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SUGAR BEET AN ALTERNATE OF SUGARCANE-I.

Byline: _

Sugar Scenario INTRODUCTION- During the year 2013-14 the sugarcane crop of Provinces has grown on an area of 1.173 million hectares (ha) with 664669k ton sugarcane production. The yield per hectare was 56666 kg in that year. The higher production was due to favorable climatic conditions and high prices received by the growers in the previous year. The sugar production in the crushing season was 5.030 million ton which was above the domestic demand of 4.4 million ton said Pakistan Sugar Mills Association.

Table - 1###

###Sugar Sector at a Glance - 2012-13

###(000) ha/ton

###=###1128

###Sugarcane produced###=###63718

###Sugarcane Crushed###

###(With 81% utilization)###=###50089

###Sugar produced from cane###=###5030

###Sugar produced from beet###=###0.033

###Total Sugar Produced###=###5063

###Carryover stocks (Mills and TCP)###=###1394

###Total Availability###=###6457

###No. of Mills###81###

###Crushing Capacity###6.1m ton

###Contribution to Economy###3.0 to 4.0m ton

###Share in GDP###1.9%###

###Employment###1.5m (directly and

###indirectly)

###Total Investment###PKR 100 Billion

###(Approx.)###

###Average Yield per Hectare###46.8 ton or 56666 kg

###per hectare.

###Total Cane Production###45.0 to 55.0m ton

###Cane Available###30 to 43m ton

###Avg recovery of sugar###9.1% (world avg

###10.6%)###

###Per Capita Consumption###25.8 kg###

###Contribution to exchequer###Rs12.16 billion

The higher production of sugar in 2012-13 and carryover stock of the previous year created a glut like situation which kept the ex-mill sugar prices at very depressed levels and could not move out of its lowest ebb during the year of review.

Sugar production is a seasonal activity. The mills at an average operate for 150 days but sugar supplies are made throughout the year.

Sugar Market in PakistanPakistan has a population of over 200 million which includes about 6 million immigrants (3.5 million Afghan refugees 2 million illegal Bangladeshis 1/4 million illegal other nationalities) and all are sweet eater. Sugar is consumed in each and every beverage of Pakistan which includes soft drinks tea cold drinks (sherbets lassi) tea etc. Sugar is also used in sweets bakery products other confectionary items and pharmaceutical industry etc. In short Pakistanis are a sweet tooth nation.

Here the questions arise at what price is sugar would be affordable to the general public at what cost are the sugar millers producing the sugar per Kg what is the international production cost of sugar per Kg and the difference between Pakistan and international level.

Sugarcane and sugar production has been short during the three years 2008-10 to meet the demand; Pakistan became an importer of sugar. Water availability patterns do not suits crops with higher water requirements especially sugarcane. However despite this problem higher prices for sugar forecast convinced the farmers to shift some acreage from competing crops such as cotton and rice to cane.

Margins Obtainable from Competing Crops The major crops cultivated in Pakistan are given in table.

The gross margin of sugarcane ranks above the other crops such as sunflower rice cotton and wheat. However wheat has the lowest profitability although the price is fixed by the government. However wheat covers the largest acreage in the two provinces.

Table-3 indicted that sugar from cane has remained almost stagnant during eleven years 1998- 1999 to 2009-2010 but started increasing since 2010-11.

However sugar production from beets

Table - 2

###Area Production and Yield of Sugarcane

Year###Area###Prroduction###Yield

###(000 Hectare)###% Change###(000 Ton)###% Change (Kg/Hac.) % Change

2009-10###943###-###493773###-###52357###--

2010-11###988###4.8###553009###12.0###55981###6.99

2011-12###1058###7.1###583997###5.6###55196###-1.44

2012-13###1129###6.7###637550###9.2###56466###2.33

2013-14 (P)###1173###3.9###664669###4.3###56666###0.44

Source: Pakistan Bureau of Statistics and Eco-Survey 2013-14

Table - 3

###Sugar Production in Pakistan

###1998-2014

###(Qty: Ton)

