Lahore: Pakistan Sugar Mills Association (PSMA) has stated that the high sugarcane prices are the reason behind an increase in the cost of sugar production that has led to a hike in sugar prices in the market.
According to the PSMA spokesperson, at present, the ex-mill prices of sugar are around Rs 88 and Rs 89 per kg instead of Rs 100 per kg.
The middlemen are looting both farmers as well as millers. They have purchased standing crops at a cheap rate from farmers paying them in cash and have sold the cane at a higher rate to the millers, he said.
As per the spokesman, “Sugar millers are bound by the government to make payment through the banking channel and are forbidden to make cash payments. This middlemen mafia in sugarcane was created after the elimination of zoning system in the 1980s.”