The perennial price dilemma of wheat and sugar

The seasonal nature of sugarcane and wheat production creates a recurring debate over price fixation and procurement. The minimum support price for sugarcane is typically set in October, followed by crushing in November, while wheat support price is determined around November or December, pending late February harvest. By the end of the kharif season, farmers demand price fixation.

The Sindh Abadgar Board and Sindh Abadgar Ittehad have already expressed their demands, urging the government to fix wheat support prices between Rs4,500 and Rs5,000 per 40kg and sugarcane at Rs500-Rs600 per 40kg for the FY27 season, aligned with their cost of production. Sindh produced 2.02 million tonnes of sugar in FY26, crushing 19.18 million tonnes of sugarcane, with a sucrose recovery of 10.38 percent.

In FY25, mills produced 1.62 million tonnes of sugar, recovering 9.48 percent sucrose from 16.4 million tonnes of sugarcane. Wealthy millers exploit price manipulation, to farmers' distress and consumers' detriment. Farmers argue sugarcane's minimum support price should be fixed in September since the crop matures by October, whilst millers contend sucrose levels rise only by November.

The Sugar Factories Control Act 1950, enacted decades ago, initially fixed sugarcane rates and crushing season in October, but amendments in 2009 enabled mills to crush by Nov 30. No independent research or farmer consultation preceded these changes. Millers have also strayed from the Nov 30 timeline, beginning crushing as late as December.

The Sindh government has not set sugarcane rates for the past two years, leaving farmers to question whether it will fix the price in FY27, marking the third consecutive year without an official price. The government's proposed deregulation policy and price fixation approach also raise concerns. Cash-rich middlemen continue to manipulate prices, exacerbating farmers' frustration.

While farmers complain of low wheat prices, consumers now pay more for flour. The government intends to import grain despite fixing wheat's support price in FY26 under IMF discipline but not sugarcane's price, despite legal requirements under the 1950 Act.