13/04/2020
These sugar mill owners think Pakistanis are stupid
IGBH on the behalf of Pakistan want to answer these powerful Sugar mills!
One thing want to add in start, International sugar prices are 0.11 Cents/Pound or 32Rs/Kg /USD
THE GOVERNMENT DECIDES THE FOLLOWING
1) You decide the minimum cane price which we have to pay yet you do not decide the price of sugar.
This is not government, powerful Sugar mill owners (in government) decide support price for Sugarcane!
Higher than cotton and increase it regularly so farmer cant plant cotton. Support price of Cotton was 3600 PKR in 2012 and in the last few years because of your pressure not decided and cotton sold at 2200 Rs sadly.
2012: https://tribune.com.pk/story/334633/committee-farmers-propose-price-setting-commission/
2016: https://fp.brecorder.com/2016/03/2016031525686/
2019: https://www.dawn.com/news/1472494
Continuously decreasing it and playing on the name of farmers
2) You decide when mills should start the crushing season and if we can't.... we can get arrested.
Yes, because you play with farmers again. By not paying them and making their canes dry in the open air. Government can cancel this and let farmers shift to cotton, first setting attractive price for cotton.
3) You force us to crush all the cane in the fields... Even when we know sugar will be surplus!
This is not government, policy driven by you to make excess sugar and play with subsidy. Government should end this too.
4) You ensure that we pay for the cane in 15 days, while we sell sugar over 365 days.
Yes this is basic rule of Buisness, pay at the time when you get commodity.
5) You accuse us of hoarding sugar since we produce sugar in 120 days, however we have to distribute it over 365 days.
Because you are the one who call your self as Sugar mils owners, so its your duty to manage the supply.
6) You have decided that Sugar is an essential commodity. Then why do you charge 17% Sales Tax?
Whole world put sales tax on each publicly selling commodity, if you are not happy with this thing. IGBH encourage government to allow imports and put sales tax, people will not get sugar more than 38 Rs/Kg. not 80Rs/Kg.
7) You collect Rs.50 Billion revenue in Sales Tax from sugar annually. Is that not a burden on the common man?
You are the one who are afraid of import of sugar from International Market as its beneficial for common man and if its with sales tax common many will get it at 38Rs/Kg
WHAT WE CONTRIBUTE
1) We pay sugarcane farmers Rs. 300 billion annually during the season only in 120 days.
IGBH encourage you, not to pay once. You will not get sugarcane in the next season and you will fail to run your mills. Koi Ehsaan nai hai !!!!!!!
2) We are your national asset since we bring prosperity to rural Pakistan.
National assets? :P Cotton was major export of Pakistan even with 50% decrease in area because of sugar mills installation in cotton areas. Cotton contribute more than 16BN$ in exports of Pakistan. Where you stand, without subsidy ZERO and with subsidy using taxpayers money less than 0.5BN$
3) We are one of Pakistan's largest industries with an involvement of over 10.0 million people, mostly in the rural sector.
IGBH wish you are, actually you are playing with support price of sugarcane and cotton, forcing people to plant sugarcane and then saying involving 10 million people.
WHAT WE PROPOSE
1) YOU need to take a fair decision for all stakeholders.
Yes, allow imports, remove subsidy and set support price of cotton to international price. IGBH is sure that if government will any one of these step, Pakistan will earn more in exports, farmers will earn more and all sugar mills will close down their operation in 3 years. Fair enough as they are enjoying undue advantage.
2) If YOU want to continue to regulate the industry then regulate it FAIRLY... or DEREGULATE.
Yes, deregulate. Again IGBH suggest to take any one of these 3 steps which are quite fair
a. Allow imports
b. Remove subsidy
c. Set support price of cotton to international price
3) YOU must hire a reputable audit firm and evaluate the price of sugarcane and the subsequent price of sugar.
Yes and also tell this audit firm to find real values of Sugar in international market and we are paying alot more and value of cotton is quite high and we are paying farless.
IGBH estimates even we are not considering power, processing and manufacturing cost of sugar still cotton gives around 2191$-1107$= 1084$/acre more to Pakistan still we are giving 171000-122500=48500Pkr/acre more to farmer for planting sugar cane instead of cotton.
For more details follow:
https://www.facebook.com/TheIGBH/photos/a.616414031774053/2776770965738338/?type=3&theater
4) If YOU want us to continue to be liable to pay a minimum price of cane than YOU must be LIABLE to ensure a minimum price of sugar as well.
Government should remove minimum price of cane, I know farmers will mind but fair price of cotton will give them more.
5) YOU must not burden the common man to pay Rs. 11/- Kg Sales Tax on Sugar since YOU feel sugar is an essential commodity.
Government should allow imports and like all other commodities allow sugar mills to compete with International standards, follow the price internationally and not burden common man by more than 32 Rs/Kg.
6) YOU must abolish Sales Tax with immediate effect which will reduce the price of Sugar by Rs. 11 /- Kg immediately. This will remove a Rs. 50 Billion Tax burden from the common man annually.
Yes, IGBH estimates if government will open imports common man will get benefit of 48 Rs/Kg not 11. Govt should do benefit of common man and allow imports as Sugar mills demand.
IGBH agree :
FAIR GOVERNANCE - FAIR REGULATION - FAIR TRADE