|
Crushing blow |
|
By Aoun Sahi
|
Stakeholders cite
various reasons why the crushing season for sugarcane
was delayed this year. The inevitable consequence --
a shortfall of wheat in the country
 |
The
delay in sowing of wheat crop is expected to inevitably
result in a shortfall of wheat in the country and
many factors are responsible for this delay. The
main reason, according to the farmers, is the late
start of the crushing season of sugarcane by the
millers. Sugar millers started the process on December
3 and actually began crushing on December 10.
This means that sugarcane growers
cannot sow
|
wheat before December 20
as the Cane Act allows the millers a 15 day delay of payment
to growers for the purchased sugarcane -- the money the
farmers need for the sowing of wheat.According to the
Cane Act, the actual crushing should start latest by November
30. According to a white paper published by the Pakistan
Kisan Board (KBP), this delay of sugarcane crushing season
and hence the wheat crop sowing will cost a 30 per cent
decrease in the yield of the wheat crop. This will cost
a loss of Rs 10 billion to the national exchequer and
the country will, in all likelihood, import wheat again
next year.
Agricultural experts are of the
view that wheat crop should be cultivated before November
15. "The ideal time for wheat sowing in Punjab
is the first half of November. After that the yield
drops by one per cent with every passing day. It hardly
makes sense to sow wheat crop in the second half of
December, because the yield would be abysmally low due
to unfavourable weather conditions," says Pervez
Latif, Deputy District Officer Agriculture, Lahore.
Sugarcane is sown on 5 per cent
of the total under-cultivated land of the country and
Pakistan is the fourth largest producer of sugarcane.
Unfortunately though, it has the lowest per acre yield
of sugarcane. According to official statistics of the
agriculture ministry, sugarcane is cultivated on 2.7
million acres allover the country -- Punjab contributes
61 per cent, Sindh 28 per cent and NWFP 11 per cent
of the total under-cultivated land used for sowing sugarcane.
"Because lack of land holdings,
small farmers have to cultivate sugarcane and wheat
crops on the same land. After the sugarcane crop has
been cut, poor farmers need liquidity urgently to prepare
land for wheat sowing. The delay in crushing season
of sugarcane would not enable farmers to vacate their
lands in time to sow wheat. On the other hand the Cane
Act permits sugarcane purchasers a 15 day delay of payment
to growers. As a result, most of us will be deprived
of the chance to use our land for a timely cultivation
of the wheat crop," says Ghulam Nabi, a sugarcane
grower from Sargodha.
Pakistan Sugar
Mills Association (PSMA) had earlier announced that
they would be unable to start the crushing season in
time because of some genuine considerations. "During
the year 2002-03 the total sugar production was estimated
at more than five million tonnes, out of which only
4.5 m tonnes was consumed within the country. There
was a surplus of 0.5m tonnes which we were unable to
export because of high production costs. We kept asking
the government to purchase the surplus sugar from March
till October, but they failed to pay heed to our demands.
The government showed some willingness to resolve the
issue only when we threatened not to start the crushing
season at all," Zaka Ashraf of PSMA tells TNS.
The Sugarcane Commissioner
of Punjab, Nasim Nawaz confirms that such a settlement
did take place. "There was a surplus of 0.2m tonnes
sugar in Punjab and about the same quantity in Sindh.
The government has already purchased 0.1m tonnes of
sugar and another 0.1m tonnes will be purchased in January
next year. We have made it compulsory for sugar millers
to pay the entire amount of money of purchased sugarcane
to growers, if they want to sell the surplus sugar to
the government."
According to Ibrahim
Mughal, General Secretary KBP, "the issue of delay
in the crushing season is not as simple as it is presented
by millers and officials. A powerful import mafia working
in the government is responsible for the wheat crisis.
The mill owners get undue profit from this delay because
after November 15, the moisture in sugarcane starts
evaporating but the sugar content (sucrose) increases,
resulting in about 10 per cent decrease in the weight
of the sugarcane crop. Out of 2.7m acres used for sugarcane
cultivation, about 0.8m acres are used for wheat crop,
for various reasons like increased preference for other
crops such as tobacco. This year, however, it seems
that even this percentage of land will not be utilised
for wheat sowing.
"Moreover, the purchasing
price of sugarcane has not risen from Rs 40 per maund
in the last three years in Punjab while in Sindh it
is Rs 42 per maund. At the same time, the value of agricultural
inputs has increased. This is a disincentive for the
farmers to cultivate sugarcane. Some mill-owners, with
the help of middlemen, have even been able to purchase
the crop for as low as Rs 32 per maund," he adds.
The Sugarcane Commissioner
holds an entirely contrary view: "The present government
has decided to minimise the role of middlemen by making
sure that farmers get paid within 15 days. Moreover,
as the prices of sugar and agricultural inputs have
not increased for the last three years, it is not possible
to increase the price of sugarcane."
Zaka Ashraf of Ashraf
Sugar Mills denies KBP's allegations. "We pay Rs
40 per maund to whoever brings sugarcane to us. The
role of middlemen is enhanced by the growers and not
by the millers."
"Sugar millers are
not solely responsible for the delay in wheat crop sowing,
as the southern part of the province is still busy in
saving even the last ball worm (teenda) of cotton --
the cotton prices being higher, the growers delay it
till the fourth or fifth picking -- and not vacating
lands which ultimately results in delay in wheat sowing,"
he adds.
"The expected shortfall
in the wheat crop next year will be mainly due to a
delay in the crushing season and the late announcement
of an increase of Rs 50 per maund in the support price
of wheat. To some extent the better returns in cotton
in the cotton belt is also responsible. Actually the
government accepted the two major demands of millers
-- delay in crushing season and purchase of surplus
sugar -- but put aside the welfare of farmers,"
says KBP president, Sadiq Khaqwani.
An official of the Pakistan
Farmers Association, not wishing to be named, blames
the government for mishandling the issue. "There
is an absurdity as decision-making rests with two ministries
-- the ministry of agriculture and the ministry of industry,
but both look after their own interests. The import
mafia actually compels officials for a delay in decisions.
If the government solved the crises of carryover stocks
with sugar millers and announced the increase in support
prices in time, it would have saved the country from
a wheat crisis. Now the country may again end up importing
wheat next year fulfilling the desire of the import
mafia." He also denies that the role of middlemen
is enhanced by the growers; they are rubber stamp in
the hands of millers.
"But the man who
suffers the most is the farmer and nobody really cares
for him," he concludes.
|
