The outgoing Sindh government has set the rate for sugarcane at Rs425 per 40kg for the 2023-24 season and announced November 15 as the start of the crushing season, a decision not common in the past 15 years. While this move is seen favourably by farmers, as it appears to align with their demands, it’s notable since 2024 is an anticipated election year. Historically, determining sugarcane’s price and crushing date has been a contentious topic between farmers and sugar millers. The current rate marks a 41% increase from the previous year’s rate.
Historical Context and Challenges for Sugarcane Growers
Sugarcane pricing and crushing dates have seen various changes over the decades. Veteran sugarcane producers like Abdul Majeed Nizamani remember when the crushing season was fixed in October, as mandated by the Sugar Factories Control Act 1950. However, an amendment introduced by the PPP government shifted this to no later than November 30. This date is significant for farmers who wish to free their farmland promptly for the next season’s crops, often facing pricing and crop rotation dilemmas. Despite the demands from growers to raise the rates, the price remained static at Rs182 per 40kg in seasons between 2016-19.
A Shift in Sugar Millers’ Stance
A surprising element this year was the quick agreement by sugar millers to both the proposed rate and the start date for the crushing season. Some speculate that this move is influenced by electoral incentives, given the outgoing government’s roots in Sindh’s rural areas. The millers, often from influential backgrounds, previously resisted growers’ demands, but this year seemed different. Aslam Farooq, a former PSMA chairman, emphasized understanding the complexities faced by farmers and adjusting to market dynamics. Sindh Abadgar Board vice president, Mahmood Nawaz Shah, suggests that the shift may also be due to farmers diversifying their crops, affecting the sugarcane market.
This proactive pricing decision is in sync with other moves by the government, such as fixing the wheat support price at Rs4,000 per 40kg in 2022-23, acknowledging the challenges faced by farmers due to adverse weather conditions.
