ISLAMABAD: While deploring arrests of the mill owners in Punjab, Pakistan Sugar Mills Association (PSMA) Khyber Pukhtunkhaw (KPK) chairman, Iskander M Khan, has demanded of the government to put an immediate end to punitive action launched by the Punjab governmemt against the sugar industry. He also called upon the government to stop uncalled arrests of the sugar mill owners and their senior management and release those who have been arrested in Punjab. Iskander M Khan, has cautioned the government that it’s policy of ” Harassment to the sugar industrialists will further widen gulf of mistrust between the authorities and the sugar industry, which will not be in the interest of any of the stakeholers of the sugar sector”.
In recent weeks, Punjab government had lauched a crackdown against the sugar mills and arrested a number of mill owners on different charges. The arrests of the sugar millers have sent a wave of shock to the industrialists community of Pakistan . The punitive action of Punjab government has come at a time when the government is facing sugar crisis . This action of the Punjab government may be counterproductive as it will make difficult for the millers to arrange financing for procurement of sugarcane from the growers to start upcoming crushing season.
The sugar industry is facing multiple punitive actions of different departmens like Competition Commission of Pakistan (CCP), Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA).
PSMA KPK noted in its handout issued on October 22, 2021 that the Punjab government is using dufferent pressure tactics to ” Harass the sugar industry and force it to start a pre-mature crushing season like the last year. Last year, the Punjab government had forced the industry to start pre-mature crushing season that resulted in less production of 0.2 million ton sugar in eary two weeks of crushing season. It lowered total production of sugar by around 0.2 million ton and it added the government dependency on import of sugar to meet local demand.
The Punjab government is inclined to repeat the same debacle this year by forcing the industry to start pre-mature crushing season and, if it happens, it will bring the same reault i e loss of 0.2 million tons of sugar and waste of hard earned $ 140 million foreign exhange on import of sugar.
Sikander M Khan forcefully argues for start of crushing season at the right time . He argues in time start of crushing season will benefit the growers as their crop will be mature and bring them good dividend i e better price and at the same time it will benefit to the millers who will get good sucrose level and produce more sugar. At the end , he claims, extra production due to in time crushing may be 0.2 million ton to 0.3 million ton will reduce dependency on import and save roughly $150 million even more of this financially struggling country.
Its high time the concerned authorities should take a wise decision to create a win-win situation for all stakeholders of sugar sector. There is also absolutely no sense in arresting the mill owners . The punitive actions against the mill owners will not help the government reduce sugar price for the end consumers.
