Punjab orders sugar mills to start crushing from November 15

Punjab's sugar mills are to begin buying sugarcane from November 15 after the provincial government issued a notification for the start of the crushing season, ARY News reported. The notification was issued after approval by the Governor of Punjab, and cane will be bought at prices determined by market forces rather than a fixed rate.

Sugarcane has been planted on 2.452 million acres in the province this year, 16 per cent more than last year, according to figures quoted by ARY News. Of the 47 sugar mills in Punjab, 41 are currently working. The Punjab Food Safety and Consumer Protection Department said farmers' rights would be protected.

The Sugar Mills Association of Pakistan's North Zone objected to the timing. In a statement, it said mills need at least 15 days to become fully operational because boilers and heavy machinery take about two weeks to bring up. Under the Sugarcane Act, 1950, mills may begin crushing by November 30, the association said. It said the notification was issued at 9pm and that immediate implementation was impractical.

The association said about 1.3 million tonnes of surplus sugar is lying in mills' warehouses, and that of 300,000 tonnes of imported sugar held by the government, 100,000 tonnes remains unsold. Mills have paid billions of rupees in markup and taxes on unsold stock, it said, and the season cannot begin until the surplus is cleared. No accountability action has been taken against officials the association blames for providing incorrect figures, it said. It asked the government to allow export of the surplus sugar immediately and to deregulate the sector completely.

UrduPoint reported that the notification had been prepared and was expected shortly, quoting sources in the Food Security and Consumer Protection Department. It carried the same cultivated area of 2.452 million acres and the same 16 per cent increase, and said all mills in the province would procure cane at prices set by market forces.