Sugar cane support price is Rs. 180 per 40kg. For 400kg the price becomes Rs. 1800. Industrial standard says that from 400kg sugar cane, 56kg Sugar is refined. That means that each kilogram sugar costs Rs 32.14 as sugar cane cost. Industrial standard says that 15% (Rs. 4.82) is industry running cost and profit margin, bringing the sugar price at almost Rs. 37. There is also 17% Tax on sugar, bringing its price to consumer at Rs. 43.29.
But in Pakistan sugar is sold at Rs 60, while the Government of Pakistan also pays additional incentive to sugar industry, who also delay the payments and subsidiaries of farmers, taking benefit of cash flow and interest for many months, on the farmers income. The sugar industry also cheats the farmers every year by creating delays in buying sugar cane, due to which the sugar cane is left sitting in the sun for many days, losing weight by losing water content and this nets less cash for the farmer.
The sugar industry shows a lower production, keeping more than 35% sugar production as undeclared. The achieve this by declaring a low conversion percentage in Industry calculations. The sugar industry does not pay any tax on this undeclared sugar production. It has also been reported that some sugar mills have also not delivered Sugar stock on contract to the Government of Pakistan for more than a year and taken out stay orders from the courts to avoid punishment.
Keeping in view the above mentioned criminal and non-Islamic ways of the sugar industry in cheating the poor farmers, the Pakistani public and the Government of Pakistan, in declaring less production, paying less taxes, paying less and late to farmers, taking Government benefits on false production, not delivering paid for sugar stock etc, it would be logical for the Government to take strict action against the sugar mafia that is cheating the entire nation of Pakistan.
But as we have observed in the past years, that the Government of Pakistan are not willing to take action against the cheating sugar industry as most of the industry is owned by Government officials and policy makers. Therefore I would like to request the FBR, NAB, and Media houses to highlight the sugar mafia and take action against them for unpaid taxes, late payments to farmers and similar reasons. The media should also highlight the owners and policy makers of sugar industry.
ENGR. SHAHRYAR KHAN BASEER,
Peshawar, December 9.