Year###Cane sugar###Beet sugar Sugar from Raw###Total

1998-99###3530931###10831###-###3541763

2000-01###2466788###17276###531930###3015994

2008-09###3134145###947###-###3135092

2009-10###3133494###4641###-###3138135

2010-11###4119418###13535###39679###4172726

2011-12###4652164###18216###-###4670380

2012-13###5030129###33028###-###5063158

2013-14

increased from 1998-99 to 2003-04 but started decreasing since 2004-05 but was the lowest in 2009-10. However during the last three years production increased from 13535 thousand ton to 33028 thousand ton 2012-13. Sugarcane price Every year Provincial Governments fixes indicative price of sugarcane before the start of the crushing season. For 2012-13 the sugarcane price was fixed at Rs170 per 40kgs for Punjab and KPK and Rs172/40kg for Sindh up by 36pc over the 2010- 11 when the average sugar price was Rs73.65kg.In 2011-12 the retail sugar price dropped to Rs57.16/ kg and in 2012-13 to Rs53.08/kg. The backward ex-mill price does not match the price announced by the Government. Therefore suggested the Zonal chairman to take up this issue in the sugarcane control board. The estimated area of sugarcane during the crop 2013-14 was to be about 1.13 hectares compared to 1.111m hectares during preceding year i.e. 2012- 13. It is estimated that sugar production from an area of 1.13m hectares would give an approximate production of 64m ton of sugarcane based on 56.4 ton per hectare yield. The sugar production forecasted utilizing 80 to 85pc of sugarcane production with a projected recovery of 9.9pc to be over 5 million ton. The consumption for 2013-14 for a population

Table - 4

Retail Prices of Sugar and Gur 2003-2013

Years###Gur###Sugar

2003-04###19.01###19.79

2008-09###38.72###43.65

2009-10###57.11###70.74

2010-11###72.72###83.86

2011-12###60.99###78.27

2012-13###53.16###73.29

% age###279.64###370.33

Table - 5###

###Sugarcane Indicative Price

###Mill-Gate Delivery (Per 40 Kg)

Year###Punjab###Sindh K.P.K###Q.P

1998-99###35.00###36.00###35.00###0.50

2008-09###80.00###81.00###80.00###0.50

2009-10 100.00###102.00 100.00###0.50

2010-11 125.00###127.00 125.00###0.50

2011-12###150.00###154.00 150.00###0.50

2012-13 170.00###172.00 170.00###0.50

2013-14 170.00###172.00 170.00###0.50

of over 200m is at 24.6 kg per capita is likely to be 4.5m ton. International Sugar Prices The prices have had mixed dynamics during the year. Raw sugar prices hit a three year low in July 2013. Sugar Export PSMA said that it has been consistently trying to convince officials to clear out flow of leftover sugar stock. As a result to arrest the lower trend in the ex- mill price and to enable the sugar mills to pay off the grower's dues the Government has allowed export of 0.9m ton in 2012-13 in addition to 0.3m ton allowed 2011-12. The first trench of 0.1 million ton was allowed through allocation of quota of 5000 ton 0.2 million ton capping the quota at 10000 ton and a committee was constituted under special secretary to Prime

Table - 6

###Mill -Wise Sugar Position from Beet

###Season 2012-13

###Qty: Ton

###Khyber###Days###Beet###Sugar###Rec. %###Mol. Prod.###Rec. %

###Pakhtunkhwa###sliced###Prod.

1###Al-Moiz###58###258963###28461###10.99###9685###3.40

2###Premier###-###47380###4567###9.64###2355###4.97

Total###2012-13###-###306343###33028###10.78###12040###3.93

Total###2011-12###-###176709###18216###10.31###8392###4.75

Table - 7

###Province Wise Sugar Production 2012-13

###(Qty: Ton)

###Cane###Raw###Beet Sugar Prod.###Total###Mol.

