INTRODUCTION

Pakistans Economy is basically agrarian in character, so for the

development of the Economy we should stress on agriculture
sector and industrial sector simultaneously because both sectors
have equal importance the agriculture sector feeds the people
and provides raw material for industry and finally serves as a
market for industry, 75 to 80.

People are attached directly or indirectly with agriculture sector.

But it does not means that the development of the country.
Because other sectors are also equally important.

Historical Background of Chashma Sugar Mills Ltd, Dera

Ismail Khan
A typical example of Chashma Sugar Mills established in Dera
Ismails Khan, After the construction of CRBC (Chasma Right
Bank Canal), the plain land of Dera Ismail Khan, suddenly
became the prize land, the prices of land increased by ten time
within a span of five years. Area under sugar cane was merely
18,000 acres, in the very next year it jumped by 96% when the
earning of growers was well above average the growers were
encouraged to grow more sugar cane, the data shows that when

the earning to yield ratio decreased, the growers were not getting
the high out, sugar cane area shoed decrease, when the support
price set by Government was better, the sugar Mills disbursed
sugar cane payments timely a increase in the area under sugar
cane showed remarkable increase.

Chashma Sugar Mills enjoys a good reputation among the

growers with respect to its weighment.

RESEARCH METHODOLOGY
Completion of any research work without having proper research
Methodology is too difficult. Research Methodology is the process
of Exploring the venues of research and data collection. The
following Methodology was adopted. To collect the required
information.

1. Through Questionnaire
2. Direct interviews with field expertise.
3. Literature Survey.
4. Personal Observations.
5. Reports etc.

I have used different ways to conducted my research. The data

given in this report is of Secondary Type data. To collect the
information and to reach the conclusion. I have use the following
ways.

I have taken the material from Annual Report of the Premier

Sugar Mills Mardan. I have also obtained the data from the
different official files and registers of both the Mills for example
the pay role register.

I have also got data from following

departments of both the Mills.

SOCIO ECONOMIC IMPACT OF CHASHMA

SUGAR MILLS DERA ISMAIL KHAN
Introduction
With the invent of industrial revolution, the mechanization has
improved in terms of output rate and productivity, however, when
the mechanization reached the masses in the rural areas it has
directly improved the financial as well as social standards of the
people living in the rural areas. Lately the internet has helped in

keeping them abreast with upto date information, helping people

to interact more frequently and taking food decision promptly.

The sugar Mills has very pivotal role to play in the uplift of the
masses of the rural because Mills is constructed in the area
where sugar cane is available, in such case benefit goes to the
grass root level, enabling the farmer to harmonize with the
industry take independent decision. Unknowing the Rural feudal
system breaks its shakels. A qualitative as well as quantitative
change in the standard of living could easily be visualized in the
areas where sugar factory in built.

The sugar Industry is unique in its operation a close liaison is

required between Mills and the growers of the Sugar Cane, since
the Raw Material could not be stored, thus close interaction for
longer period, forces the sugar Mills to safeguard the interest of
the growers and to facilitate them in the possible manner.

PROFIT And LOSS Account

For 2012
Sales Net
Cost Of Sales
Gross Profit
Operating Expenses
Administrative and General
Selling and distribution
Other Operating Charges
Operating Profit / (Loss)
Other Income
Financial Charges Net
Profit / (Loss) Before Taxation
Provision for Taxation
Current Period
Prior
Deferred
Profit / (Loss) After Taxation
Provision for Excise duty on sugar written Back
Sales tax refund / (Expense prior year)
Excise duty
Corporate asset Tax provision Written Back
Corporate asset Tax Refund

538518425
480012868
585055257
14401494
871510
623258
15896262
42609295
850352
43459647
56981491
13521844
3144000
7631228
10775228
2746616

2676219
200000
4676219
1929603

PROFIT And LOSS Account

For 2013
Sales Net
Cost Of Sales
Gross Profit
Operating Expenses
Administrative and General
Selling and distribution
Other Operating Charges
Operating Profit / (Loss)
Other Income
Financial Charges Net
Profit / (Loss) Before Taxation
Provision for Taxation
Current Period
Prior
Deferred
Profit / (Loss) After Taxation
Provision for Excise duty on sugar written
Back
Sales tax refund / (Expense prior year)
Excise duty
Corporate asset Tax provision Written Back
Corporate asset Tax Refund

811335253
719697287
91637966
16616449
1971691
699401
19277541
72360425
2014814
74375239
62869708
11505531

11505531.00

11293880.00

11293880.00
211561

CONCLUSION
The secret of the economic advancement of a country lies in the
industrial development of that country. Industrial development
can lead a country to the peak of progress and development.

Basically Pakistan is an agricultural and developing country and

the development of a country mostly depend on agriculture. Due
to agricultural economy the country has been facing some very
complicated problems from the very beginning.

If the world is thoroughly observed then the fact will not be

debited that the all countries are busy in converting their
agricultural economy into the industrial economy. In Pakistan
also Planning is made every year for this purpose and the
country is rapidly busy in gaining the industrial development.

If the impartial observation of the development of the country is

made then the fact will be come clear that N.W.F.P has remained
backward throughout the country in the economic struggle and
industrial revolution. Particularly the southern districts, which
are facing economical adversity and back of basic needs of day to
day life, from the very beginning when Pakistan came into being.

All there Districts, for instant Kohat, Karak, Bannu Dera Ismail
Khan owns only one sugar Mill, which is the sign of cruelty
otherwise the injustice, of these people. It is totally failed to meet
the increasing demands of these backward areas. Bannu Sugar
Mill, which from its establishing day,, is passing through an
experimental period. The amount of cultivated area, required for
a sugar Mill, is not available for this Mill even its twenty Seven
years age. According to the industrial experts, sugar cane should
be grown on 25000 acres of land, to run the sugar mill
successfully. But unfortunately, in District Bannu only 4500 acre
of land is under cultivation as a whole, where in different kinds
of crops are grown in this area.

Due to these circumstances, this mill faces failure to achieve its

target every year and this mill runs hardly 120 days throughout
the season, from the period of PIDC to data the mill runs in
deficit. The fact is noteable that the deficit decreases by giving it
in private sector an admirable increase in occurring in the
production field of the mill. The annual antecedents of annually
income and expenditure can be observed in this connection.

SUGGESTIONS
1.

Financial benefit the growers could only increase, if

growers increase their output yields, this will not only
give them higher output, it would also cost less to the
farmers.

2.

The portion of taxes and other levies collected by the

Federal Government and provincial Government should
be utilized in building infrastructures, where the Mills is
located.

3.

The Mills Management should try to hire the local labour

and train them in different field, so that they become
skilled and contribute towards the national economy.

4.

Payments to growers for their sugar cane should be

made timely, this would enable the sugar cane growers
to provide necessary input to their crop.

5.

Sugar Mills should establish a mechanism whereby

quality premium should be paid to the growers who are
progressive and sow high sugar content variety sugar

Cane. The sugar Mill will directly benefit from high sugar
content variety, the grower would get high return on
relatively less acreage, the national economy would also
improve by the same percentage.

REFERENCES
Annual Report of the Premier Sugar Mills Mardan
Sugar Crops Research Institute Mardan
Establishment, can and Field Research Department of Premier
Chashma Sugar Mills Dera Ismail Khan

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