Government refuses to press sugar mills for early crushing; Rana Tanveer points to the IMF’s limits
Rs134 billion has been earned by sugar profiteers. PHOTO: PIXABAY
RAWALPINDI:
After vegetables, the country is now bracing for a renewed sugar crisis, with open market prices rising back to Rs 200. per
According to traders, the government fixed price of Rs 181 per kg has become meaningless as no shop in Rawalpindi or the surrounding areas sells at that price. Wholesale prices have also increased, with a 50-kilo bag now costing Rs.10,000, up significantly from previous weeks.
The new hike comes amid a 25 percent hike in freight rates by freight carriers operating between Karachi, Rawalpindi and Peshawar, an increase traders say will further bolster retail prices.
Market watchers fear that this round of hikes could spiral in the coming days if the sugarcane crushing season is delayed further.
Meanwhile, the crisis also dominated the recent session of the National Assembly Standing Committee on National Food Security and Research, where Federal Minister for Food Security RanaTanveer Hussain briefed lawmakers on the situation.
“We have decided not to pressure the sugar mills to start crushing,” he told the committee, explaining that each mill would decide for itself when to start operations. “Any mill can start crushing when they see fit. Whether it’s in the first week of November or before the twentieth, it’s entirely up to them,” he added.
The minister pointed out that the price of sugarcane last year varied between Rs400 and Rs700 per maund and according to the IMF agreement, the government is not allowed to fix the procurement price of the crop.
“Punjab’s sugarcane crop will be ready by November 1,” Rana Tanveer said, noting that millers prefer late crushing to maximize recovery.
Sources told The Express Pakinomist that the federal government had earlier struck an agreement with sugar mills to start crushing in the first week of November, with the agreement signed by minister Rana Tanveer on behalf of the government.
But by deciding not to enforce this timeline, the government has effectively protected the interests of mill owners, a move critics say will again hurt farmers.
Late crushing, they warned, leaves growers with heavy losses as their standing crop loses weight and quality, and also delays the sowing of the next crop, creating a ripple effect across the entire agricultural cycle.
Traders now fear that unless the crushing season begins on time, sugar prices will continue their upward climb, fueling another wave of inflation as the masses grapple with skyrocketing food costs.
