Products

About

©2018 StudyMode.com

Sugar Industry of Pakistan

Topics: Sugar, Sucrose, Sugarcane Pages: 24 (8008 words) Published: February 8, 2011
| SUGAR INDUSTRY AND THE CURRENT SUGAR CRISIS IN PAKISTAN|
| |
4/15/2010| BUSINESS ECONOMICS PROJECT|
| “The accouterments of [Pakistan's] state power and prestige ring hollow when people are dying in their search for food”AbstractPakistan 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. Sugar is also the second most important cash crop in Pakistan after cotton. Self-sufficiency in sugar is a goal, but one that to date has proven illusive. The major sugar crop is sugarcane. 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.ACKNOWLEDGEMENTSThis report owes its final shape and form to the assistance and hard work of many people but first of all we would like to thank Almighty ALLAH. We as a team would especially like to thank Mr.Jawad Durrani, and Mr.Dayyam Siddiquie, who gave their valuable time and help to shape this report. Also our teacher Ms.Farhana Rehman, that without her help this would have been utterly impossible and our families who gave constant encouragement to uplift our enthusiasm. OVERVIEWThis report is a research report, intended for all teachers and students of economics. The nature of this report is analytical. We have analyzed the sugar industry of Pakistan and the ongoing sugar crisis. In this report, we have discussed numerous statistics relating to sugar in Pakistan, including the amount of production and demand, the number of sugar mills present, sugar’s impact on Pakistan’s economy, specifically its effect on the GDP, as well as statistics behind employment in the sugar industry. We will also go in depth about the sugar crisis, including its causes as well as possible solutions.| Contents

Abstract2
ACKNOWLEDGEMENTS3
OVERVIEW3
Introduction6
Introduction to report6
Overview of the sugar industry7
Production9
Production Policy9
Production of sugarcane10
Production of Sugar & Supply14
Demand & Consumption17
GUR20
Prices and cost of production of sugar21
Trade and impact on economy24
Employment level in the sugar industry26
REASONS/FACTORS BEHIND THE CURRENT SUGAR CRISES27
1) LATE OR NON-PAYMENT TO THE FARMERS & ITS RESULTS27
2) MAN MADE CRISES & SUGAR INDUSTRY PROFITEERING27
3) SMUGLING OF SUGAR AS “GUR”28
4) WATER FOR IRRIGATION & ADVERSE WEATHER CONDITION28
5) MONOPOLY OF PAKISTAN SUGAR MILL ASSOCIATION (PSMA)29
6) GOVERNMENT MISMANAGEMENT29
SOLUTIONS FOR THE CURRENT SUGAR CRISES30
1) PROPER AGRICULTURE POLICY30
2) INVESTIGATION COMMITTEE30
3) MONOPOLY CONTROL AUTHORITY30
4) STRICT ACTIONS AGAINST HOARDING31
5) PAYMENT DISPUTE31
6) AGRICULTURE DEPARTMENT31
7) SUGARBEET31
8) ANGRO RESEARCH INSTITUTES32
Conclusion33
Bibliography34

SUGAR...

Bibliography: www.pakistan.gov.pk
www.pakboi.gov.pk
www.finance.gov.pk
www.psmaonline.com
www.sbp.org.pk
www.dawn.com
www.thenews.com.pk
www.commerce.gov.pk
--------------------------------------------
[ 1 ]. Daily Dawn Editorial, 16/08/2009
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Sugar Industry Essay

    ...Sugar Industry Report Industry Analytics A SEMINAR REPORT ON “SUGAR INDUSTRY IN INDIA” Submitted in partial fulfillment of the requirement of Chhattisgarh Swami Vivekanand Technical University , Bhilai (C.G.) For the award of MBA Degree Session 2009-10 Guided By: Prof. Shhipra Sarkar Faculty of Management Submitted By: Ms. NUPUR AGRAWAL MBA – I SEM ‘A’ Faculty of Management Disha Institute Of Management And Technology (DIMAT) Satya Vihar, Vidhansabha, Chandrakhuri Marg, Raipur (C.G.) Sugar Industry Report Industry Analytics CERTIFICATE This is to certify that Ms NUPUR AGRAWAL,Of DIMAT, MBA Semester –I has successfully completed the Seminar Report in partial fulfillment of requirement for the award of MBA Degree prescribed by the Chhattisgarh Swami Vivekananda Technical University, Bhillai. This report is the record of authentic work carried out by the student during the academic year 2009-10. Internal Guide (Faculty of Management) Academic Head (Faculty of Management) Sugar Industry Report Industry Analytics DECLARATION I, Miss. NUPUR AGRAWAL hereby declare that the Seminar Report entitled “SUGAR INDUSTRY IN INDIA” is a genuine work done by me and all the information collected is the record of authentic work carried out by me during the acedmic year...

