The government refuses to push sugar mills to carry out early crushing; Rana Tanveer highlights IMF restrictions
134 billion rupees were earned by sugar profiteers. PHOTO: PIXABAY
RAWALPINDI:
After vegetables, the country is now bracing for a new sugar crisis, with open market prices rising to Rs 200 per kilogram and official rate sugar virtually disappearing from retail stores in major cities.
According to traders, the government-fixed price of Rs 181 per kg has become meaningless as no shop in Rawalpindi or surrounding areas sells at that rate. Wholesale prices have also climbed, with a 50-kilogram bag now costing 10,000 rupees, up sharply from previous weeks.
The new hike comes against the backdrop of a 25 percent increase in freight rates for goods carriers operating between Karachi, Rawalpindi and Peshawar, a hike that traders say will further worsen retail prices.
Market observers fear that this series of increases could take a turn in the coming days if the sugarcane crushing season is further delayed.
Meanwhile, the crisis also dominated the latest session of the National Assembly Standing Committee on National Food Security and Research, where Federal Minister for Food Security RanaTanveer Hussain briefed lawmakers on the situation.
“We decided not to put pressure on the sugar mills to start grinding,” he told the committee, explaining that each sugar mill would decide for itself when it would begin operations. “Any factory can start grinding whenever they see fit. Whether it is in the first week of November or before the 20th is up to them,” he added.
The minister pointed out that last year, the price of sugarcane ranged between Rs400 and Rs700 per mound and under the IMF agreement, the government is not allowed to fix the procurement price of the crop.
“Punjab’s sugarcane crop will be ready by November 1,” said Rana Tanveer, noting that mills prefer late crushing to maximize recovery.
Sources told The Express PK Press Club that the federal government had already reached an agreement with the sugar mills to begin crushing in the first week of November, with the agreement signed by Minister Rana Tanveer on behalf of the government.
However, by deciding not to meet this deadline, the government has effectively protected the interests of factory owners, a decision that critics say will once again harm farmers.
Late crushing, they warn, exposes growers to heavy losses as their standing crops lose weight and quality, and also delays sowing of the next crop, creating a ripple effect across the entire agricultural cycle.
Traders now fear that unless the crushing season begins on time, sugar prices will continue to rise, fueling a new wave of inflation just as the masses struggle with soaring food prices.
