THE country’s sugar industry, starting from only two small units in 1947, now comprises 77 large cane sugar mills and four beet factories, 22 ethanol distilleries, four beet pulp cattle feed plants and 12 board plants using bagasse. Another 3-4 new mills are in various stages construction.
Some of these factories also generate extra electric power and supply it to the national grid.
Similarly, sugar production which was only 8000 tons in 1947 has gone up to more than four million tons in addition to 2.5 million tons of molasses. Out of the total national output, Punjab produces 65-70 per cent, Sindh— 25-30 per cent and NWFP 4-5 per cent. (See figure 1 and 2).
The sugar and its by-products industry is the second largest with a total capital outlay of over Rs100 billion providing employment to more than 120,000 people. More than one million families are the beneficiaries of its allied industry.
The industry has remained a net foreign exchange earner right with the export of molasses and occasional export of surplus sugar. Besides, the requirement of wood products like fibre boards, chipboards, hard boards, particle boards, etc is largely met with the use of cane bagasse.
At the same time, the industry contributes more than Rs10-12 billion annually in the form of sales tax, road cess, and various other provincial and local taxes. It is also in an enviable position of generating its own electric power and does not need any eletricity from the national grid for operational purposes.
The industry’s raw material, sugar cane, is grown on about one million hectares, mainly in Punjab, Sindh and NWFP. The cane crop occupies only four per cent of the total cultivated area. More than 80 per cent of the industry’s equipments are manufactured locally.
Pakistan is the fourth/fifth largest country in the world in term of area under sugar cane and production of cane. It is also among the top 10 most sugar-consuming countries with per capita consumption of 28-30 kg raw value which does not include consumption of gur, khandsari, etc.
The industry’s profile shows the important contribution it makes to the national economy. Even its working efficiency and quality are comparable with international standards. But to make it more competitive and efficient and bringing down its cost of production, the following steps may prove to be helpful:
Sugar cane and sugar yield per hectare of about 48-50 tons and 6-7 tons need to be improved by adopting improved techniques and the latest agronomic practices, which will not only increase incomes of farmers but and also ensure adequate supply of raw material to factories. With this, the cost of sugar production could also be reduced.
Some of the progressive farmers as well as mills are getting much better yields of cane and sugar compared to the national average which is on the lower side. This shows that only few know how to handle the technology more correctly. Instead of extensive cultivation of sugar cane which is a much water-consuming crop, intensive cultivation may be targeted.
Currently, the industry produces six million tons of sugar but due to the non-availability of raw material, it is hardly able to work at 50-60 per cent of its capacity. This raises the cost of production and the country instead of being net exporter, has to import sugar.
The power co-generation policy for the industry as announced by the government is an incentive. If properly implemented, the industry can easily generate an extra 500-1000 mega watt electricity and supply it to the national grid. This will not only cater to our energy requirements, but also bring extra income to the industry beside improving the viability of the new projects.
Pakistan has so far remained net exporter of molasses. Now, with the establishment of distilleries, ethanol instead of molasses, a value-added product is produced and also exported. The government is considering 15-20 per cent blending of ethanol with petrol. This is a right approach which will help reduce fuel oil import bill.
Presently, 15-25 per cent of the total cane is diverted towards the production of gur and khandsari and sugar factories are getting short supply of cane. This trend needs to be checked.
In spite of the industry making significant contribution to the national economy, there is not a single sugar technology research and training college whereas India has three such colleges. The first institute there was established as early as in 1926. Even much less sugar producing countries have their own sugar institutes.
Such a research and training college is an essential requirement where young engineers and technicians could be trained and research work can be carried out on the problems facing the industry on the scientific lines.
The federal cabinet gave its approval for establishing such an institute as early as in 1988-89 but that still remains on paper. However, this needs to be implemented on priority basis with an allocation of 10 per cent of road cess/sugar cane development fund.