    Read More
    10214 Words 37 Pages
  • Essay about Pakistan Sugar mills

    ...Sugar History Details elaborated by the Greek historian Herodotus “the father of history” narrate that great king of Persia Darius commissioned a navel party to explore the River Indus to its mouth. Led by lonian Greek named Skylax the expedition proceeded east and hit the Kabul River and then headed south to Arabian sea, the outfall of River Indus. The mission was followed soon and in 510 BC the Emperor Darius of what was then Persia invaded India where he found "the reed which gives “honey without bees". The secret of cane sugar, as with many other of man's discoveries, was kept a closely guarded secret whilst the finished product was exported for a rich profit. It was the major expansion of the Arab peoples in the seventh century AD that led to a breaking of the secret. When they invaded Persia in 642 AD they found sugar cane being grown and learnt how sugar was made. As their expansion continued they established sugar production in other lands that they conquered, including North Africa and Spain. During the Muslim Agricultural Revolution, Arab entrepreneurs adopted the techniques of sugar production from India and then refined and transformed them into a large-scale industry. Arabs set up the first large scale sugar mills, refineries, factories and plantations. Sugar was only discovered by western Europeans as a result of the Crusades in...

    Read More
    3436 Words 13 Pages
  • Sugar Crisis in Pakistan Research Paper

    ...report as a valuable asset while studying Pakistan economy. Needless to add that we will look forward to your valuable feedback including the grey areas so as to incorporate them. M. Nabeel, Hassan zia BBA. A Contents Introduction: 5 Sugar Crisis Reality: 6 Recommendation: 9 Conclusion: 10 BIBLIOGRAPHY 11 References: 11 Introduction: Sugarcane is one of the most valuable crops in Pakistan. According to the Food and Agriculture Organization of United Nations FAOSTAT, Pakistan is the 15th largest producer of the sugar in the world, and 5th largest in the term of area in sugar cultivation. The sugar industry is the 2nd largest agro based industry which consists of 86 sugar mills. Sugar industry is the second largest after textile. Sugar sector makes up 4.2 per cent of manufacturing. Its shares in value added of agriculture and GDP are 3.4 percent and 0.7 percent respectively. According to the ministry of Industry and Production total crushing capacity of the sugar mills is about 505,000 tons. According to USDA Pakistan Annual sugar report state that total per capita refined sugar consumption is estimated at 25 kilograms and it is based on strong demand and improved supply. Sugar...

    Read More
    2481 Words 8 Pages
  • Importance of Indian Sugar Industry Essay

    ...IMPORTANCE OF INDIAN SUGAR INDUSTRY Sugar Industry occupies an important place among organised industries in India. Its main raw-material is sugarcane. The special thing for all kinds of the raw material is that it should contain the highest percentage of the content for which it is used as raw 16 material. But the quality of sugarcane of our country is not so good and researchers are trying to update it but due to lack of interest and proper attention from the government side, they are not succeeded yet today. Per hectare production of the sugarcane is also not improving which is a matter of great concern. It is probably due to lack of land fertility and lack of irrigation facilities. Other countries of the world such as Cuba, Fizzy & Caribbean's, which are very small in comparison to India, are producing much more sugarcane per hectare than India. The share of India in the total production of sugarcane in the world is 37%. But the production of sugarcane is only 15 tones per acre whereas in Java it is 56 tones and in Hawaii it is 52 tones i.e. almost four times than India. The production cost of sugar is also high due to inferior quality of Indian sugarcane. Since sugar mills are running to loss so they are unable to pay the cane grower growers timely. So the quality improvement in cane grower is the need of the time. The sugar...

