The Pakistan Sugar Mills Association, Punjab Zone, has said that during the current crushing season, rates of sugarcane have been increased to a phenomenal extent and the sugar industry is not in a position to recover the cost of sugarcane even at higher sugar rates. In a statement here on Monday, the PSMA, Punjab Zone chairman, Mian Shahid Shafi said that speculators and hoarders have increased the sugar rates in view of shortage of sugarcane.

As a consequence, farmers have stopped supply of sugarcane and also suspended harvesting, which is a cause of concern and has given impetus to imbalance in supply and demand.

He said the situation warrants shutdown as the industry has lost its viability and even at present recovery level in Punjab we cannot recover the cost of sugarcane despite the fact sugar market rates seem pretty attractive to the outside world, he added.

He urged the growers' community to restore supplies at reasonably increased rates and roll back from the present level of Rs80 per 40 kg, which has jeopardised the operation of industry.

Copyright Business Recorder, 2005