- Punjab's notification directs mills to start buying sugarcane from November 15.
- Cane area has risen 16 per cent to around 2.452 million acres.
- The Sugar Mills Association's North Zone says mills need 15 days and that the Sugarcane Act, 1950 allows a start by November 30.
- The association says about 1.3 million tonnes of surplus sugar is still in mill warehouses.
Sugar mills in Punjab will start purchasing sugarcane from November 15, under an official notification issued after approval by the Governor of Punjab. The announcement has already drawn objections from the mill owners' association, which says the timeline cannot be met.
According to reports, mills will set cane prices under a market forces mechanism. The Punjab Food Safety and Consumer Protection Department has stated that farmers' rights will be protected.
Bigger crop, most mills functional
Around 2.452 million acres have been planted with sugarcane in Punjab this year, a 16 per cent rise on the previous year, according to reports citing sources.
Punjab has 47 sugar mills, of which 41 are currently functional, according to the same reports. The remaining six are not operating at present.
| Issue | Punjab notification | Mills' association (North Zone) |
|---|---|---|
| Start date | November 15 | Sugarcane Act, 1950 allows a start by November 30 |
| Readiness | Mills directed to begin buying cane | At least 15 days needed to make boilers and machinery operational |
| Surplus sugar | Not addressed in the reports | About 1.3 million tonnes in warehouses; export demanded |
Mills say the deadline is unworkable
The Sugar Mills Association of Pakistan's North Zone has voiced concern over the directive. In a statement, it said mills need at least 15 days to become fully operational, because boilers and heavy machinery take about two weeks to bring up to full working order.
The association pointed out that the Sugarcane Act, 1950 permits mills to begin operations by November 30. It said the Punjab government issued the notification at 9pm, directing a November 15 start, and called immediate implementation impractical.
Unsold stocks at the centre of the dispute
The association also linked the start of crushing to the sugar already in storage. It claimed that 100,000 tonnes of the government's 300,000 tonnes of imported sugar remain unsold, and maintained that crushing cannot begin until surplus stocks are cleared.
According to its statement, about 1.3 million tonnes of surplus sugar are lying in mill warehouses. It said mills have already paid billions of rupees in markup and taxes on these unsold stocks.
The association further expressed concern that no accountability action has been taken against officials allegedly responsible for providing incorrect figures. That remains an allegation, and the reports carry no response from the government.
What the association wants
The North Zone has urged the government to allow the immediate export of surplus sugar. It has also called for complete deregulation of the sugar sector.
The reports do not say whether the government will revise the November 15 date. The association has asked for surplus sugar to be exported and for the sector to be deregulated.
Questions and answers
When will sugarcane crushing begin in Punjab?
A notification issued after the Governor of Punjab's approval directs sugar mills to begin purchasing sugarcane from November 15.
Why are sugar mills objecting to the date?
The Sugar Mills Association's North Zone says mills need at least 15 days to get boilers and heavy machinery fully operational. It also says the Sugarcane Act, 1950 permits a start by November 30.
How will sugarcane prices be decided?
According to reports citing sources, mills will determine prices under the market forces mechanism. The Punjab Food Safety and Consumer Protection Department has stated that farmers' rights will be protected.
Image: Najamuddin Shahwani / Wikimedia Commons, CC BY 3.0
