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Sugar industry in Pakistan.

Total addition of TCD due to new mills during 1991-92 is estimated at 35,00 and another 8000 TCD

due to expansion of existing sugar mills, raising the total installed TCD 160,000 to 195,000

during 1991-92 season. Total annual sugar production capacity will, therefore, increase from

present level of 2.26 million M.T. to l2.61 million M.T. by the end of season 1991-92. The

question

naturally arises, do we have enough sugarcane to meet the requirements of this installed capacity

plus further increase in sugar mills. This has been dealt separately in subsequent sections.

There are 51 sugar mills operating in the country as an 1990-91, wiht a designed crushing capacity of 160,000 TCD and 2.22 million tonnes of sugar production annually. Out of the 51 sugar mills, 44 mills are in the private sector and 7 in public sector. Public sector mills account for 20,2000 TCD or 12.28 per cent of total processing capacity. The province wise capacity distribution is shown in Table. The capacity distribution, in terms of number of units and their daily cane crushing capacity (TCD) in the three provinces of Pakistan is as under:

Out of the 51 installed sugar mills, 24 are located in the Punjab, 22 in Sindh and 5 in NWFP. There is no sugar mills in Balochistan due to the lack of reasonable basic acreage of sugarcane crop in order to take up the work of establishment of a sugar mills. A special preparatory development plan is required for a breakthrough. Intending sponsors are, however regularly coming and wishing to put up a sugar plant in Jaffarabad/Nasirabad areas under the command of Pat & Kirthar canals.

An average size sugar mill in Pakistan has a crushing capacity of 3000 to 3500 TCD. Out of the 51 sugar mills no less than 24 are in that capacity range and can be categorized as medium scale units as per the present day economy of scale for this industry in Pakistan. There are 12 large scale units in the capacity range of over 4000 to 6000 TCD. Other 15 mills have a capacity less than 3000 TCD, out of which there are two very small/mini plants of 600 and 1200 TCD each.

By 1969 the total annual capacity of sugar production including beet production was raised to 514,050 tonnes but actual production of sugar ws 544,719 tonnes including 23,085 tonnes from beet. However, this level of production was still insufficient for the future requirements because of increasing demand due to urbanization, rising standards of living, and increases in population. Therefore, 15 more sugar mills and one beet plant were added during the period 1971 to 1980, thus increasing the toal production capacity to 966,525 tons. During this period and afterwards production capacity of a number of sugar mills were also expanded to take advantage of economies of scale. A beet plant of 2,150 TSD was added in 1977 at Khazana Sugar Mills, NWFP to make the total slicing capacity of 8650 TSD with sugar production capacity of 38,925 tonnes.

So far the major component of the sugar plants was being imported from a number of European countries and Japan. It was only in early 70's that domestic manufacturing of sugar mills machinery was initiated by Heavy Mechanical Complex in Taxila, with the collarobation of Peoples Republic of China. The first plant so established was at Larkana by PIDC commissioned in 1974-75. Meanwhile Karachi Shipyard & Engineering Works also started supply and manufacturing sugar plants. The first full fledged sugar mill established was Faran in collaboration with FCB France. Earlier KSEW supplied a sugar plant in collaboration with STAR workers, Holland, namely Jaipur Hat, then East Pakistan. In next decade HMC & Karachi Shipyard organized themselves as regular manufacturers of sugar mills plant. Ittefaq in the private sector emerged as an effectively competitive manufacturing concern joining hands to the greater utilization of domestic resources manpower & technology. So we are, by the grace of God self-sufficient except in certain high tech. proprietary items which have to be imported.

Nineteen more sugar plants with a total capacity of 64,200 TCD were established during the decade of 1981-90. In addition to this a second tandem of 1500 TCD was added to an existing sugar mill at Pattoki and also in Habib Sugar Mills Limited, Nawabshah.

After the addition of the above capacities and MBR & Expansion in the capacities during all these years, the domestic crushing capacity stands at 160,000 TCD or 2.22 million tonnes of sugar production annually from sugarcane and 38,000 tons from beet.

Prospects for Season 1991-92

We are entering the season 1991-92 with big hopes but with some fears as well. During the forthcoming season, some six to seven new mills are likely to be commissioned (3 to 4 in the Punjab, 2 in Sindh and one in NWFP), apart from Ansari and Matiari in Sindh coming into full commercial production. Besides, some existing sugar mills are in advanced stages of their expansion programmed.

Total addition of TCD due to new mills during 1991-92 is estimated at 35,000 and another 8000 TCd due to expansion of existing sugar mills, raising the total installed TCD from 160,000 to 195,000 during 1991-92 season. Total annual sugar production capacity will, therefore, increase from present level of 2.26 million M.T. to 2.61 million M.T. by the end of season fo 1991-92. The question naturally arises, do we have enough sugarcane to meet the requirements of this installed capacity plus further increase in sugar mills. This has been dealt separately in subsequent sections.
Installed Capacity of Mills 1989-90
Sr. Year of Present
No. Name of Mills Installation T.C.D.
1. Shahmurad 1981-82 4000
2. Bahawalpur 1982-83 2000
3. Ittefaq 1983-84 6000
4. Army Welfare 1983-84 2200
5. Faran 1983-84 3000
6. Pangriom 1985-86 3500
7. Sindh Abadgar 1985-86 3000
8. Dewan 1987-88 5000
9. Al-Asif 1987-88 3000
10. Sanghar 1987-88 3000
11. Punjab 1988-89 3000
12. Brothers 1989-90 6000
13. Chishtia 1989-90 2500
14. Sakrand 1989-90 3000
15. Phalia 1990-90 3000
16. Matiari 1990-91 3000
17. Ansari 1990-91 3000
 Total: 58,200
Production Trends per Sugar Mills
 (000 Metric Tonnes)
Years NWFP Punjab Sindh Pakistan
1977-78 30 26 33 30
1978-79 21 18 27 20
1979-80 10 12 32 18
1980-81 22 23 31 25
1981-82 30 31 49 37
1982-83 22 23 49 31
1983-84 17 28 36 29
1984-85 17 33 41 34
1985-86 07 18 47 28
1986-87 11 27 43 31
1987-88 32 39 44 43
1988-89 34 32 53 41
1989-90 20 33 47 38
1990-91 19 39 41 37
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Publication:Economic Review
Date:Oct 1, 1991
Words:1121
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