The government of Sindh’s Agriculture, Supply & Prices department has solidified its stance on the upcoming sugarcane crushing season for 2023-24 by establishing a definitive baseline. The department has set the minimum price for sugarcane at an unambiguous Rs. 425/ per 40 kg.
This directive mandates the Sugar Factories within the province to institute a quality premium payout mechanism for cane growers at the culmination of the impending crushing season.
A premium rate of fifty paisa per 40 kg has been stipulated for each 0.1 percent (inclusive of fractional proportions to be prorated) of excess sucrose recovery surpassing the benchmark of 8.7 percent. This benchmark gauged on an overarching sucrose recovery scale of each mill, underscores the government’s commitment to incentivize high-quality yield and excellence within the sugarcane industry.
It should be noted that retail sugar prices are already touching record highs of Rs. 150 to Rs. 170 and the move while providing farmers with fair prices for their crops will also result in a further rise in sugar prices in the upcoming weeks. Sugarcane was cultivated at 1.3 million hectares during 2022-23 with a record production of 91 million tons with area and production both showing a 4 percent and 2.8 percent increase over previous years.
