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  • Dec 2nd, 2006
  • Comments Off on Two more Sindh sugar mills stop crushing
Two more sugar mills on Friday joined hands with the 20 sugar mills which have already halted cane crushing as the crisis creeps into third incessant day while armed clashes between the growers and millers have also been reported in some parts of the Sindh, sources close to the crisis said.

Twenty mills had halted their crushing process on Wednesday on the issue of non-arrival of cane from growers and now only six units are operational.

The remaining six operational sugar mills are also in a state of uncertainty whether to join the cartel of 22 closed sugar mills or continue their sugar cane crushing unremittingly and independently, sources added.

Industry sources said that armed clashes have been happened between some millers and growers, on the other hand the representatives of sugar cane growers have denied such reports and said that the situation have not yet reached to this level and negotiations were underway to resolve the issue amicably.

They said that closure of cane crushing was a preconceived plan evolved by the all PSMA Sindh zone members on the pretext of non-supply of sugar cane to mills from growers.

President Sugarcane Grower Association (SGA) Qurban Ali Shah strongly denied reports of any kind of violent clashes had taken place between both the parties. "Till the time I was in Mirpur Khas, no such incidents had occurred however some of the sugar mills were still operational in a full swing," he added.

He alleged that Federal Government was fully supporting the stance of the millers, which is unjust.

About the meeting with the Chief Minister Sindh Arbab Ghulam Rahim for the resolution of the issue, he said it was expected on Saturday (today). "We are making efforts through Sindh Agriculture Minister to arrange a meeting with CM Sindh and hopefully it will be held tomorrow (Saturday)," he maintained.

Qurban said that he would personally meet with the speaker Sindh Assembly in order to raise the issue on the floor of provincial assembly to make way for negotiations with the millers.

Moreover, 38 mills in the Punjab are functional while two mills are under way to commence cane crushing, sources in Punjab said.

On being contacted a senior member of Pakistan Sugar Mills Association (PSMA) Punjab zone said that situation in the Punjab was normal and so far no such violent incidents had occurred there.

He confirmed that sugar cane was arriving to mills in Punjab smoothly and sufficiently and there were no intentions of millers to bring their operations to a halt and would continue crushing till the end of the season.

"There is no agitation from growers against the millers in the Punjab zone for increasing the prices of sugar cane," he maintained.

He forecast that a surplus amount of sugar would arrive in the market from mills at the end of the season, as Trading Corporation of Pakistan (TCP) and private importers would also make imports of sugar.

"Around 3.5 million tonnes sugar is expected from sugar mills, 0.7 million tonnes from TCP and around 1.5 million tonnes from private importers, which will definitely surpass the consumption ratio 3.9 million tonnes.

He pointed out that Gur smuggling had in past badly hit the sugar acquisition, which was mostly used for alcohol purposes in Russia where it had a great demand.

"Around 0.5 million tonnes lesser sugar was produced due to the Gur production and its smuggling to Russia via Afghanistan and Central Asian states where its demand always remains high," he added.

Copyright Business Recorder, 2006


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