Lahore: Fixation of the ex-mill price of sugar is leading the sugar industry towards a crisis due to which most of the sugar mills will not be able to clear bank loans, cane bills and government taxes, said the Pakistan Sugar Mills Association, Punjab Zone.
The price fixed by the Punjab government at Rs 80 per kg is leading the mills to financial losses. The production cost of 1 kg sugar is around Rs 105.77 due to high sugarcane prices.
PSMA Punjab has written a letter to the Minister of Industries Hammad Azhar requesting him to look into the matter as the middlemen are the ones that are increasing the sugarcane prices.
The government’s decision of fixing sugar rates will also impact the capacity of the sugar industry to provide salaries for workers and employees.