KISAN BORD PAKISTAN WILL PROTEST ON LESSER PRICES OF SUGER AND WHEAT ON 20-11-2013.
http://epaper.brecorder.com/2013/11/12/13-page/518888-news.html
LAHORE: Kisan Board Pakistan (KBP) has launched a mass contact campaign across the country to gather farmers against what it said anti-agriculture and anti-farmer policies of the government causing severe blow to the sector.
According to KBP sources, the provincial and central leadership of the Board initiated this move as protest against delay in announcement of minimum purchase price of sugar cane and delay in start of its crushing season and delay in support price of wheat before start of its sowing.
They claimed that delay in announcement of these prices is resulting in exploitation of growers by the sugar millers. They said sugar millers are buying sugar cane at old rates and growers are forced to sell their produce at lower than input rates.
Likewise support price for wheat has also not been announced and it is feared that it may result in import of this commodity in heavy quantity.
http://epaper.brecorder.com/2013/11/12/13-page/518888-news.html
KBP launches drive against govt policies
RECORDER REPORTLAHORE: Kisan Board Pakistan (KBP) has launched a mass contact campaign across the country to gather farmers against what it said anti-agriculture and anti-farmer policies of the government causing severe blow to the sector.
According to KBP sources, the provincial and central leadership of the Board initiated this move as protest against delay in announcement of minimum purchase price of sugar cane and delay in start of its crushing season and delay in support price of wheat before start of its sowing.
They claimed that delay in announcement of these prices is resulting in exploitation of growers by the sugar millers. They said sugar millers are buying sugar cane at old rates and growers are forced to sell their produce at lower than input rates.
Likewise support price for wheat has also not been announced and it is feared that it may result in import of this commodity in heavy quantity.
People say,Y is the sugar industry run by mafias and politicians ?
ReplyDeleteY ?
1st people have to understand that the sugar industry is based on the thesis,that cane is the easiest and highest risk adjusted return,for the farners – and to keep farners from starting a Tahrir or joining ISIS. Hence,over supply of cane and over-production of sugar,is an accepted reality of cane farming,in Pakistan
This ensures perpetual raw material supply for the mill,and a PASS THROUGH of all costs to the state – on a defacto basis.Defacto basis,is key,as there is no contractual arrangement for the pass through – which is a threat to the economic security of the state,as the mill owner can create shortages,spikes and supply and payments crisis and easily manufacture repetitive, but ingenious reasons for debt waivers,tax reliefs,export subsidies and drawbacks.
Excess cane production and sugar,is the disaster scenario for the Pakistani state.If there is a bad crop,international sugar prices would not rise,to an extent,to make imports on a duty free basis, costlier than the NSR to the sugar mill. In fact,the imported sugar could be sold at a profit to dealers,to more than offset the indirect tax revenue earned, by the state,on cane purchases by mills (mandii/purchase tax) and sale of sugar by mill (excise and sales and VAT tax)
Y is the mafia required in sugar ? dindooohindoo
Phase 1
To start strikes in mills of competitors
To divert raw material supplies of competitors
To set fire to bagasse stock of competitors
To monopolise truckers for mill logistics
To choke off the logistics for the mill competitors
To break unions in workers and truckers
For the above,a mill owner needs the support of the police,mafia and the neta
Phase 2
To manipulate raw material supplies,as under:
To downgrade and reject materials purchases
To delay purchase payments w/o delayed interest
To pick and choose cane suppliers
To tamper quality,moisture and weighnent tests
Using dummy names to route purchases from captive plantations
Route farmer purchases,as captive plantation purchases
To run a racket of farmers cane bills discounting
To organise dharnas/riots/logistics blockades, with the aid of farrners
To charge financial conversion charges for payments to farrners in cash
For the above,a mill owner needs the support of the police,mafia and the neta
Phase 3
To recover the costs of fire insurance and LOP insurance, there are accidental fires in bagasse stocks – once in 5 years, to recover,in bogus claims – the aggregate premiums paid over 5 years
Phase 4
To con the state in export subsidies and drawbacks
To con the state w.r.t CDR/OTS with banks
To con the state w.r.t capital and interest subsidies
To tamper the power consumption meters of CPP and power from grid – which is the only forensic proof of production
Phase 5
Bogus exports to eat up the subsidy and drawbacks – from land dry ports and sea ports
Routing exports proceeds on actual and bogus exports,via hawala and other modes
Manipulating cost,production and stock records to inflate costs,make off the books sales and purchases and hide stocks of finished goods
Selling bagasse in cash,instead of selling power to the grid
Creating shortages and spikes in prices of raw and processed/refined sugar Make fake cash purchase bills to generate cash for the sugar mill
For all the above,you need the mafia and the neta, AND also, since the farnmers are voters for the netas.Since the netas cannot outsource the political risk of the cane souring and payments,to a private party – and that,it is a no-loss, monopoly business,the netas are in the sugar mills,and will stay so,forever.