Punjab’s sugar mills will begin buying sugarcane from November 15, according to an official notification, sources said on Sunday. The notification, issued after approval by the Governor of Punjab, marks the start of the crushing season.
Sugar mills will set cane prices under the market forces mechanism, sources said. Around 2.452 million acres were planted with sugarcane in Punjab this year, a 16 per cent rise on the previous year. Of the 47 mills operating in the province, 41 are currently functional, and the Punjab Food Safety and Consumer Protection Department said farmers’ rights would be protected.
Sugar mills question the November 15 deadline
The Sugar Mills Association of Pakistan’s North Zone has raised concerns over the notification, saying mills need at least 15 days to become fully operational. In a statement, the association said the Sugarcane Act, 1950 allows mills to begin operations by November 30. It added that boilers and heavy machinery take roughly two weeks to be made ready.
The Punjab government issued the notification at 9pm, directing mills to start crushing on November 15. The association, however, described immediate implementation as impractical for the mills.
Unsold sugar stocks and calls for deregulation
The association claimed that 100,000 tonnes of the government’s 300,000 tonnes of imported sugar remain unsold, and that the crushing season cannot begin until surplus stocks are cleared. It said about 1.3 million tonnes of surplus sugar is lying in mill warehouses, and that mills had already paid billions of rupees in markup and taxes on unsold stock.
The association also voiced concern that no accountability action had been taken against officials allegedly responsible for incorrect figures. It urged the government to immediately allow exports of surplus sugar and called for full deregulation of the sugar sector.
