Crushing won’t start until export allowed: PSMA

LAHORE: The Pakistan Sugar Mills Association (PSMA) has warned the government that the sugarcane crushing season will not start until the export of one million tonnes of sugar is allowed.

This was stated by Asim Ghani Usman, Central Chairman of PSMA, along with Zaka Ashraf, Chairman of PSMA Punjab Chapter, and other officials at a press conference here on Friday.

Ghani said it was necessary to start the crushing season by November 30, but sugar mills already had surplus stocks from the last season, amounting to more than one million tonnes, which was enough to meet the national sugar requirements till January 15. “If we are not allowed to export 10 lakh tons of sugar, we don’t have a storage capacity and thus the crushing of new cane is not possible.”

Criticising the federal Ministry of Food Security, the PSMA chairman observed that if Food Security Minister Tariq Bashir Cheema did not have the sugar stock data, it was incompetence of his ministry and he should take responsibility and tender resignation.

Stressing that millers had no undue insistence and their stance was based on reality, he underlined the need to increase the sugar price, saying that the cost of production had gone up. “We have not set up sugar mills for charity, rather we are doing business. Without exporting sugar, we will not be able to run sugar mills. Exports are needed as Pakistan can earn a billion dollars from the sugar export due to favourable price in the international market,” he opined and said if the government wanted to sell sugar at cheap rates, the sales tax on sugar should be abolished.

The dollar, flour, pulses had all become expensive, but sugar was being sold at the old rate. The international price of sugar stood at Rs170 per kg. “We stand with farmers. If export is allowed, no section will be affected. If export is not allowed, there is no need to hold negotiations with the government.”

Zaka Ashraf said if one million tonnes of sugar was exported, everyone would benefit, the government should immediately pay attention to the situation. If this situation continued, the sugar industry might go bankrupt. If the industry suffers, farmers would also be affected. In this situation, it had become impossible to run the sugar industry.

Other PSMA office-bearers said the government’s response to key issues related to the sugar industry was incomprehensible as sugarcane crushing was being delayed. They questioned if the farmers should not plant wheat this year. They maintained that it was illogical on the part of the government to not allow sugar export. They demanded that the government decide availability of sugar for export on the basis of data prepared by the FBR.