LAHORE: The Pakistan Sugar Mills Association (PSMA) has expressed the fear that if the crushing season starts without export of the surplus sugar stocked in warehouses, the sugar mills would unable to hold new stock.
“The sugar mills possess ample stock of surplus sugar in warehouses without its export, they will be unable to hold new stock.”
The Pakistan Sugar Mills Association (PSMA) representatives shared the observation during a recently held meeting with the high-ups of the Punjab Agriculture and Food Departments regarding start of 2022-23 crushing season. The meeting participants included representatives from the government, growers and the sugar industry. The participants were informed about the sugar recovery which stands at 4 to 6.5 percent in the current month of October.
The spokesman for the PSMA, in a statement, informed that the general body members of the association apprised the government representatives of their issues during the meeting. He said the meeting was informed that the sugar mills should be allowed to export surplus sugar to create space for holding new stock.
He pointed out that the sugar mills were already selling the commodity at the loss of billions of rupees because, saying cost of sugar made during 2021-22 crushing season was approximate equal to Rs90 per kg while the market rate stands at Rs78-80. In this situation, how can the new crushing season will start, he questioned. The meeting was informed that the banks have increased markup rate on 10 percent debt on the current sugar stocks to 15 percent, which is adding to financial loss to the sugar mills.
The spokesman demanded that the required finance, which State Bank normally offers to exporters, should also be given to all sugar exporters. He said the government should fix credit, which the sugar exporting mills normally gets and also give the rate of sugar export.
He went on to say that the disasters induced by climate change are a global issue and the government should change its policies pertaining to this new problem to overcome future challenges. The government should make prudent decisions in the country’s interest otherwise it will be detrimental to Pakistan and its industry.
“The sugar industry has appealed to the government to take stock of the situation and forthwith open the exports of sugar in order to save the growers and the sugar industry from any crisis,” he added.