###Crushed###Utilized###Sliced###(Cane)###(Raw)###(Beet)###Sugar###C+R+B

Punjab###31980732###-###- 3172408###-###-###3172408###1422807

Sindh###14750048###-###- 1547547###-###-###1547547###663305

K.P.K###3358702###-###306343###310174###-###33028###343202###166639

Total 2012-13###50089482###-###306343###5030129###-###33028###5063157###2252751

Total 2011-12###48248535###-###176709###4652164###-###18216###4670380###2224369

Table - 8

###Import of Refined Sugar 1998-2013

###(Qty: Ton)

###Value: 000 Rs.

###Av. Price:###Rs./Tonne

Year###Quantity###Value###Avg. Price

1998-99###10097###152591###15113

2008-09###125743###4505407###35830

2009-10###370000###14811000###40029

2010-11###1031919###58669007###56854

2011-12###17221###1166825###67756

2012-13###7308###500644###68506

Table - 9

###Sugar Consumption in Pakistan

###(Sugar plus Gur Equivalent)

###(Qty/Mln. Metric Ton)

###Sugar###Population###Sugar###Gur###Total###Sweetener

Year###M/T###MillionConsumption(kg)###Equivalent###Sweetener###kg / capita

2000-01###140.36###3.055###21.77###0.649###3.704###26.39

2008-09###169.94###3.628###21.34###0.789###4.410###25.95

2009-10###173.51###4.186###24.12###0.625###4.810###27.72

2010-11###177.10###4.096###23.12###0.169###4.265###24.08

2011-12###180.71###4.385###24.27###0.240###4.625###25.59

2012-13###184.35###4.420###24.00###0.270###4.690###25.44

Table - 10###

###Estimated Gur Equivalent Production

from Sugarcane Not milled after deduction

###for seed fodder and wastage etc.###

###(Qty/Ton)

Year###Gur Equivalent

1990-91###853800

2008-09###789930

2009-10###625256

2010-11###169150

2011-12###240000

2012-13###270000###

from Sugarcane Not milled after deduction for seed fodder and wastage etc.

Table - 11

Export of Sugar 1998-2013

###Avg. Price Rs/Ton

Year###Quantity###Value###Avg. Price

1998-99###906602###11549170###12739

1999-00###-###-###-

2000-01###-###-###-

2001-02###-###-###-

2002-03###45669###627949###13750

2003-04###116175###1589210###13679

2004-05###54771###1028710###18782

2005-06###61047###1590555###26055

2006-07###12###330###27500

2007-08###260840###5738856###22015

2008-09###23980###639677###26675

2009-10###-###-###-

2010-11###-###-###-

2011-12###48672###2575403###52913

2012-13###1064215###51692066###48573

Minister to negotiate and encourage the sugar mills to utilize the approved quota. Later on due to slow phase of export the quota system was abolished and allowed export on first come first serve basis with timeframe of 90 days. But the export was still at slow phase. The major impediment in the export was the lower trend in the international prices and higher cost of production of the Pakistani sugar due to high cost of raw material and utilities.

To solve this problem and put sugar export on fast track basis the issue was again taken up with Ministry of Commerce (MOC) Finance and FBR. Resultantly the relevant Ministries were convinced with facts provided by the PSMA and thus allowedthrough ECC inland freight subsidy of RS1.75/kg of sugar to be exported across the board on January 10 2013.

