their cheaper sweetener in the Punjab market causing losses to its industry. However, the sugar mills have so for paid Rs95 billion to cane growers out of Rs110 billion.
Kyani said that sugar mills in Punjab were forced to pay Rs22.5bn more to sugarcane growers as compared to mills in Sindh.
He said that Sindh’s sugar mills were paying Rs160 per 40kgs to growers in the light of Sindh High Court’s ruling while Punjab mills were being forced to pay Rs180 per 40kg at Punjab government’s rate.
Kyani said that Punjab mills were facing difficulties in making payments to growers because of the additional financial burden, adding the Sindh government was also giving Rs12 per 40kgs subsidy to growers.
The chairman said that the Sindh government had determined the sugarcane price in the light of sugar price in mark. He urged the Punjab government to follow the suit.
Kyani reiterated his earlier demand of exempting sugar mills from road cess on the pattern of Sindh and interest free loans to sugar mills.
The PSMA also demanded that the Trade Development Authority of Pakistan must release Rs2.6bn rebate stuck for the last two-and-half years on sugar export.
