Farmers at Risk Due to Declining Sugarcane Prices
Published on: November 18, 2023.
Filed under:
Children running through green rice fields in Punjab, Pakistan (Source: REUTERS)
Rice exporters in Pakistan are facing challenges due to delays in the notification of the sugarcane support price. Caretaker Minister Amir Mir had announced that the support price would be Rs400 per maund and that sugar mills would start crushing on November 20. However, the delay in the notification has led to protests by farmers.
Farmers belonging to the Kisan Ittehad organized a demonstration in Multan to highlight the inadequate market and support prices of sugarcane. This issue is not limited to sugarcane; similar situations have been observed with cotton, rice, and maize. Farmers claim that the rising costs of fertilizers, seeds, electricity, diesel, labor, and transportation, combined with low prices for agricultural commodities, are signaling a crisis in the agricultural sector.
The ongoing farmers’ movement during the election season may pose challenges for sugar mill owners affiliated with political parties. It is estimated that 700,000 tons of sugar were smuggled out of the country last year, causing significant losses to the national exchequer. Despite abundant stocks, the Sugar Advisory Board allowed the export of only 250,000 tons, which led to profiteers smuggling the commodity.
In response to the allegations of smuggling, security has been increased on borders, and law enforcement agencies have seized sugar from secret warehouses. Punjab’s sugar mill owners, in light of the smuggling activity, increased the price of sugar from Rs90 to Rs140 per kg and postponed the start of the crushing season. The smuggling issue has also impacted the availability and prices of nitrogenous and phosphorous fertilizers, causing concern as the wheat cultivation season begins.
Leaders of protesting farmers have emphasized the need for collaborative policymaking between the government and farmers to enhance agricultural production and reduce imports. They claim that a mafia involved in hoarding and smuggling is exploiting farmers. Sugarcane cultivation has also declined due to financial factors.
A joint meeting of farmer organizations from Punjab and Sindh was organized to address these issues. Farmers expressed their determination to fight for their rights and urged the government to ensure the availability of fertilizers at official rates. They also questioned the performance of institutions like the Trading Corporation of Pakistan.
To address the smuggling issue and maintain stocks according to the country’s demand, the Federal Board of Revenue (FBR) has implemented stringent monitoring measures for sugar mills. Monitoring teams have been deployed to compile sales and stock records for all sugar mills. However, despite these efforts, the price of sugar is significantly higher than the government-approved rate.
Overall, the delays in the notification of the sugarcane support price and the issues faced by rice exporters and farmers highlight the challenges in the agricultural sector in Pakistan. Collaborative efforts between the government, farmers, and institutions are crucial to address these challenges and support agricultural production.
Source: [The Express Tribune](https://tribune.com.pk)