The major problem faced by the sugar industry was payment to the growers. PSMA appreciated the incentive of freight subsidy provided by the Government however due to uncompetitive in the international market it alone could not help to enable

Table - 12

###Import of Raw Sugar 1998-2013###(Qty / Ton)

###(Value/000 Rs)

Year###Quantity###Value###Avg. Price

1998-99###548###-###-

1999-00###127###2101###16543

2000-01###525326###8261345###15726

2001-02###500###7172###14344

2002-03###607###-

2003-04###264###-

2004-05###185604###-

2005-06###472039###7794642###16512

2006-07###11033###N.A

2007-08###714###N.A

2008-09###-###-###-

2009-10###-###-###-

2010-11###-###-###-

2011-12###-###-###-

2012-13###-###-###-

the sugar mills to export on fast track basis. Therefore the issue was again taken up with the Government in view of the liquidity problem faced by the mills. The ECC allowed a reduction in the rate of Federal Excise Duty (FED) for sugar mills as an incentive for export of sugar on January 10 2013. With these incentives sugar mills were able to export 1.1 million ton of sugar out of the total approved quantity of 1.2 million ton till last week of August 2013 through registration of contract with State Bank of Pakistan within 90 days. The main reason behind slow phase in physical export was that some exporter have obtained the quota but did not physically shipped in the allocated 90 days time rather the quota was to be renewed at the close of the dead line. PSMA took up this matter with MOC and MOIP that time period for the allocation of quota shall be reduced to 60 days and shall be allocated to other party after the expiry of the given time. The Government did reduce the timing; however it could not be implemented by the SBP due to technical reasons.

The sugarcane crop for 2013-14 was expected to be higher than 2012-13 The sugar mills were still carrying a surplus of more than a million ton in their inventories. The expected production from 2013-14 crop was estimated to be on higher side too which may further expand the volume of the carry over surplus from 2012-13.

Sugarcane is a high delta crop requiring intensive

Table -13

Per Capita Consumptions of Sugar

Year###Sugar per capita

1999-00###23.34

2000-01###21.77

2008-09###21.34

2009-10###24.12

2010-11###23.12

2011-12###24.27

2012-13###24.00

watering (30 times) and occupying land for 10 to 14 months whereas a low delta crop like sugar beet occupies land for only 4 to 5 months and needs watering of 8 to 10 times.

Some farmers are ready to replace sugarcane with sugar beet to save water and maximize land utilization said a cane grower in Khyber Pakhtunkhawa and sugar beet on commercial scale in the same field simultaneously. In the region cane is commercially cultivated on over 100 thousand hectares while beet on 7000 hectares only. At present KP occupies 98 percent of the total sugar beet area contributing 99 percent to the total yield.

Sugar beet is cultivated in Rabi season. October is an ideal month for its sowing. The crop sown in October is ready for harvest in April-May. Experiments have shown that if beet root is farmed alongside sugarcane in September it will provide a

Table - 14

###Export of Fermentation Ethyl Alcohol

###(Not Denatured)

###(Qty /Ton)

###Value: 000 Rs.

###Price/ Rs./Ton

Year###Quantity###Value###Avg. Price

1995-96###1166000###16856###14.45

2008-09###27045396###1209025###44.70

2009-10###101260099###4679269###46.21

2010-11###168509200###9506883###56.00

2011-12###215814894###14234428###65.96

2012-13###142065426###8735649###61.49

Table - 15

###Province-Wise Sugarcane Production in Pakistan

Year###Punjab###Sindh###KPK###Balochistan###Pakistan

###(Area hectares)

1993-94###596.2###265.8###100.3###0.5###962.8

2005-06###625.2###183.2###98.6###0.3###907.3

2006-07###711.8###214.7###101.8###0.5###1028.8

2007-08###827.2###308.8###104.8###0.5###1241.3

2008-09###666.5###263.9###98.2###0.8###1029.4

2009-10###607.4###233.9###100.8###0.7###942.8

Years'Avg:###687.6###240.9###100.8###0.6###1029.9

2010-11###672.2###226.4###88.4###0.6###987.6

###(Production 000 ton)

