Sugar Industry of Pakistan

Abstract

Sugarcane is the main source of sugar production in Pakistan and accounts for almost 99% of the total sugar produced in the country. Sugar is the primary sweetener used in most Pakistani beverages and soft drinks and is also used in bakery items, sweetmeats, confectionaries, as well as by the pharmaceutical industry. Per capita consumption of sugar in Pakistan stands close to 25 Kg/year which is highest among the developing countries. In terms of sugarcane production, Pakistan stands at No 5 in the world; whereas in terms of sugar production and consumption, we stand at No 8. However, when it comes to yield per hectare, we fall behind top 50 and according to some sources; we are No 60 in the world. It is estimated that demand of sugar would grow at pace with the increase in population and is projected to be at around 2% per annum. With the present yield per hectare and percentage recovery from sugarcane crushed, within next 10 to 12 years, Pakistan is likely to run short of enough sugar for its internal requirements. To generate enough sugar, it would require considerable increase in cultivated area and yield per hectare. At the contrary, a recent study suggests that almost 65% of the farmers have reduced the area for cultivating sugarcane crop. There is ever growing confrontation between mill owners and farmers over the sugarcane price and lack of planning for water reservoirs points towards a possible water shortage in the future. Together, all these issues signal towards a big challenge for the sugar industry in the near future.