ISSUE OF SUGAR INDUSTRY:

There are various issues in sugar industry but i have taken

some important issues and then expand them.
The issues are listed below:
Low sugarcane yield per hectare

Load shedding issue.

Increase in sugar price.
Fighting sugar mafia.
Sugar crisis
Sugar export issue.

Sugar cane area issue.

Low Sugarcane Yield Per Hectare:

Sugarcane is an important cash crop of Pakistan. It is
mainly grown for sugar and sugary production. It is an
important source of income and employment for the
farming community of the country. The average
sugarcane production in the country required static
between 45-50 tons/ha, which is very much low
compared to the cane production by other countries.
The average yield of sugarcane in the world is around
60 metric tons/ha, while India and Egypt are getting
around 66 tons and 105 tons/has, respectively. In this
way, Egypt with highest cane yield in the world is
getting about 142 per cent high-yield than Pakistan.
India with almost similar soil and climatic conditions is
obtaining about 53 per cent higher cane yield than
Pakistan. As it is one of the cash crops of the country,
therefore, efforts should be made to improve its
productivity. As a result of these efforts, substantial
improvement can take place in its yield. Improved seed
production, quality control and distribution depends

largely upon the availability of skilled and competent

local manpower, which is present in insufficient in most
developing countries .
Low yield in Pakistan is mainly due to the following
reasons:
1. Shortage of Irrigation water
2. Cultivation of unapproved cane varieties
3. High input prices
4. Unavailability of inputs at required stage of
cultivation
5. Poor crop management practices
6. Lack of facilities for cane research & development
7. Weed infestation
8. Conventional planting methods or late planting
9. Early and late harvesting
10. Lack of Credit facilities
11. Poor drainage

Causes of sugar 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.
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.
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.

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The price structure is such that out of the sale price some 35 per cent of the cost goes to
farmer and 24 per cent to the government in taxes etc., 21 per cent to mills with nine and six
per cent to wholesalers and retailers respectively. The country exports sugar at low price and
imports the same at high rates.
Transporters, particularly trolley-owners also exploit mill owners by demanding additional
Rs250300 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
(Dr Ali Muhammad Khushk )

Increase in Sugar Prices:

KARACHI: Federal Minister of Commerce Makhdoom Amin Fahim declaring
provinces responsible for increase in sugar prices said that the federal
government has an ample stock of 300,000 tonnes of sugar but provinces are
not taking quota.
The federal minister said this while talking to media after a monthly meeting at
TDAP on Monday. He said that sugar price can be controlled at provincial level if
provinces take their quota from the federal government on time. We are
releasing sugar at utility stores if they are not selling commodity, then its Utility
Stores Corporations issue, he said adding that action would be taken against
utility stores in this regard.
Fahim during his visit at Trade Development Authority of Pakistan (TDAP) head
office, also met with the new CE TDAP and leading businessmen of the city. Tariq
Iqbal Puri who took charge as CE TDAP on 4th October 2010, assured the
minister that he would direct the organisation with determination to achieve the
export targets announced in the 3-year trade policy 2009-12.
The CE gave a detailed presentation on the new initiatives at TDAP, which
included: Launching of Web Portal, A regular monthly Press Conference,
Development of Product Documentaries, Up-gradation of Information &
Communication Library.
The CE emphasised that to make TDAP a knowledge based organisation,
capacity building of TDAP officers was imperative. Improved interaction with
trade & industry would be undertaken through forming of Sectorial Consultative
Committees.
The Minister of Commerce reposed his confidence in the leadership of Tariq Iqbal
Puri and appreciated the timely projects & initiatives being undertaken by TDAP.
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In a subsequent meeting with the trade representatives, the Federal Minister

said that the government has been successful in getting trade concessions from
European Union (EU) and urged the trade representatives to add more value to
the manufacture of goods for optimum utilisation of the EU trade concession.
He said that it will help Pakistans economy recover from immense stress caused
by the unprecedented floods across the country. He advised TDAP to provide all
the needed assistance to the private sector for taking benefit of this concession
and hoped that the private sector would be able to fully utilise this opportunity.
The minister advised the business community to change their traditional
business outlook and explore non-traditional, innovative, value-added products,
as well as non-traditional markets of Asia and Africa, instead of simply
continuing to focus on traditional products in traditional markets. As Asia and
Africa are showing high economic growth rates, this means greater demand for
our goods would be generated from there in future.
The minister assured the business leaders that the government is quite
cognizant of the difficulties the business community is facing, and will make
utmost efforts to resolve the difficulties (Rija Farooqi, 2014)

Fighting the sugar mafia:

Every event that happens in our lives has various
aspects to it. One aspect of the invasion of Muhammad
Bin Qasim at Deebal (near present-day Bhambore) is
that Hajjaz bin Yusuf had sent an army, under Qasims
command, to help and free Muslim pilgrims captured in
territory under Raja Dahirs control. But there is another
important aspect to all of this as well. Muslims were a
rising power in those days and were trying to spread
their influence to Asia, Africa and even Europe.
However, in this they couldnt afford to let even a small
ruler like Raja Dahir plunder Muslim ships and enslave
Muslim women and children because that would put the
writ of the whole Muslim state at peril.

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States rarely get the chance to fight big adversaries like

Alexander the Great but small rulers like Raja Dahir
provide them an easy opportunity to establish their
writ. With this in mind, one should look at present day
Pakistan and, in particular, the unfolding sugar crisis.

Some years ago, a situation arose whereby it became

known that some federal ministers, including then
federal minister for industries and production, had
hoarded large amounts of sugar. As a result, the price
of sugar began to rise. Eventually, the Supreme Court
stepped in and ordered the government to ensure the
supply of sugar at Rs40 per kilo. But the crisis didnt
end.

Meanwhile, the then finance minister said something to

the effect that the sugar thieves were sitting in the
cabinet and had earned Rs25 billion as a result of this
manipulated crisis. One may blame Shaukat Tareen for
many things but his honesty and courage cannot be
questioned.

The sugar mafia forms part of our parliament since

most of the 82 sugar mills in the country are owned by
politicians. Therefore, the government was unable to
control the sugar crisis. This, in turn, encouraged small
thieves, hoarders and profiteers. The result is that
sugar is now being sold at Rs130 per kilo.

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If the government were a little wiser, it would use the

sugar crisis to increase its goodwill and establish its
writ. It could initiate a crackdown against all criminals
involved, publish the names of powerful sugar mills
owners (and this includes several ministers and senior
politicians) and arrest the hoarders. It should also have
promptly arranged for the import of sugar, so that
increased supply would have led to a fall in prices
but it failed to do any of this.

People are now saying that a government that cannot

do small things like provide sugar to its people is
unlikely to solve big problems. Our government is
preparing itself to fight the Alexanders of the world but
doesnt want to fight the Raja Dahirs that make up the
sugar mafia. Why?

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