Pakistan's MY 2007/08 sugar production is forecast to increase to 3.7 million metric tonnes because of higher yields and an increase in sugarcane acreage triggered by high market prices during last season, according to a US attache in Islamabad.
Total annual consumption is forecast to be 4.1 million metric tonnes, the attache said. Meanwhile, trial production of sugar beet has been encouraging and is expected to supplement cane production as well as conserve scarce irrigation supplies. Large quantities of molasses are being used to produce ethanol, which is mainly exported. Attache reports are not official USDA data. Following are highlights of the report.
PRODUCTION POLICY The Government of Pakistan supports cane production by setting a market support price, which may be announced either before or after planting. The federal government generally does not procure cane, but authorises the provincial governments to fix respective cane price in consultation with the representatives of the sugar industry and farmer organisations.
During MY 2006/07 cane prices per 40 kilograms were increased to Rs 60 for Punjab, Rs 65 for NWFP and Rs 67 for Sindh. There was a wide fluctuation in the prevailing market price due to competition and enhanced demand by the industry versus the farmer's strength to bargain higher prices. The provincial governments and mill authorities will increase extension activities to encourage farmers to enhance productivity.
SUGAR PRODUCTION MY 2006/07 refined sugar production is estimated to increase to 3.6 MMT (raw value), mainly due to an increase in sugar cane area and improved productivity due to favourable weather conditions and decreased pest pressure.
MY 2007/08 refined sugar production is forecast to be 3.7 MMT, due primarily to an expected increase in both area and production of sugar cane. As the country's requirement is 4.1 MMT, the domestic requirement will be supplemented through imports.
In recent years Minfal, in association with governments of Punjab and Sindh provinces, has conducted experiments on the cultivation of sugar beet. Results are encouraging as beets have a shorter growing season (4-5 months, compared to 12-18 months for cane) require fewer irrigation (5-to-6, compared to 22 for cane), and yielded 30 percent more sugar than sugarcane.
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