LAHORE, Sept 7: The sugar industry may be the first one to bear the brunt of the impending World Trade Organization (WTO) if it failed to improve in efficiency and technology.

This was stated by experts and representatives of farmers’ bodies here on Sunday while talking to Dawn.

They held the government equally responsible for failing the industry and farmers with lack of any investment in research and development in the field.

“Sugarcane is the fourth biggest cash crop in the country being sown on 2.7 million acres,” Ibrahim Mughal of the Pakistan Kissan Board said.

“The acreage represents eight per cent of world total crop, but only four per cent of yield. This is largely because of low per acre yield which, in Pakistan, hovers around 480 maund, again lowest against the world average of over 700 maund. The low yield speaks volumes of the condition of the crop health.”

An official of the Farmers Associate Pakistan (FAP) said: “it is not only the per acre yield that leaves much to be desired but also sucrose content which produces sugar.

“The world average of sucrose content (recovery) ranges between 13 to 15 per cent. In Pakistan, it does not go above 8 to 9 per cent.

“The low recovery costs the farmers and industry billions of rupees. The stakeholders — government, farmers and industry — can be held responsible for this failure.

“The farmer is yet to learn even the basics of sugarcane sowing. Out of 2.7 million acres, hardly 100,000 acres are sown scientifically and seed properly fungicide. This naturally results into pathetic yields and hurts farmers.”

The government has not bothered to develop any new variety that could give better yield and recovery. The industry, on its part, has not been able to improve its aging technology that could compensate to some extent for first two failures.

The combined effect is there for everyone to see, the FAP official said.

A farmer of central Punjab was of the view that the farmers could switch over to other crops, but the industry did not have any such option.

“Once the WTO regime takes effect, which is only months away, the industry would be beaten out of competition because of these three factors. It would neither be competitive nor saved from the outsiders.

“It is time for all three stakeholders to pull their socks up and get ready for the competition,” he said.

“The WTO regime offers both challenges and opportunities. It would depend how someone approaches it. Around 77 mills in the country represent an investment of billions of rupees. If they come under pressure, which they surely would, the country may be in trouble,” he said.

An official of the Pakistan Sugar Mills Association (PSMA) said: “the industry, on its own, has a little margin for manoeuvring. It can only make sure that trollies are off-loaded in time and effect some technological changes that could improve recovery to some extent. No doubt that it can be done, but it would have a very limited affect.

“New technology could improve recovery by not more than 0.2 to 0.3 per cent. It could obviously bring some relief for it, but would not increase its international rating or competitiveness. It could also save some energy, but again, the industry needs a quantum leap both in sugar variety that could only come from the government and farmers,” he insisted.

Sadiq Khaqwani of the Kissan Board said “in fact, Pakistan signed on the dotted line of WTO without much of thought. Now it is in for a big trouble if it did not take timely measures and sugar industry would be the most vulnerable.

“Sugar price in the world market hardly goes beyond Rs10 per kg. It could out-compete local industry with big margin, unless everybody contributes.

“The crisis should also work as eye-opener for the policy-makers and they must take stock of ground realities before going to Cancum summit in Maxico. Any repetition of mistake could cost Pakistan dearly and there would be no redemption,” Mr Khaqwani insisted.