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PSMA slams decision to deploy officials at mills
[ Business Recorder - Sunday, February 14, 2010 ]

LAHORE: Chairman Pakistan Sugar Mills Association (PSMA), Punjab Zone, Javed Kayani, has strongly criticised the decision of the Sugar Advisory Board to deploy officials at sugar mills to monitor their production. In a statement issued here on Saturday he said that the industry was already complying with regulations and providing statistics to all concerned departments of the government. He argued that intervention has already proven to be detrimental and counter productive. The prices are always regulated by the supply and demand situation prevalent from time to time. Kayani emphasised that instead of monitoring the sugar mills, government should rather monitor the borders and pre-empt smuggling of sugar to neighbouring countries. He alleged that the constituent members including the sugar mills and growers were not invited to attend the said meeting, therefore all decisions arrived at have no bearing. He said the government had so far failed to import the requisite quantity. The sugar industry has been advising the government to keep sufficient stocks as production estimates for the current season are around 3.2 to 3.3 million tons. He said the private sector is reluctant to import high priced sugar because of uncertainty in the market and being apprehensive of government intervention. 'Therefore, during our last meeting with Secretary Finance the Association again reiterated that government should import the quantity required to meet the looming deficit. We have been voicing our concern about the high and escalating prices of sugarcane, which have been manipulated by the middlemen," he added. Javed Kayani claimed the industry is paying over Rs 240 per 40 kg for sugarcane as against the official support price of Rs 100 per 40 kg. He said if the government is sincere to safeguard the interests of consumers, adequate stocks should have been maintained to avert the shortages. He said due to harsh winter, fog and frost the process of photosynthesis slowed down and as a consequence sugarcane has not attained maturity which is evident from lower recoveries being reported by member mills.


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