KARACHI (March 05 2004): The sugar mill-owners, who are responsible for non-payment of the growers' dues, have been summoned to Islamabad by Minister for Industries and Production Liaquat Ali Jatoi to discuss the issue, which has now created a serious situation, particularly in Sindh.

The meeting is expected on Friday. The outstanding dues relate to the non-payment of quality premium and the price of sugarcane purchased by the mill-owners.

It is reported that growers are asking for payment while many mills are reluctant to pay due to what they call the paucity of funds. Protests are continuing all over the province for the last about six months.

Meanwhile, a meeting of Sindh Abadgar Board, in its meeting held on Wednesday, decided to take up the matter to the Supreme Court on behalf of the affected growers. Some parties have gone to various courts in individual capacity.

The prices of sugar at the ex-factory level are ranging between Rs 15 and 16 per kg. The mill-owners are suffering heavy losses due to record fall in the prices.

It may be mentioned here that sugar of many qualities has been unloaded in the local market. The low-quality sugar is available at Rs 18 per kg. There is also a special quality, which is selling at Rs 25 per kg. These qualities are available in department stores. At small retail shops the price is ranging between Rs 18 and 20 per kg.

Our Islamabad Bureau adds: Minister for Industries and Production Liaquat Ali Jatoi will lead the government team during the meeting. Industries Secretary Javed Ashraf Hussain, Commerce Secretary Kemal Afsar, Finance Secretary Naved Ahsen and Food Secretary Salik Nazir will assist the minister.

Pakistan Sugar Mills Association Chairman Iskandar A. Khan would head the PSMA delegation. PSMA Punjab Zone Chairman Javed Kayani and Sindh Zone Chairman Shunaid Qureshi and PSMA Secretary General K.A. Qazalbash would accompany him.

The list of the participants included Trading Corporation of Pakistan (TCP) Chairman Syed Masood Alam Rizvi, a representative of Farmers Associates of Pakistan (FAP), all the four provincial Food and Agriculture secretaries, Kissan Board president and Sindh Abadgar Board president.

Though payment to the growers, crushing of sugarcane and sugar production and procurement by the TCP is on the agenda but the real topic would be of surplus stocks.

The PSMA delegation would press for its demand of export of surplus stocks, which as per its estimates, is now gone all-time high. A PSMA fortnightly report indicated that as on February 29, the mills had produced 2.374 million tons sugar and out of it 1.656 million tons was available in their stock.

The mill-owners have been continuously demanding of the government export of surplus stocks to keep the ball rolling.

The PSMA is concerned over the mounting unsold stocks. Its representatives argue that immediate export of at least 500,000 tons was the only way out to steer the sugar sector stakeholders out of current crisis.

Qazalbash has strong views to justify that export of surplus commodity was the only option left with the government to help save the industry. He argued that sugar sector's stakeholders were linked to each other like a chain.

Qazalbash said, "The question of payment to the farmers becomes irrational in a situation when mill-owners were holding with them highest ever stocks of two million tons".

Courtesy Business Recorder