Sugarcane purchase price fixed at Rs 170/40kg

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LAHORE: The Punjab government has fixed minimum purchase price of sugarcane at Rs 170 per 40 kilogrammes (kg) or Rs 425/100 kg (per quintal) or Rs 4,250 per metric tonne at the factory for the crushing season 2012-13. However, the sugar factories have been allowed to deduct transportation charges from the purchase price, incurred by them on the cane purchased at purchase centres and other locations away from the factory gate at the rate of Rs 1.25/quintal (100 kg) per kilometer subject to a maximum deduction for a distance of 40 km(s) from the factory gate for the crushing season 2012-13.

Punjab government has also fixed the rate of sugarcane (Dev Cess) at Rs 2 per 40 kg or Rs 5 per 100 kg (per quintal) or Rs 50 per metric tonne for the crushing season 2012-13.

The incidence of the Cess amount shall be shared equally by the sugar mills and the person (grower) selling sugarcane to the mill. In case the sugarcane obtained from the sugar mills own farm, the Cess at the rate of Rs 2 per 40 kg or Rs 5 per 100 kg (per quintal) or Rs 50 per metric tonne shall be paid by the mill.

Last year sugarcane purchase price was Rs 150 per 40 kg against proposed Rs 165 per 40 kg in the Sugar Control Board meeting.

The Punjab Sugarcane Department was considering fixing around Rs 175 per maund (40 kg) and the farmers were also expecting some Rs 170 price after the estimates of Agriculture Extension Department at around Rs 168 per 40 kg. Pakistan Sugar Mills Association Chairman Riaz Qadir Butt said they proposed fixing Rs 165 price in the meeting and no one opposed the proposal.

Under the Sugar Factories Control Act 1950, the sugarcane crushing season starts from the first week of October in Punjab province and continues till June 30. However this year crushing season has been delayed and it would affect wheat sowing and other seasonal crops.

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