President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Monday asked the government to find a solution to the standoff between cane millers and farmers which is acceptable to both parties.
Increased sugarcane production has resulted in larger surplus stocks and bigger problems which need immediate attention of the federal and provincial governments before the situation can become unmanageable, Mian Zahid Hussain said.
The Veteran Business leader said that the growing tensions between owners of the sugar mills and growers is to hit production, jobs, millions of sugarcane planters and the market catering for the needs of the whole population.
The Former Minister said that sugar mills are demanding increased subsidy on the export of sugar to tackle surplus stocks of five million tonnes which can increase to eight million tonnes due to the bumper crop.
Millers want the federal government to increase export subsidy from Rs.10.70 to Rs19 otherwise they will not be able to pay more than Rs145 per 40 kg of sugar can whose price has been fixed at Rs 180 per 40 kg.
On the other hand, the growers want the Sindh government to announce a price of Rs 182 per 40 kg before the crushing and prolonged disagreement can delay crushing which will not only hit growers but also damage wheat and other Rabi crops that follow sugarcane crop.
Punjab has already notified the price of 40 kg of sugarcane at Rs180 but the government of Sindh is yet to notify the prices.