1993-94###24510.8###15421.0###4470.1###25.1###44427.0

2002-03###33168.6###13797.6###5049.0###40.6###52055.8

2003-04###34023.0###14611.8###4745.6###38.6###53419.0

2004-05###33048.0###9357.4###4816.2###22.5###47244.1

Year Avg:###31756.5###12246.6###4836.5###33.8###48873.4

2005-06###28968.6###11243.4###4439.0###14.5###44665.5

2006-07###37542.0###12529.2###4645.1###25.3###54741.6

2007-08###40306.0###18793.9###4792.0###28.1###63920.0

2008-09###32294.7###13304.3###4408.5###37.9###50045.4

2009-10###31324.0###13505.4###4507.9###35.6###49372.9

Years'Avg:###34087.1###13875.2###4558.5###28.3###52549.1

2010-11###37481.0###13766.4###4030.3###30.8###55308.5

###Sugarcane Yield Per Hectare

Year###Punjab###Sindh###KPK###Balochistan###Pakistan

1993-94###41.1###58.0###44.6###50.2###46.1

2002-03###45.1###53.4###48.1###50.8###47.3

2003-04###48.0###56.2###45.3###48.3###49.7

2004-05###51.3###43.5###45.3###56.3###48.9

Year Avg###47.2###50.5###46.2###51.2###47.9

2005-06###46.3###61.4###45.0###48.3###49.2

2006-07###52.7###58.4###45.6###50.6###53.2

2007-08###48.7###60.9###45.7###56.2###51.5

2008-09###48.5###50.4###44.9###47.4###48.6

2009-10###51.6###57.7###44.7###50.9###52.4

YearAvg###49.6###57.6###45.2###50.5###51.0

2010-11###55.8###60.8###45.6###51.3###56.0

Pakistan is the fifth largest country in the world in terms of area under sugarcane cultivation 11th by production and 60th in yield. Sugarcane is a commercially important crop that accounts for about 65 percent of the global sugar production.

Sugarcane is the primary raw material for the production of sugar. Besides producing white sugar a major component of cane is utilized in the production of Gur" Shakkar" and Khandsari Sugar". Since independence the area under cultivation has increased more rapidly than any other major crop. It is one of the major crops in Pakistan cultivated over an area of around one million hectares.

The sugar industry in Pakistan is the second largest agro based industries comprising 81 sugar mills with annual crushing capacity of over 6.1million ton. Sugrcane farming and sugar manufacturing contribute significantly to the national exchequer in the form of various taxes and levies. Sugar manufacturing and its byproducts have contributed significantly towards the foreign exchange resources through import substitution.

The industry is mostly located in the rural areas of Punjab and Sindh.A small percentage of total production is produced in KPK . Previously Punjab was partly dependent on supply of sugar from Sindh but lately the establishment of some large scale units in Punjab has made the province self sufficient in the commodity.

Acreage of minor crops shrinking in Sindh Production of minor crops in the province has declined by 15 to 20 percent due to insufficient supply of water especially to tail end areas as bulk of water is consumed by major cash crops like rice and sugarcane.

The Sindh Chamber of Agriculture has stressed the need for scientific crop management to ensure equal benefits to farmers of all crops. Sindh chamber joint secretary Nabi Buksh has urged the government to allow sowing of crops in areas which give greater yield due to climate suited to them. Citing an example he said coastal areas like Badin Thatta Tando Mohammad Khan were suitable for sugarcane cultivation for their moist climate and one acre of farm produces about 1000 maund. Contrary to this sugarcane crop sown in dry areas like Jacobabad producing 400 maund per acre only.

He demanded that rice cultivation should be allowed in dry climate areas close to the barrages especially in the Upper Sindh where water is available in abundance. He said that more and more farmers were turning to cultivation of high cash crops like wheat rice cotton and sugarcane and more areas were being brought under cultivation resulting in scarcity of land and water for minority crops such as sunflower onion tomato and chilly.

