SUGARCANE is an important cash crop of Pakistan. It is sown on a large area of the country. A number of sugar mills have been established in the country. Also, some part of the sugarcane crop is used for making gur (brown sugar) in Khyber Pakhtunkhwa.

Sugarcane is a long duration crop compared to other cash crops grown in the country. Farmers require great skill and huge investment to grow this labour-intensive and cost-oriented crop, and face a lot of problems including increase in the cost of inputs, labour and water.

According to the Pakistan Sugar Mills Association, the area under sugarcane has increased by about 30pc in the last seven years, while output has more than doubled with the help of government subsidies for fertilisers and other aids.

The country produced seven million tonnes of sugar in the 2016-17 crushing season ending Sept 30, exceeding local demand of around 5m tonnes. Also, the association predicts this year’s crop at a record 8m tonnes.

The government ensures sugar exports through quotas in an effort to ensure sufficient local supplies. This year it has authorised 725,000 tonnes of shipment so far, which will make Pakistan the world’s ninth largest exporter.

However, the country has exported only about 350,000 tonnes. The traders estimate current stockpiles at about 1m tonnes.

Pakistan had allowed an export subsidy in 2015-16, set at Rs13,000 per tonne for export of 650,000 tonnes of sugar. The industry has again demanded a similar subsidy as mills are not in a position to export sugar at current international prices.

The sugarcane crushing season 2017-18 is fast approaching. However, the sugar mills will not be in a position to pay farmers for new supplies, while large stockpiles will stop domestic prices from rallying in the country.

The government should allow export of surplus sugar lying with the mills providing suitable subsidy. This will enable the mills to clear the outstanding dues of farmers in respect of the previous crushing season, earn valuable foreign exchange for the country and help mills to commence the coming sugarcane crushing season on time.

Khan Faraz
Peshawar

Published in Dawn, November 7th, 2017