Pakistan government warns sugar mills against delays in crushing season, threatens export licence cancellation

Islamabad: Federal Minister for Industries and Production Rana Tanveer Hussain has issued a stern warning to sugar mills, stating that any delay in starting the sugarcane crushing season will result in the cancellation of their export licences.

“We will not tolerate any negligence in starting timely sugarcane crushing,” the minister declared during a meeting of the Sugar Advisory Board (SAB) on Saturday.

The minister stressed the importance of protecting farmers from exploitation and ensuring they receive fair payment for their produce. “Sugar mill owners are bound to pay farmers a fair price for their produce, and any failure to do so will have serious consequences,” he said, directing provincial cane commissioners to submit reports on ongoing crushing activities.

During the meeting, the SAB reviewed the country’s sugar stock and expressed satisfaction with current reserves. The minister described the timely start of the crushing season as a “significant achievement” that would help stabilize sugar supplies and market prices.

Concerns were raised over complaints from farmers regarding low sugarcane prices. In response, the minister instructed the sugar commissioner to prepare a detailed report for the next SAB meeting. “We cannot allow farmers to suffer due to unfair pricing practices,” he added.

The Pakistan Sugar Mills Association (PSMA) informed the board that 1.7 million tons of surplus sugar was available this year and urged the government to expedite export permissions. The minister emphasized the need to meet export commitments within the three-month deadline set on October 8, 2024, while also ensuring that local sugar prices remain stable.

The PSMA also reported that total sugar production for the 2023-24 crushing season reached 6.843 million tons. The association highlighted a rise in sugarcane prices, which increased from Rs350 per 40kg last year to Rs450 per 40kg this season. “Despite having the lowest sugar retail prices globally, production costs have increased significantly,” a PSMA official stated.

The meeting concluded with the minister reaffirming the government’s commitment to safeguarding farmers’ rights and stabilizing the sugar industry. “We will ensure that every stakeholder adheres to their responsibilities for the benefit of farmers and consumers alike,” he said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here