The government disclosed the names of three big sugar mills and said they were responsible for the current crisis and hoarding of the commodity. The mills are Tandliawala Sugar Mills, Brother Sugar Mills and Kashmir Sugar Mills. According to the statement, the mills have held back 240,000 tons of the government-purchased sugar, creating an artificial shortage in the market.

Another sugar crisis is looming around the corner for the next season, as the farmers are not ready to sell sugarcane to the mills on credit and are demanding cash payments, the stakeholders of the industry. They said there are multiple reasons for not selling sugarcane to the millers including less sugarcane production and the prevailing sugar crisis.

The farmers are not ready to sell sugarcane on credit or on Cane Purchase Receipt (CPR) due to high demand. The farmers are offering Rs 100 per 40 kg for sugarcane and said they would only give their crop at cash. It is overall assessed that the growers were exploited in 2007 and 2008 due to surplus stocks of sugarcane but now there is less sugarcane production and the tide has turned in our favour.

Last year, there were 50 million tones of sugarcane production. The target for this year was set at 57 million tones, however, the production dropped to 48 million tones thus creating a shortfall of nine million tones. The water shortage, delayed payments of sugarcane to the farmers by the mills, frost attack and less availability of fertilizers was other reasons for low production. At the same time, the sugar millers have not ignited their boilers owing to sugarcane unavailability. Reportedly, only less than six mills out of 45 have started their boilers and still there is no availability of sugarcane.

Agriculture Forum of Pakistan Chairman, Ibrahim Mughal, said the farmers would not sell their crop on credit, as they did in the past. He said the payment on CPR is not clear and the farmers are fully aware of sugarcane shortage therefore everyone is committed to sell sugarcane on cash. The farmers said they are ready to take Rs 5 per 40 kg less but if the it is paid in cash.

"The mills having interest in buying crop on credit should find another way of producing sugar," he added. Pakistan Sugar Mills Association Chairman, Iskander Khan said the mills are not getting sugarcane from the growers and have not started crushing. He said currently the price of sugarcane is high and after starting of complete crushing the actual price would be determined.

"The mills would come into full swing after Eid when the growers would bring cane in the mills and then only we would be in a position to forecast the price of sugarcane," Khan said. "As soon the sugarcane is available in the market the millers would start crushing," he added.

It is overall pertinent that the PPP led Government should take concrete measures to pull the country out the present disastrous circumstances. Additionally the Supreme Court of Pakistan ought to have the Suo moto action against sugar mill owners.