Sindh cabinet calls for mediation to resolve sugarcane price dispute

KARACHI: The Sindh cabinet meeting chaired by Chief Minister Syed Murad Ali Shah on Wednesday called for mediation between the sugarcane growers and millers to resolve the ongoing price dispute.

The meeting decided to allow the agriculture department to make another effort to find out a workable solution by bringing the stakeholders across table.

Minister for Agriculture Sohail Anwer Siyal briefing the cabinet said that the minimum price of sugarcane was fixed at Rs182 per 40 kilograms by Sugarcane Control Board.

This was challenged by the sugar mill owners in the high court, who directed the agriculture department to to settle the dispute between the growers and millers and come up with a solution.

He said that he held a number of both stakeholders. The growers demanded Rs216 per 40kgs while the millers remained stuck up at Rs132 per 40kgs. The agriculture department proposed to fix minimum price at Rs142/kg but both parties did not agree to it.

Thereafter, another meeting was held in which Pakistan Sugar Mills Association (PASMA) proposed Rs153/40 kg. The growers said that the minimum price may be fixed at Rs160/40kg and government of Sindh should provide a subsidy of Rs12 to correspond with the rate of Rs172/40kg allowed in 2014-15.

However, the cabinet rejected to provide the subsidy. The agriculture department was directed to hold another meeting with stakeholders and resolve the the dispute.

Sindh govt to enhance public-private partnership with ADB

The chief minister told the cabinet that the Sindh government has requested the Asian Development Bank (ADB) to expand and improve Public Private Partnerships in Sindh.

The ADB would support the Sindh government to develop a more financially sustainable and fiscally responsible PPP project portfolio under the Enhancing Public Private Partnership (EPPP) project.

He said that the project costs $184.13 million whereby ADB is contributing $100 million, DFID will provide $19.23 million as grant, while Sindh government will contributing $64.90 million.

The project has been approved by Executive Committee of the National Economic Council (ECNEC) and subsequently the loan and project agreement have been signed.

He added that certain amendments are required in the Sindh Public-Private Partnership Act 2010 to provide functionality of Project Support Facility which would finance, manage and monitor projects. The provincial cabinet discussed and approved the amendment.