Sugar Mills in Pakistan
Sugar Mills in Pakistan
Sugar Mills in Pakistan
Sugar is a vital ingredient in most of out daily consumption articles. For example: Soft drinks juices, tea, biscuits, sweetmeats, bakery items deserts, pharmaceutical industry, etc.
Introduction
largest agro based industry after Textiles Pakistan is an important cane producing country and is ranked fifth in world cane acreage and 15th in sugar production Its share in value added of agriculture and GDP are 3.4 percent and 0.7 percent, respectively .The sugar sector constitutes 4.2 per cent of manufacturing The Sugar industry employs over 1.5 million people, including management experts, technologists, engineers, financial experts, skilled, semiskilled and unskilled workers.
HISTORY
At the time of independence in 1947, there were only two
sugar factories in Pakistan. The output of these factories was not sufficient for meeting the domestic requirements. The country started to import sugar from other countries and huge foreign exchange was spent on this item. the first sugar mill was established at Tando Muhammad Khan in Sindh province in the year 1961. During the year 1997-1998 there were 75 sugar mills. In the country and it produces 2.4 million metric tons sugar
hectares and provides the r aw material for Pakistans 81 sugar mills. Sugarcane is an important industrial and cash crop in Pakistan & it produces numerous valuable by products like, alcohol used by pharmaceutical industry, ethanol used as a fuel, bagasse used for paper and fuel.
NO. OF MILLS
81
CONTRIBUTION TO ECONOMY
46.8 TONNES
45.0-55.0 MILLION TONNES 30-43 MILLION TONNES 25.8 KGS 6.1 M ILLION TONNES RS.12.16 BILLIONS
Manufacturing Process
:
Production
MY 2008/09, sugarcane production is estimated at 51.5
MMT, a decrease of 19 percent over the previous year due to both a reduction in area harvested and yield. Pakistan's MY 2009/10 sugar production is forecast at 3.65 million tonnes up about three per cent from the current year estimate of 3.56 million tonnes, according to the USDA Foreign Agricultural Service.
CONSUMPTION
MY 2008/09 sugar consumption is forecast at 4.2 MMT
MMT. Total per capita refined sugar consumption is estimated at 25 kilograms, based on improved domestic supply and strong demand. imports at 730,000 tonnes.
Production Policy
The Government of Pakistan (GOP) is striving to
achieve self-sufficiency and sustainability in sugar production by ensuring the availability of inputs and establishing a sugarcane support price which is acceptable to all stakeholders. The sugar industry is looking for value added by-products, as well as reducing costs and promoting cultivation of high sucrose cane. For MY 2009/10 the state Government of the Punjab has enhanced the cane purchase price by 25 percent over the previous year making it Rs.100 per 40 Kg ($31.25 per MT).
30% of the crushed cane. The bagasse contains 50% moisture It is used as a fuel for boilers (processing stage). Bagasse is also used for chip-board and paper manufacture.
Molasses:
Molasses is a common ingredient in
baking, often used in baked goods such as ginger bread cookies. 80% of total available molasses is exported
Ethanol:
The Pakistan sugar sector has the capacity to
produce over 2.5 million metric tons (MMT) of molasses available for processing into ethanol. Pakistans sugar industry produces more than half a million tons of ethanol per annum from cane molasses, over 50 per cent of which is exported at an average price of about $500/MT. Main destinations include: Europe, Far Eastern (Korea, Japan, Taiwan and the Philippines) and Middle East (Dubai and Saudi Arabia).
Trade
MY 2009/10 sugar imports are forecast at 730,000 MT, and
MY 2008/09 sugar imports estimated at 700,000 MT. The government has traditionally imported sugar through the Trading Corporation of Pakistan (TCP) in an effort to moderate sugar prices. Imports of raw sugar are subject to a 25 percent import duty, a 16 percent sales tax, a 10 percent regulatory duty, a 2 percent withholding tax, and a one percent central excise duty (total tax = 54 percent).
Stocks
MY 2009/10 stocks are forecast at 1.05 MMT, based on
Sugar Crisis
The country is facing the worst sugar crisis in its
history with the price of sugar touching Rs. 54 per kg in the retail market and Rs. 52 per kg in the wholesale. Sugar prices have risen because of the demand-supply situation. The supply in the market is not enough to meet the current demand.
The main reason for the current rise in sugar prices are
created by the hoarders, wholesalers and the mill owners. Sweets which were earlier being sold at Rs150 to Rs180 per kg are now being sold at Rs260 to Rs300 per Kg.
Due to flood
5 to 10 percent crop was affected so far due to the heavy
floods and final figures would come after the end of floods. The meeting also decided that private sector would import the sugar at zero rated duty from the next season, instead of Trading Corporation of Pakistan (TCP). Moreover it was not possible for the new sugar to enter the market before December 1, 2010 and supplement old stocks and as such 1.2 million tons of sugar import will be continued as planned.
Recommendations
The Government should facilitate improved varieties of
sugar cane having higher sucrose recovery through Agriculture Research Institutes and more effective measures required for disease control and better pesticides used. Availability of adequate supply of water, appropriate use of fertilizer and proper spraying of insecticides & pesticides can improve yield per hectare.
wastages.
Conclusion
Sugar industry has a potential to achieve heights in
Ethanol which has been proved to be very helpful in developing economies and ease our import bill.
References
PSMA: Pakistan Sugar Annual Report
2008/09 USDA Foreign Agricultural Service Gain Report. Sugar Crisis in Pakistan research paper www.nation.com