KARACHI, Dec 24: A drastic fall of 48 per cent in white refined sugar production has been recorded since the start of new crushing season from the second week of last month.
According to the figures issued by the Pakistan Sugar Mills Association (PSMA), only 95,550 tons of white refined sugar had been produced up to Nov 30, as against 185,094 tons production achieved in the corresponding period last year.
Delay in start of new crushing season particularly by the Punjab sugar mills owing to a ‘price war’ over cane between the millers and growers has been the reason for decline in production.
Much of the production had been achieved by the Sindh sugar mills, where 65,993.91 tons have been produced by 21 mills. The new crushing season almost started in the second week of last month.
However, it is encouraging to note that the new crushing season has started with better recovery ratio, particularly in Sindh as it improved from 6.08 of last year to 6.39 per cent this season.
But the ‘price war’ between the millers and growers in Punjab has resulted in a long delay in bringing a large number of mills into operation. Out of 37 sugar mills, only six units have started the new crushing season in the last week of Nov or early this month.
Consequently, only 24,997.50 tons of white sugar have been produced by the six mills in Punjab. In NWFP out of five sugar mills three have started their production. These mills have produced 4,558.60 tons up to Nov 30, as against 6,281.10 tons recorded in the same period last year.
Although the PSMA has not shown any carry over stocks in its report, sugar dealers and importers claim that the new crushing season started with 0.5 million tons of white sugar stocks.
With average monthly consumption of 240,000 tons the country would need around three million tons to meet domestic demand for the entire new season (Nov to Sept), dealers said.
Private estimates put the current season production at little over three million tons. This means that sufficient sugar stocks would be available this season and there would be no need of importing white sugar.
