Professional Documents
Culture Documents
Pakistan
REGULATORY DUTY ON
1)
SUGER:
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