Better sugar output expected this year

Sugar production is likely to jump to 4.6 million tons in country after the start of new crushing season (2011-12) which is 15 percent higher than the last year's 4.1 million tons learned Business Recorder on Friday. The sugar production would go up to 4.6 million tons by the close of the upcoming crushing season which would be 15 percent higher than 2010-2011 compared to 4.1 million tons of last year, told Deoomal A. Essarani, chairman Pakistan Sugar Mills Association (PSMA) Sindh Zone.
He said sugar production is expected to be increased after the start of fresh cane crushing season due to the anticipation of better sugar cane crop in the country. The sugar cane has been cultivated on 10 % more area as compared to last year, he added, besides yield of the cane looking much good due to availability of adequate water requiring the sugar cane crop.
Essarani noted that prices of the sugar would also be by slashed Rs 10 per kg after new sugar to be brought in markets. Sharing the details of sugar production in the year 2010-2011, Deoomal said that 84 odd sugar mills produced 4.1 million tons of sugar. Sindh produced 1.3 million tons, Punjab produced 2.5 million tons while Khyber-Pukhtunkhwa (KPK) stood at 0.250 million tons of sugar.
It is pertinent to mention no sugar has been imported during the year 2010-2010 as local production has managed catered the country needs. Deoomal hoped that in next season country would export extra sugar to other countries after meeting local demands. The annual consumption of sugar in country is around 4.2 million tons, he said, adding that sugar cane crushing season to be commenced by the start of November.
Business Recorder has learnt that Pakistan is the sixth largest sugar producer in the world. Its 86 sugar mills has the capacity of producing 7.0 million tons of sugar annually, indeed with full capacity utilisation that would need supply of 80 million tons of sugarcane, the best being 53 million tons in 2007-08. The surplus installed capacity is causing concern particularly in low supply season. The total outlay at current cost is US $1.50 billion. Present annual sugar consumption of the country has crossed 4 million tons valued at US $1.8 billion.
Being the second biggest agro-based industry, it is a source of revenue to the Government of Pakistan by about Rs 22.0 billion, to the growers by Rs 110-135 billion and to the vendors, other contractors, transporters and suppliers by about Rs 20.0 billion, beside providing direct and indirect employment to 1.20 million people particularly in the rural areas of the country.