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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.
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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.
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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
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