Giving details of minor crops in Sindh he said that onion is grown on 1.25 million acres of land of which major areas are Mirpurkhas Matiari and Tando Allahyar. The average yield is 50 maund per acre but in Mirpurkhas and Matiari the yield is 100 maund per acre.The second major minority crop in the province is of sunflower which is sown in coastal areas on 700000 acres on average. However after last year's floods its cultivated areas increased to 1.1million acres due to free distribution of seeds among the farmers by some NGOs.

The main cultivation areas for tomato which is another major crop are Badin Matiari Mirpurkhas and Tandoa Allahyar. The total average acreage of the crop is 80000 to 90000 acres. The harvesting of the tomato crop goes on throughout the year as the fruit is ripe in 80 to 90 days.Sugarcane. the sindh chamber of agriculture has stressed the need for scientific crop man- agement to ensure equal ben- efits to farmers of all crops. sindh chamber joint secre- tary nabi buksh has urged the government to allow sowing of crops in areas which give greater yield due to climate suited to them. citing an example he said coastal areas like badin thatta tando mohammad khan were suitable for sugar- cane cultivation for their moist climate and one acre of farm produces about 1000 maund. contrary to this sugarcane crop sown in dry areas like jacobabad gives only 400 maund per acre. hr further said that similar- ly rice cultivation should be allowed in dry climate areas close to the barrages espe- cially in the upper sindh where water is available in abundance. he said that more and more farmers were turning to cultivation of high cash crops like wheat rice cotton and sugarcane and more areas were being brought under cultivation resulting in scarcity of land and water for minority crops such as sunflower onion tomato and chilly. giving details of minor crops in sindh the sindh chamber official said that onion is grown on 1.25 million acres of land of which major areas are mirpurkhas matiari and tando allahyar. the aver- age yield is 50 maund per acre but in mirpurkhas and matiari the yield is 100

Table - 16

###Production of Sugarcane Large Scale Manufacturing

S.No.###Items###Unit###Weight###July-March###% Change###% Point

###(Jul-Mar) Contribution

###2012-13###2013-14###2013-14###(Jul-Mar)

###2013-14

1###Sugar###(000 tonnes)###3.545###4621.873###5124.540###10.88###0.39

Source Eco Survey 2014

bumper harvest and ensure increased sugar production.

Average yield of beet in the country is 29.7 ton per ha which is only one tenth of the world average of 291.8 ton/ha. The beet rots fast hence it needs to be transported to the mills to get processed at the earliest to save it from both yield and quality deterioration. This location of sugar beet mill near the raw material source is critical.

As there is a difference of technology for producing sugar from cane and beet beet technology is required to be installed in mills. However Pakistan Sugar MillsAssociation (PSMA) says that sugar from beet can be obtained with minor extensions in the existing sugar mills.

Some millers have approached the Ministry of Industries to provide incentives for the promotion of sugar production from beet in view of water shortages faced by cane growers.

Major portion of sugar is still obtained from cane while sugar beet can be a viable alternative due to its increased yield per acre and low consumption of water. The tuber of sugar beet plant Beta vulgaris contains high concentration of sucrose.

Most areas of Khyber Pakhtunkhawa and a few areas of Punjab and Sindh are suitable for growing sugar beet. Four varieties of the crop are grown out of which one with higher concentration of sucrose is suitable for commercial production of sugar; other varieties are consumed as vegetable.

Sugar beet has been cultivated in KPK since mid 60s for making sugar. At present there are four mills Charsadda Khazana Premier and Frontier equipped with technology to produce beet sugar. Over a decade ago these mills processed a maximum of 2.26 lakh ton of sliced beet producing 17276 ton of sugar and 8624 ton of molasses.

The data of a sugar mill in KP shows that the cost of sugar made from beet is slightly higer because of shortage of bagasse for beet to heat the boilers. But the cost can be reduced by coal firing system.

A fact finding mission on beet cultivation by Smeda had revealed that the country would not be able to produce sufficient amount of sugar from cane in future if special meas are not taken. It was also indicated that sugar beet can produce almost two times higher sugar yield per hectare with less water and other input resources in a short period as compared to sugarcane that needs a much longer period and more water.

