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Govt allows 5pc rate cut on Indian sugarcane

LAHORE: Punjab government on Sunday allowed the deduction to sugar mills at the rate of 5 percent from Indian variety of sugarcane CO-1148 with immediate effect.

Official sources told APP here that sugar mills have now been allowed 5 percent deduction on Indian variety of sugarcane which has been grown upto 15 percent of total area under sugarcane crop. This step has been taken to fully discourage the farmers to grow this variety and gradually replace through phased programme.

Reportedly current sugarcane crop is less by 13 percent compared to last year's production, however, on account of feasible weather condition, is yielding better produce. The net national production of sugar is estimated over 3 million tonnes, which is sufficient to cater country's requirements.

Sources said that there is no cause of any alarm, as the size of existing sugarcane crop, will definitely cater the consumption needs comfortably.

Sources further said that the Punjab government, conceding the request of the Sugar Mills Association, Punjab Zone, on December 10 last had also reduced the sugarcane cess fund of Rs 1.75 to 80 paisa per 40 kgs sugarcane for the current crushing season 1999-2000 to bail the sugar mills out of financial crisis.

The crushing season is in full swing throughout the province as 37 sugar mills out of 39 have started production. APP