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Sugar mills in Punjab are not receiving regular and adequate supplies of sugarcane as sugarcane growers are holding back their stocks.
Chairman, Pakistan Sugar Mills Association (PSMA), Punjab Zone Javed Kayani said this on Friday. He said that the government had announced Rs 80 per 40 kg support price of sugarcane before the start of current crushing season on the basis of which sugar could be available at a reasonable price. But intermittent supplies of sugarcane have gravely affected the flow of sugarcane, which has resulted in price escalation of sugarcane to Rs 125-130 per 40 kg.
Chairman PSMA Punjab Zone said the sugar industry is not in a position to recover the cane cost at present price of sugar at Rs 38 per kg level. Therefore, sugar mills are not making alleged profit. He said press reports are portraying as if the industry is trying to manipulate the price of sugar and trying to take advantage of the situation. He said the facts are contrary to reports. Price of sugar is directly related to the price of sugarcane and if supply of sugarcane remains disrupted then sugar mills will be constrained to make purchases of sugarcane at higher price than the government's announced support price.
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