    Read More
    1028 Words 3 Pages
  • sugar industry Essay

    ...egional sugar industry faces serious challenges Source: Caribbean News Now (Grand Cayman, Cayman Islands). 12/21/2010. Document Type: Article Accession Number: 2W62275966323 Database: Caribbean Search Translate Full Text:    HTML Full Text Regional sugar industry faces serious challenges Dec. 21--GEORGETOWN, Guyana -- Sugar production in the three biggest Caribbean Community (CARICOM) producing nations continues to face severe challenges. The once dominant industry has faced an uncertain future since the price of cane sugar in the European Union market was cut by 36 percent in 2008. The reduction marked the end of a long running sugar protocol, which guaranteed much higher than world market prices, but which was ruled by the World Trade Organisation (WTO) to be contrary to global free trade rules. In Guyana, the Caribbean's leading producer, workers have been staging industrial action to support higher salaries; Jamaican growers have had their own pay dispute while the ailing Belize industry was recently rescued by a government bailout. According to the BBC Caribbean Report, the state owned Guyana Sugar Corporation (Guysuco) says it is heading towards its lowest annual production in two decades as a result of strikes, heavy rain and operational problems at its newest factory. Chief executive officer, Paul Bhim...

    Read More
    1972 Words 7 Pages
  • Sugar Industry Essay

    ...NON-SUGAR SECTOR STRATEGIC PLAN EXECUTIVE SUMMARY 1.1 With a view to achieving the objective of a ‘modern agriculture’, a reorientation of the non-sugar agricultural sector is imperative. The main component of this reorientation strategy is to promote a transition from the traditional practices, towards a more sophisticated, technology-based approach to agriculture with focus on attaining a certain degree of self-sufficiency, meeting quality exigencies, developing the local agro-processing industry, promoting entrepreneurship, optimising export opportunities, conforming to international norms governing food safety and maximising on the potential benefits of regionalisation. 1.2 The need for this reorientation process in agriculture has become essential at this juncture whereby Government is actively promoting the adoption of new technology in all economic sectors. This rethinking strategy for agriculture has also become critical owing to a number of constraining factors, which altogether have proven that the conventional agricultural practices are too obsolete to sustain in the present highly competitive environment. The inherent constraints such as high vulnerability to climatic offsets, depleting cultivable land resources in favour of more remunerative economic activities, and high cost of labour and agricultural inputs have always posed severe impediments to agricultural development in Mauritius. Furthermore, the...

    Read More
    6113 Words 19 Pages
  • Growth in Sugar Industry Essay

    ... 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 India. 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 side1 . 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. The Indian domestic sugar market is one of the largest markets in the world, in volume terms. India is also the second largest sugar producing geography. India remains a key growth driver for world sugar, growing above the Asian and world consumption growth average. Globally, in most of the key geographies like Brazil and Thailand, regulations have a significant influence on the sugar sector. Perishable nature of cane, small farm landholdings and the need to influence domestic prices; all have been the drivers for regulations. In India, too, sugar is highly regulated. Since 1993, the regulatory environment has considerably eased, but sugar...

    Read More
    4177 Words 13 Pages
  • Edible Oil Industry in Pakistan Essay

    ...Case: Edible Oils Industry in Pakistan Analysis of the case This case provides thorough understanding of the Edible oil industry in Pakistan and how it has changed and evolved down the years. The case highlights different macro and micro environment factors which have an influence in shaping up the market of edible oils. Initially, Desi ghee was the most widely used edible oil in Pakistan. However, with the passage of time, there was a shift in trend from desi ghee to vanaspati ghee because of the limited supply of desi ghee could not keep up with the escalating demand. And in recent years, the increased health awareness among the public has led to a shift from vanaspati ghee to vegetable cooking oil. The increase in population and per capita income has caused edible oil consumption in Pakistan to increase six times over the last 30 years. This growth in consumption was leveraged by imports which were highly influenced by volatile oil prices in Pakistan. The case also discusses the nutritional value of saturated and unsaturated edible oils. Research shows that desi ghee and butter has saturated fat and vanaspati ghee (hydrogenated vegetable oil) has Trans-fat which increases the level of “bad” cholesterol also known as LDL. This increases the risk for heart disease and atherosclerosis. The processing of vanaspati ghee is also harmful to human health because nickel is...

    Read More
    1266 Words 4 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free