This is with reference to your Analyses and Comments under the heading "Sugar imports to set perfect stage for millers" which appeared on page 2 in the issue of November 23, 2009. In this report it is mentioned that:
1. Sugar consumption in Pakistan is 3.7 million tons per year.
COMMENTS: The consumption of sugar in Pakistan is 4.3-4.5 million tons per year.
2. Millers are planning to start crushing after Eid.
COMMENTS: Bulk of the sugar mills have already started the sugar cane crushing season from the 1st/2nd week of November 2009. However, the mills are confronted with the short supply of sugar cane (less than 50% of their capacity), lower sugar content and higher price of sugar cane ie 30-35% higher than the price fixed by the Govt. With the progress of the season, it is likely to increase further.
3. Cost of Production is around Rs 23-25.
COMMENTS: Under the present scenario the cost of sugar production including cost of sugarcane, processing cost, packing, 17% GST, financial charges and depreciation it comes to Rs 50-55 per kg of sugar. This will further increase before reaching the local market by adding selling & distribution cost, margin of profit, etc. In view of the above facts and figures, I will request you to ask your Research Wing to carry out in-depth study and see the ground realities before it is printed and that, too, in a reputed and well-circulated newspaper.
Such reports are very misleading! Please note that the sugar industry of Pakistan is one of the major and efficient industries and also one of the major contributor to the Exchequer of Rs 15 billion or more in the shape of GST, income tax and other federal, provincial and local taxes every year.
Ex-president, Pakistan Society of Sugar Technologists
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