Sugar Industry of Pakistan

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Topics: Sugar
| 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


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

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