Pakistan Sugar Mills Association Punjab has asked the Punjab government to take immediate steps to restrict influx of sugar from Sindh to Punjab because the mills of Sindh are purchasing sugarcane at Rs 155 per 40 kg by virtue of a court injunction whereas sugarcane rate for Punjab sugar mills is Rs 180 per 40 kg.

“Sind mills have an inherent advantage in terms of their cost of production while Punjab mills are apprehensive that sugar will be dumped in Punjab rendering them incapacitated to make payments to growers. This influx of sugar from Sind is likely to further depress already low sugar rates and saturate the market leaving no space for them to make sales.”

A spokesman of Pakistan Sugar Mills Association requested the Chief Secretary Punjab that till such time the rate of sugarcane is uniform in the country the movement of sugar from Sind to Punjab should be restricted.

“We urge the government to exercise control and vigilance to save sugar mills in Punjab. Spokesman further lamented that due to incoherent policies of the government industry is facing a serious situation in view of surplus sugar which has eroded the financial viability rendering us uncompetitive.

Sugar industry requests a support in line with international price of sugar for disposal of surplus.”