Over the past 12 years sugarcane growers have been on the receiving end both at hands of government and sugar mills owners. The powerful sugar millers have always exploited the growers by not paying the arrears of sugarcane sold to them in addition to paying price lower the support price and cheating them in the truckload measurement by way of deduction in the shape of binding material. In June last year, Supreme Court had passed order directing certain sugar mills’ owners to clear the piled up dues of small farmers.
Being well connected in the corridors of power in every elected government, the All Pakistan Sugar Mills Association has decided to stop crushing of sugarcane as the price of Rs.220 per 40 kilogram fixed by the government is above the support price of Rs.190 for that weight of sugarcane. The crushing season was started late last month instead of November and three months of the season still remain. The decision will inflict huge losses on the sugarcane growers as bulk of the standing crop cannot be used for making ‘Gur’ or selling it to juice shops.
It appears that sugar mills owners have closed their production units to push down the price of sugarcane, depriving the growers of economic benefits they derive from this cash crop. It is pertinent to mention that when cost-benefit ratio dropped in the cotton growing areas of South Punjab, farmers switched over to growing sugarcane.
The millers are taking multiple benefits by paying lower price to growers, showing less sugar recovery to evaded taxes, availing Rs.8 per kilogram export subsidy and selling sugar at very high price in the national market. Suchlike exploitative practices will force the farmers to decrease areas under the cultivation of sugarcane, leaving the country with no surplus stock of sugar for exports or make it even sugar importing state.
