LAHORE: The Punjab chapter of Pakistan Sugar Mills Association has alarmed the federal government for not maintaining minimum sugar reserves by not implementing the 2006`s decision of the Economic Coordination Committee, saying mills cannot sell the commodity below their cost.

According to the association`s spokesman, the ECC in its meeting held in 2006 had taken a policy decision that the federal government would maintain a strategic reserve of 500,000 tons of the sweetener to keep prices at a reasonable level through open market intervention and to provide subsidised sugar to poor strata of society at Utility Stores and for Ramazan.He said the government had not implemented the decision in letter and spirit as a result there was no stock for strategic reserves to meet requirements.

He said in the last crushing season the government fixed minimum support price of sugarcane at Rs180 per 40 kg based on which the corresponding cost of production of sugar came to Rs60, therefore, it was impossible for the mills to sell below their cost.

The spokesman said the government should have replenished stocks when price of sugar was Rs50 and below so that it could be utilised at the time of need.

`Now maligning the industry is uncalled for as it is the job of the government to secure and maintain strategic reserves at all times, he said.