, BUS 202 Presented to Mr. Masood Haider Zaidi / Ms. Amna Niazi
Sugar Crisis in Pakistan
It is a question that in Pakistan who is the responsible for sugar crisis and inflation of prices in Pakistan? There are three terror tries involved in it but they are blaming eachother. One is the Government who is striving to hide its Failure in Government, thesecond one is the owners of Sugar Mills, who are gaining benefit from the failure of Government, and third one are the public who are using sugar and sugar and they do opentheir eyes when doctor diagnoses them sugar, and they don't know either this diagnose isdue to crisis or prices.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 in1999-2000, and further 17 per cent in 2000-01.
An Introduction to Pakistan’s Sugar Industry
Pakistan is the 5
largest country in the world in terms of area under sugar canecultivation, 11
by production and 60
in; yield. Sugarcane is the primary raw materialfor the production of sugar. Since independence, the area under cultivation has increasedmore rapidly than any other major crop. It is one of the major crops in Pakistancultivated over an area of around one million hectares.The sugar industry in Pakistan is the 2
largest agro based industry comprising 81 sugar mills with annual crushing capacity of over 6.1 million tones. Sugarcane farming andsugar manufacturing contribute significantly to the national exchequer in the form of various taxes and levies. Sugar manufacturing and its by-products have contributedsignificantly towards the foreign exchange resources through import substitution.
No. of Mills81(71-Operational,2-Under Construction, 4-Completed)Crushing Capacity6.1 Million tonesContribution to Economy3.0 – 4.0 Million Tones-Share in GDP1.9%-Employment1.5 million (directly & indirectly)-Total InvestmentPKR 100 Billion (Approx)Average Yield Per Hector46.8 TonesTotal Cane Production45.0 – 55.0 Million TonesCane Available30-43 Million TonesAverage recovery of sugar9.1 (vs. world avg. 10.6%)Per Capita Consumption25.8 Kg Per capitaContribution to exchequerRs.12.16 Billion
Waqar Ali Khan E-048 Executive Master in Business Administration, Fall 2009