Annual general meeting of Pakistan Sugar Mills Association Punjab Zone was held on Tuesday under the chairmanship of Javed Kayani, chairman of the Association). The issue of non-payment to growers and subsequent action of Punjab government to seal the mills was discussed at length. Punjab mills due to sugarcane price disparity of Rs 22/40 kg could not clear the outstanding of growers and ended up with serious financial deficit.

Javed Kayani urged the government to ensure that uniform rate of sugarcane is fixed in Sindh, Punjab and KPK so that sugar mills are able to start forthcoming crushing season without the price controversy. Chairman Javed Kayani informed the house that a letter has been sent to federal government in view of expected surplus production of sugar to allow export of one million tons of sugar before the start of next crushing season so that timely sale of surplus sugar could enable millers to clear payments to sugarcane growers.

He said he has brought to the attention of govt towards unpaid freight subsidy on export of sugar by TDAP which is outstanding for the last three years. Further, a portion of subsidy on export of sugar during the year 2015 is yet to be paid by government. He urged the government to take immediate measures to ensure that this subsidy is paid to mills immediately to save the mills from financial crisis and to avoid closure of the sugar industry in the interest of sugarcane growers.