Sindh intends to set sugarcane support price at Rs82 per 40kg

KARACHI - The Sindh government on Saturday held a consultative meeting with the representatives of growers to set minimum support price of sugarcane for current crushing season of FY2008-09.

The Provincial Secretary of Agriculture Department of Sindh chaired the meeting, which was attended by the office-bearers of the various organizations of growers. The other major stakeholder of the sugar industry PSMA representatives were not invited in the meeting as agriculture department officials confirmed that a separate consultative meeting would be arranged with the representatives of sugar industry very soon.

According to sources, the growers' representatives unanimously presented their point of view regarding sugarcane price, period of crushing season and arrears of growers of last season which yet to be paid by the sugar mills.

The growers pointed out that the Punjab government increased the sugarcane prices by 33.33 percent from Rs60-40 kg to Rs80-40 kg for this season so Sindh government should increase the support prices from Rs63-40kg to Rs84-40kg as traditionally Sindh's crop has rupees 3-4 more than Punjab.  

The growers said government should emphasized that crushing season should start according to Sindh Sugarcane Act. The late crushing of crop will lead to late sowing of wheat and other crops, growers argued.

The growers' representatives contradicted with the statistics of govt regarding arrears remaining to sugar mills and said that out of 28, only 4 sugar mills namely Ghotki, Matiari, Al-Habib and Al-Mehran sugar mills have cleared dues to growers.

Rejecting the official statistics of Rs87 million arrears which still paid to growers by sugar mills, the growers said at least Rs1.75 billion dues of last season yet to be paid by mills.

After listening the growers' points of view, the provincial Secretary of Agriculture Department Sabhago Khan Jatoi said that the support price of sugarcane is rupees 2-3 more in Sindh than Punjab.

The support price of sugarcane in Sindh will likely to be set at Rs82/40, he informed the meeting and added that the final decision will be taken after taking into confidence to Sugar mills representatives because they are the major stakeholders of the industry.

The government will hold a consultative meeting with the representatives of Pakistan Sugar Mills Association Sindh on Monday, sources said.

Meanwhile, the provincial agriculture department will call a joint meeting of growers and sugar mills representatives scheduled to be held in next week in which final decision will be taken for support price of sugarcane for this crushing season, official concluded.