Sugar Mills Claim Cash Shortage To Pay Farmers As New Crushing Season Nears

Sugar mills are facing a severe cash shortage ahead of the new crushing season as sizeable unsold sugar stocks continue to tie up funds, the Pakistan Sugar Mills Association stated.

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• The association remarked exports would allow mills to generate cash while bringing foreign exchange into the country.
• The industry estimates that the upcoming crop could produce regarding 8 million metric tons of sugar.

Notably, the PSMA remarked the administration had acknowledged the presence of surplus sugar during a number of meetings but had yet to decide on the industry's request to export the excess stocks. The association remarked exports would allow mills to generate cash while bringing foreign exchange into the country.

With only two months remaining before sugarcane harvesting and the start of the new crushing season, mills are struggling to finance essential expenses, including plant maintenance, machinery repairs, farmer payments and employee salaries. Govt Drops Biggest Petrol Bomb on Public Since July.

In practice, the industry estimates that the upcoming crop could produce regarding 8 million metric tons of sugar. The existing surplus of around 1 million metric tons, nevertheless, could produce it tough for mills to store the new season's production.

Notably, the PSMA remarked mills were additionally carrying higher production costs since of rising sugarcane costs, taxes, wages and the cost of imported chemicals. Meanwhile, sugar rates have remained below production costs, putting further pressure on mills' finances.

In practice, the association remarked surplus stocks were accumulating in mill warehouses while buyers remained scarce in the domestic market. Holding the stocks is additionally increasing mills' financial burden as they have to continue paying bank markups on the funds tied up in unsold sugar.

In practice, the PSMA remarked international sugar costs at present offered a favorable opportunity for exports and called on the administration to allow shipments without further delay. According to the association, exports of the surplus sugar could generate between $700 million and $800 million in foreign exchange. Stay Connected with ProPakistani.

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For now, sugar Mills Claim Cash Shortage To Pay Farmers As New Crushing Season remains the part of the story worth watching, and further updates are likely as more details are confirmed.