Lahore: A delegation of Pakistan Sugar Mills Association (PSMA) has recently held a positive meeting with Punjab Chief Secretary.
During the meeting, the two sides agreed to move forward with mutual cooperation. It was also agreed that the government will look into the problems of the sugar industry and won’t take any decision which will eventually bring harm to consumers.
In a statement, a PSMA spokesman said that during the meeting, the sugar industry delegation briefed the chief secretary that sugar mills are getting sugarcane on higher rates. Sugar mills are purchasing the sugarcane at the rate of Rs.260-280 per 40 kilogramme which is much higher than the government fixed price of Rs.225. He said in those areas where middle-men have become active, the price of sugarcane has crossed Rs.300. In this scenario and according to the current price of sugarcane, the cost of production of sugar has reached approximately Rs.95 per kilogramme.
Media had also reported that it was also decided during the meeting that the ex-mill rates of sugar should not exceed Rs.90 per kilogramme. The spokesman added that the sugar industry delegation had held separate meetings with federal and provincial governments. During those meetings, the two sides agreed that the federal government will not fix the price of sugar instead let it to be decided on demand and supply mechanism. But if sugarcane will become expensive then it will ultimately increase the cost of production of sugar.
The government institutions should talk on sugar keeping in view of all facts, production expenditures and other concerned matters.
He went on to say that sugarcane, sugar mills and other information, which should be legally given to Punjab Cane Commissioner, have regularly been given to the cane commissioner on daily basis.
