Corporate Social Responsibility Table 6: Procurement/Support Prices of Agriculture Commodities29
It was clearly specified in the National Sugar Policy that the price of sugarcane is to be set according to sucrose content instead of weight. It was announced that the “mechanism of pricing sugarcane on sucrose content shall be introduced in all the provinces.� The prices were to be set on the basis of variety at first and later international pricing methodologies will be introduced. Moreover, to implement this decision a test case was to be established; two to three mills in each province would be encouraged by the Government to adopt this pricing practice for the year 200910. 30 According to the interviews conducted for this study in 2012 every manager did agree that prices should be fixed in relation with quality of the crop yet no such mechanism was in place in Pakistan at the moment. Mills in Sindh have paid premium based on sucrose contents to all growers but this brings about the problem of asymmetric information providing growers of inferior quality a freeride.31
29
Economic Survey 2009-10
30
National Sugar Policy, Government of Pakistan. 2009-10 Competition Assessment Study on the Sugar Sector in Pakistan, Competition Commission of Pakistan.
31
y34