Punjab Sugar Mills Paying Farmers Rs375–Rs480 per 40kg Amid Active Crushing Season

By Muhammad Shahzad — Lahore, Pakistan

LAHORE: Punjab’s sugar mills are paying farmers between Rs375 and Rs480 per 40 kilograms of sugarcane during the ongoing crushing season, officials confirmed. Cane Commissioner Punjab Amjad Hafeez provided these details, highlighting the active production and smooth operations across the province.

So far this year, sugar mills in Punjab have processed 5,409,889 metric tons of sugarcane, producing 430,784 metric tons of sugar. As of December 9, the province holds 542,900 metric tons of sugar stocks, including 112,116 metric tons carried over from last year, a quantity deemed sufficient for local needs.

The Cane Commissioner noted that before the season began, ex-mill sugar prices ranged between Rs171 and Rs178 per kilogram. In December, these prices have dropped to Rs154–Rs163 per kilogram, a reduction of Rs15–Rs17 per kilogram. Retail sugar prices have similarly fallen by Rs10–Rs15 per kilogram, with the possibility of further decline in the coming days.

Hafeez assured that all sugar mills are making timely payments to farmers. He added that mills are deducting Rs2.5 to Rs5 per 40kg as cess. For instance, Baba Farid Sugar Mills in Okara purchases sugarcane at Rs375 per 40kg, while Two Star Sugar Mills in Toba Tek Singh buys at Rs380 per 40kg. Price variations are influenced by transportation distance, which can increase or decrease the per-unit rate accordingly.

This update highlights the stable operations of Punjab’s sugar industry and ongoing efforts to ensure fair compensation for farmers.