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The Pakistan Sugar Mills Association (PSMA) stated on Thursday that no definitive date has been set to commence the sugarcane crushing season.

The PSMA has stated that multiple mill owners and their representatives participated in the Sugar Advisory Board meeting, where they expressed a firm position that sufficient sugar stocks are currently available. They mentioned that once these stocks are depleted, their mills will make individual decisions to commence the new crushing season, and there is no necessity for the federal government to issue an official notice. In this context, no definitive date for the beginning of the crushing season was set, and there is no valid reason to start the mills on November 15th.

They confirmed to the meeting that sugar reserves are adequate to fulfill the nation’s requirements until December 15. If the mills begin early, raw sugarcane will be processed when its sucrose content is lower, potentially leading to a reduction of approximately 300,000 tons of sugar production. This could result in underperformance compared to production forecasts and cause billions of rupees in losses for the national economy and the sugar sector. Moreover, the remaining sugar stocks held by the mills will strain their cash flow, resulting in additional financial burdens to maintain these inventories. Sugarcane farmers might also be affected, as mills may struggle to provide favorable and timely prices for the crop, similar to what was offered last year. The government will encounter challenges in selling costly imported sugar due to the early start of the crushing season, ultimately leading to significant losses for the national treasury.

The spokesperson stated that as long as the local sugar supply remained consistent in the market, prices stayed steady. The government unnecessarily imported almost 325,000 tons of sugar, and once it arrived, the government shut down the FBR portals to control its distribution. This action caused a disruption in the sugar supply chain across various markets, leading to higher sugar prices. The sugar industry neither benefited from nor was accountable for this situation. However, after recognizing the issue, the supply of sugar from sugar mills at the designated ex-mill price is now being restored.

Provided by SyndiGate Media Inc.Syndigate.info).