KARACHI, Jan 30: With sugarcane crushing in full swing the mills have started experiencing a rapidly rising inventory of the refined white sugar.
According to figures released by the Pakistan Sugar Mills Association (PSMA) the total available inventory of sugar, including last year’s carry over stocks of 45,000 tons, stood at 1.150 million tons.
During this period the mills managed to sell around 0.420 million tons or 36 per cent of the total inventory, leaving around 0.731 million tons or 64 per cent of unsold stocks with the mills.
Delay caused by ‘price war’ with the growers in commencing of new crushing season has proven to be a boon for the sugar industry, which is now experiencing higher recovery rate over previous years. The current year recovery rate of sugar stood at 7.88 per cent as against 7.48 per cent last year.
As per PSMA figures up to Jan 15, 2002, the industry has produced around 1.106 million tons of white sugar compared to 0.932 million tons recorded in the corresponding period last year.
After taking into account last year’s carry-over stocks of around 45,000 tons, total available inventory with the industry stood at 1.150 million tons. However, so far 0.420 million tons or 36 per cent of the available stocks had been sold leaving around 0.731 million tons of unsold stocks with the industry.
The 36 sugar mills presently under operation in Punjab have produced around 0.632 million tons as against 0.493 million tons in the corresponding period last year. The recovery rate stood higher at 7.64 per cent from 6.95 per cent of last year.
In Sindh, where most of the units began their crushing season in November 2001, are presently operating to capacity and so far 26 sugar mills have produced around 0.427 million tons compared to 0.408 million tons produced in the same period last year. There is slight improvement in the recovery rate at 8.29 per cent as against 8.26 per cent last year. Traditionally, Sindh province enjoys higher recovery rate.
The NWFP also recorded higher production at 38,420 tons as against 30,225 tons last year. The rate of recovery is better at 7.70 per cent from 7.07 per cent of last year.
The chairman PSMA Ashraf W Tabani welcoming government decision to lift sugar from the mills told Dawn it will save the industry from running into financial crisis and sick.