Sugar Industries Of Pakistan

Sugar Industries Of Pakistan

Presented by:Mohd Amad Presented To:Mr Afaq Ali Khan Faculty:BBA(HONS)

Introduction of Sugar Industries The second consumer goods producing large industry is the suger industry in Pakistan. the progress of this industry has been very satisfactory during the last ten years. sugarcane and sugar beet are the raw materials for this industry. Two third of the of the world sugar productive is made of sugarcane and remainder by sugar beet. both of these two raw materials are abundance in pakistan. As the sucrose elements in the sugarcane grown in pakistan is less,the cost of suger production increases.

Continue… As the sucrose elements in the sugercane grown in pakistan is less,the cost of suger production increases.

History Of Sugar industries At the time of independence in 1947, there were only two suger industories in pakistan.one was situated in punjab and other was in (NWFP) the output was not sufficient for meeting the domestic requirments. The country started to import from suger from other countries and the huge foreign exchange was spent on this items.need was felt to increase the production of suger.keeping in view the importance of suger industry,the government setup a (PSMA) commission in 1957 to frame a scheme for the development of suger industry.

Continue… in this way the first suger mill was established at tando muhammad khan in sindh provenance district hyderabad in the year 1961.

Number Of Sugar Industries Before 2006 There was 74 sugar industries was working in Pakistan. out of which 38 are in punjab,30 was in sindh and 6 was in N.W.F.P. Accoring to 2006 There are 77 industries out of which 76 are in Pakistan and one is in kashmir According to 2007 There are currently 16 extra industrial person they have applied for license but government issues license to only 6 industrial persons.

Climate For The Production Of sugarcane The climate of the sindh is more suitable for the crops of sugarcane than that of Punjab because sucrose proportion in sugarcane of Sindh is higher than of punjab the same is the reason due to which the new suger plants are being setup in Sindh.

Importance Of Sugar Industries The sugar industry plays in important role in the economy of the country. sugar industry employs over 75000 people. including management experts,tecnologists,engineers.financial experts skilled, semiskilled and unskilled workers. it contributes around 4 billion rupees only under the head of excise duty and other levies to the government are also paramount significance. as every knows it has huge contribution in human daily routine life. it plays an important role in human life.

Cane-crushing Only 40 to 50 percent of total quantity of sugar cane is made available to the sugar mills for crushing purposes. while 5 percent is used as cattle feed and remaining 55 percent is utilized for making desi sugar and gur. Pakistan is also making sugar by sugar beet. sugar beet crop has become the very important and popular in (N.W.F.P) b/c the cultivators have accepted sager beet as a profitable cash crop. Demand for sugar beet is also increasing in the sugar mills. about 30,000 tons of sugar is being produced every year by sugar beet

Demand Suger is necessary item among the edible items of daily life but its demond depends on other factors also. For example: as the urbanization is increasing the people are using more sugar the rural population is also switching from desi suger to refined suger. Accoring to 1997-98: Per capita comsumption of sugar=15kp per year Per capita consumption of sugar+40kg to 50 kg in developed country per year import of suger decreased considerably in 1999 as against 1995 due to crop od sugar cane

Sugar Policy The government of pakistan, as policy ,atter has taken the following measures to develop the suger industry

REGULATORY DUTY ON SUGER: 1)

the local sugar industry the regulatory duty on import of sugar has been increased from 25% to 35% from 1191.the tax concession given on the machinary import for rural industries will also be allowed on the import of expansionary machines.

2)EXCISE DUTY: the government realize a duty on the production on sugar at the rate of RS:2.15 per kg this has been decided that if suhgar mill produces more than its average capacity, no duty will be realized on the additional production from the newly established sugar units, as campared to the general rate paisas fifty ;ess will be realized.

3) SUPPORT PRICE: the government with effect from the price period Of 98-99 ,has incresed support price of sugarcane by RS:200 per tp, so that 66 sugar factories may be generated maximum amount of sugar vcane for crushing.

4) PROFIT SHARING THE GOVERNMENT OF PAKISTAN HAS RECOMMENDED THAT SUGARCANE GROWS SHOULD ALSO BE ALLOWED TO SHARE PROFITS OF PUBLIC LIMITED COMPANIES IT WILL BE MADE APPLICABLE ON SUGAR INDUSTRY THROUGH OUT THE COUNTRY

4) DE-ZONING OF SUGAR MILLS:in In accordance with the new sugar policy, the sugar mills have been feed from zoning system according to this system od zoning the sugarcane growers were bound to sell their sugarcane only to the sugar mills of their own areas now all the growers are free to sell to those mills are situated in their own areas or not..

Production OF Sugar Industries World sugar production in 2005-06=144.2 million tons Sugar production of pakistan in 2005-06=2.715 million tons Sugar production of pakistan in 2006-07=3.3 million tond Annual consumption was=3.95 million tons Sugarcane production in 2005-06=50.1 million tons Sugar imports=.85 million tons Unsold sugar in pakistan=1 million tons Sugar consumed indirectly in sweet=65% Currently price of sugar=RS34 per kg Sales tax=17% Taxes=11% =RS3500/tons Federal taxes=5%

Problems ► ► ► ► ► ► ► ► ► ► ► ►

No government policy frame work Most of the industry holders are politians Lack of proper storage facilities Lack of control in either surplus or in less growth Cost of raw material High financed cost Lack of infrastructure Old machinaries are being used Heavy taxes Instable growth Formation of cartel prices by mill owners Shortage of water

Recommendations ► ► ► ► ► ► ► ► ► ►

Specific frame work policy should be implemented Check on mill owners,if they are creating a shortage of sugatr Early decisions,if imports needed Special sugar ware housemust be developed to control over surplus or shortage of sugar Usage of highly sophisticated machinaries for quality production Build better infrastructure Reduction in taxes, so in order to reduce price of sugar and also eliminate unnecessary taxes like Special export strategy should be developed Provide good support price Enhance the water supply system to growers

Sugar industy at global level ► ► ►

In the world 20 countries produced suger among them pakistan secure 11th rank in the world. Pakistan producing finest quality of sugar Sugar is of good quality