Sindh govt proposes Rs83 and Punjab suggests Rs80 per 40 kg

KARACHI - The Sindh and Punjab governments are mulling to fix the sugarcane support price around Rs83 and Rs80-per 40 kg respectively for upcoming crushing season, The Nation learnt on Wednesday. Though, it was pure provincial subject but official sources disclosed that the Agriculture Departments of Punjab and Sindh sent their proposals to the Ministry of Food, Agriculture and Livestock regarding and suggesting the sugarcane price at Rs83-40kg in Sindh and Rs80-in Punjab for upcoming crushing season which to be started from September 2008. An official of Agriculture Price Institute of Minfal while talking to The Nation from Islamabad confirmed that prior fixing the support price of sugarcane, the provincial governments always discussed the matter with the ministry of federal government. Though, the final notification would be issued by the provincial governments but they were in constant contact with Islamabad, he said, adding that the final notification of support price of the commodity would be issued with the consultation of relevant stakeholder of sugar industry. Keeping in view the less planting of sugarcane the growers as they moved to other crops, the provincial governments in their suggestions argued that the handsome support price of the commodity can attract the growers for more plantation of the sugarcane. In last year, the government had fixed Rs67 per 40kg sugarcane procurement price for Sindh and Rs60-40 kg but in both the provinces, the sugar mill owners were refused to purchase the crop on officially fixed price. Later with the mutually understanding of growers and mills owners, the provincial government had re-fixed the sugarcane price of Rs 63 per 40 kg.    The mill owners dishonoured the commitment, which was made by them in a meeting chaired by then Sindh chief Minister Dr. Arbab Ghulam Rahim. Last year mills even refused to purchase sugarcane at the price of Rs63 per 40 kg and offered a much lower rate of Rs55- per 40 kg. Meanwhile, Abdul Majeed Nizamani president Sindh Abadgar Board while talking to the Nation appreciated the move of provincial governments and said Rs83-per 40 kg was suitable support price for Sindh province while growers will also move for more harvesting of sugarcane crop. It was a tradition that Sindh's sugarcane support price is always rupees 3 more than Punjab because the Sindh's sugarcane posses more sucrose than Punjab. He remarked that in result of less support price, the role of middlemen in the sale and purchase of sugarcane is emerged as the sugar mills are hired the services of contractors to provide sugarcane at lower rates by exploiting the farmers. While a representative of Pakistan Sugar Mills Association told The Nation that they will not accept the proposed support price of the sugarcane for upcoming crushing season as sugar industry has already suffered billion of rupees losses in current season due to higher support price of sugarcane and less prices of its output. He claimed that never in Pakistan has there been province-based different set of support prices of wheat, rice, cotton and other agri output. It's an irony that price variation has been pursued exceptionally in case of sugarcane, he said and suggested that support price of sugarcane should not be over Rs61-40 kg in Sindh for next season.

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