Government crackdown against sugar mills

Monday, September 07, 2009

KARACHI: The sugar mills owners have expressed their inability to pay off/retire Rs 40 billion loans and advances that they owed to State Bank of Pakistan (SBP) due to ongoing crackdown against the millers by the government. Talking to Chairman Pakistan Sugar Mills Association (PSMA) Iskandar Khan said due to the crackdown of law enforcement agencies

on the directives of government against sugar mills, the industry became bankrupt and it is impossible to retire the huge amount till October 31. The PSMA chairman said the government had opened tenders for the import of expensive sugar from international market by neglecting the local industry due to which the millers could not sold their sugar stocks in the market. Currently, the sugar mills have a stock of 1.3 million tons of sugar, but the government has started crackdown against the sugar mills to recover the stock under the cover of hoarding. The sugar mills owners have decided to close their factories and stop supply of white refined sugar to the wholesale market until the operation against the millers is stopped, he added.

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