Mills paying more than support price of sugarcane

KARACHI - The sugar mills in Sindh are buying sugarcane from the agents and the growers by paying more than the support price of the crop, sources told The Nation. The provincial government had set the support price of sugarcane at Rs81/-40kg for crushing season of current financial year 2008-09, but the sugar mills are paying Rs85 to Rs90/-40kg to growers in the province, sources said. Growers attributed the shortage of the commodity in current season behind the increase in the prices of sugarcane above the support price. It may be noted here that Sindh government traditionally notifies official support price of sugarcane higher than Punjab. The Punjab government has set Rs80/-40kg support price for this season. The sugarcane prices have increased by rupees 3 to 5 per 40kg as sugar mills were paying Rs83 to Rs86 per 40/kg of sugarcane to growers, growers said. The sugar mills were paying more price of sugarcane to middle-men as 40 per cent sugarcane is provided by these middle-men to mills in Sindh, sources said, adding that due to shortage of the commodity in current season, the mills offering more prices than minimum support price of sugarcane. Depicting the future scenario, an analyst said the prices of sugarcane are expected to reach Rs100/40kg very soon in the current season as crushing season has been started in this month. The competition of purchasing more sugarcane would increase between sugar mills which would increase the prices of the commodity, he said. Meanwhile, growers pointed out that the transportation charges also included in the price of the commodity as mills were deducting rupees 5 to 6 per 40/kg. Mostly, the transport facility to carry sugarcane from fields to mills is provided by the sugar mills while mills deduct charges on distance basis according to the formula set by the Agriculture Department of Sindh. Cane Commissioner Sindh Nazeer Jamali told The Nation that out of 31 sugar mills in the province, 26 mills have started crushing of sugarcane so far while remaining five mills are yet to start crushing. The sugar mills which did not start crushing are Dewan City, Dewan Khoski and Bawani Talhar, owned by renowned industrialist Dewan Yousaf Farooui, Kiran Sugar Mills Rohri owned by PPP leader Islam Uddin Sheikh while the owner of Lar Sugar Mill is also an industrialist. According to sources, over one billion rupees arrears of the growers of last season are yet to be paid by the sugar mills.

ePaper - Nawaiwaqt