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Another sugar crisis looming : Farmers refuse to sell sugarcane on credit or CPR

By Nauman Tasleem

LAHORE: Another sugar crisis is looming around the corner for the next season, as the farmers are not ready to sell sugarcane to the mills on credit and are demanding cash payments, the stakeholders of the industry told Daily Times on Tuesday.

They said there are multiple reasons for not selling sugarcane to the millers including less sugarcane production and the prevailing sugar crisis.

The farmers are not ready to sell sugarcane on credit or on Cane Purchase Receipt (CPR) due to high demand. The farmers are offering Rs 100 per 40 kg for sugarcane and said they would only give their crop at cash. “We would not accept any credit or CPR, as in the last years we were looted by the middlemen and millers but now it is our turn,” said Rana Asif, a sugarcane grower from Toba Tek Singh. He said in the previous years, the middlemen exploited the farmers and did not pay them the agreed amount. “The growers were exploited in 2007 and 2008 due to surplus stocks of sugarcane but now there is less sugarcane production and the tide has turned in our favour,” he added. “In this season we will give the millers a taste of their own medicine,” another farmer pointing at the exploitation of the millers said.

Last year, there were 50 million tonnes of sugarcane production. The target for this year was set at 57 million tonnes, however, the production dropped to 48 million tonnes thus creating a shortfall of nine million tonnes.

The water shortage, delayed payments of sugarcane to the farmers by the mills, frost attack and less availability of fertilisers was other reasons for low production.

At the same time, the sugar millers have not ignited their boilers owing to sugarcane unavailability. Reportedly, only less than six mills out of 45 have started their boilers and still there is no availability of sugarcane.

AgriForum Pakistan Chairman, Ibrahim Mughal, said the farmers would not sell their crop on credit, as they did in the past. He said the payment on CPR is not clear and the farmers are fully aware of sugarcane shortage therefore everyone is committed to sell sugarcane on cash. The farmers said they are ready to take Rs 5 per 40 kg less but only if it is paid in cash.

“The mills having interest in buying crop on credit should find another way of producing sugar,” he added. Pakistan Sugar Mills Association Chairman, Iskander Khan said the mills are not getting sugarcane from the growers and have not started crushing.

He said currently the price of sugarcane is high and after starting of complete crushing the actual price would be determined.

“The mills would come into full swing after Eid when the growers would bring cane in the mills and then only we would be in a position to forecast the price of sugarcane,” Khan said. “As soon the sugarcane is available in the market the millers would start crushing,” he added.

Sindh: Sindh Minister for Agriculture, Syed Ali Nawaz Shah, claimed on Monday that at least 18 sugar mills of the province have started crushing sugarcane. In a statement, he said some nine other sugar mills have also prepared their boilers and will start crushing soon. According to him, except for a few sugar mills such as the Mehran Sugar Mills, Matiyari Sugar Mills, Ghotki Sugar Mills, other sugar mills are not receiving sugarcane properly, causing delay in the process of crushing. He said mills require at least 130,000 maunds of sugarcane daily for starting the crushing process, the mills are receiving sugarcane up to 10,000 to 15,000 maunds, and the slow supply is affecting the crushing process.

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