05-05-2012, 04:17 PM
SUGAR INDUSTRY OF PAKISTAN: HISTORY OF SUGAR INDUSTRY:
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At the time of independence in 1947, there were only two suger industories in pakistan.one was situated in punjab and other was in (NWFP) the output was not sufficient for meeting the domestic requirments. The country started to import from suger from other countries and the huge foreign exchange was spent on this items.need was felt to increase the production of suger.keeping in view the importance of suger industry, the government setup a (PSMA) commission in 1957 to frame a scheme for the development of suger industry.. in this way the first suger mill was established attando muhammad khan in sindh provenance district hyderabad in the year 1961Number Of Sugar Industries
Before 2006
There was 74 sugar industries was working inPakistan. out of which 38 are in punjab,30 was in sindh and 6 was in N.W.F.P. Accoring to 2006There are 77 industries out of which 76 are in Pakistan and one is in kashmir
According to 2007 There are currently 16 extra industrial person they have applied for license but government issues license to only 6 industrial persons Climate For The Production Of sugarcane The climate of the sindh is more suitable for the crops of sugarcane than that of Punjab because
sucrose proportion in sugarcane of Sindh is higher than of punjab the same is the reason due to whichthe new suger plants are being setup in Sindh.
INTRODUCTION:
“The accouterments of [Pakistan's] state power and prestige ring hollow when people are dying in their search for food” Abstract Pakistan is the 15th largest producer of sugar in the world, 5th largest in terms of area under sugar cultivation and 60th in yield. The sugar industry is the 2nd largest agro based industry which comprises of 83 sugar mills. With this scenario, Pakistan has to import sugar which exposes it to the effects of shortage and rising prices in the world. As is true in many countries, the Government of Pakistan is heavily involved in the sugar industry, regulating mill construction, trade and prices, and influencing farmers' crop decisions in various ways. One reason for the large government involvement with sugar is the political importance of the crop.
PROBLEMS FACED BY SUGAR INDUSTRY:
• A study it revealed that more than 65 per cent farmers have decreased the total area under cane production due to water shortage, behavior of the mills’ management, late payments, increased input cost, and diseases and rodent attack.
• There has been confrontation between growers and millers over price. Growers demand higher price for their raw material and millers complain about increase in production cost and imports.
• Late crushing causes dissatisfaction as well as financial loss to both, farmers and millers. Other problems are stagnant cane yield, non-payment of dues to growers by mills, and low import parity prices.
• Till now it’s not been cleared that is the current crisis manufactured/fake shortage or is it real and unavoidable.
SUGAR CANE CRISIS:
• Sugarcane is the second largest non-food crop after cotton and ranks fifth in respect of acreage. Prolonged drought and heat stress decreased its production by 22 per cent in 1999-2000, and further 17 per cent in 2000-01.
• Of late, there has been confrontation between growers and millers over price. Growers demand higher price for their raw material and millers complain about increase in production cost and imports.
• A study it revealed that more than 65 per cent farmers have decreased the total area under cane production due to water shortage, behaviour of the mills’ management, late payments, increased input cost, and diseases and rodent attack.
• Constraints faced by the growers are underweighting of cane at purchase centres and mill gates, undue deductions by mills up to 10 per cent, delays in payments, middleman, obtaining an indent, and the payment of premium.
• Transporters, particularly trolley-owners also exploit mill owners by demanding additional Rs250–300 per trolley during cane shortage, while a delay in unloading at the gate incurs an additional Rs100 per day for trolley along with the provision of food and tea for trolley drivers etc by the mills.
• The government intervenes by issuing export permits to mills, importing sugar on public account and controlling retail distribution below the market price through utility stores
• Consumption relationship indicates the price elasticity for refined sugar as four and income elasticity as eight in nominal terms. This implies that relatively small change in cane supply causes more proportional increase in sugar price.
• GROWTH IN SUGAR INDUSTRY:
Executive Summary In an era where there is a need for inclusive growth, the sugar industry is amongst the few industries that have successfully contributed to the rural economy. It has done so by commercially utilizing the rural resources to meet the large domestic demand for sugar and by generating surplus energy to meet the increasing energy needs of Pakistan.
In addition to this, the industry has become the mainstay of the alcohol industry. The sector supports over 50 million farmers and their families, and delivers value addition at the farm side 1 . In general, sugarcane price accounts for approximately 70 percent of the ex-mill sugar price2. The sector also has a significant standing in the global sugar space.