The FAO data show that in 2010 sugar beet was cultivated in Pakistan on an area of 2300 hectares producing 53336 ton. It compared the data with the 58 million ton sugar cane produced on an area over one million hectares in 2011-12.

Sugar Prices in PakistanProvincial governments in 2006-07 increased the official cane purchase price for 40 kilograms to Rs60 for Punjab Rs65 for NWFP and Rs60 for Sindh ($1 = Rs60). However prices were a volatile issue between the growers and processors. The growers refused to sell the cane at the official price and millers in some areas of Punjab and Sindh delayed the start of crushing season. As a result market prices for cane ranged from Rs70 to Rs90.

This situation encouraged farmers to increase productivity and increase in acreage. During this period price of 50 Kg sugar bag fluctuated between Rs1593 to Rs1655. The table shows the price of a 50 Kg bag in the four major cities of Pakistan in 1999 to 2012-13. The sugarcane prices paid to the farmers have shown an annual growth rate of 20pc from 1998. The sugarcane prices are mostly dependant on the white sugar prices but during the last few years when there was a shortage of cane the mills raised their cane purchase prices due to competition.

Sugar millers claimed that in April 2007 production price was Rs32/kg while in May 2007; sugar was being sold at Rs30/kg. This means that sugar industry production processes must be upgraded; and production cost should be lowered by usage of steam along with the need of weighing and saving of bagasse. The bagasse saved can be used for future years as a fuel for the boilers working on the sugar beet processing.

It is demanded by the farmers that a comprehensive long term policy for sugar industry to be developed to bring stability in the sugar industry. For solution the problems in which farmers are given regular contracts from sugar mills on fixed bottom line prices farmers are paid promptly by the industry on delivery of sugarcane. That sugar cane is priced not by its weight but by its sugar content percentage. There should be a minimum price for certain fixed sugar contents and above that farmers should receive a premium price.

The government has initiated a pilot project to enhance sugar production by promoting sugar beet cultivation in order to make a shift from high delta sugarcane crop to low delta sugar beet crop. officials said this decision has been taken by

Table - 17

###Beet Sugar Position KPK Sugar Mills 1998-2013

###(Qty/Tonnes)

###Rec: Percent

Year###Mills###Beet Sliced###Sugar made###Rec.###Molasses

1998-99###03###126123###10831###8.59###5069

2008-09###01###9301###947###10.55###419

2009-10###02###53336###4641###9.15###2140

2010-11###02###151265###13535###8.95###7027

2011-12###02###176709###18216###10.31###8392

2012-13###02###306341###33028###10.78###12040

###- 11 -

Table - 18

###Average Retail Prices of Sugar

###In Different Cities

###Sugar Refined

###2001-02###2002-03###2003-04###2004-05###2005-06###2006-7###2007-08###2008-09###2009-10

KHI###22.95###20.87###19.23###23.27###30.57###31.67###27.99###38.63###57.14

LHR###23.00###20.92###19.32###23.38###31.57###32.58###28.45###39.04###55.67

Sialkot###23.08###21.17###19.42###23.83###32.10###32.71###28.42###39.03###56.35

R pined###23.54###21.48###19.52###23.94###31.76###33.20###29.44###40.18###57.03

Peshawar###23.13###20.97###19.20###23.55###31.30###32.17###28.58###39.84###57.50

Quetta###22.44###20.48###18.79###23.26###30.96###31.82###27.77###38.34###58.00

Islamabad###23.95###21.86###20.06###24.33###32.27###33.90###30.34###41.08###58.33

In Different Cities Sugar Refined the government in view of shortage of water the cultivation of sugar beet is more beneficial as compare to sugarcane in the prevailing dry weather conditions to meet sugar requirements of the country. Sugar beet require less water for irrigation and it need 5 to 6 time irrigations as compare to sugarcane which require 24 to 30 time irrigation.

Being High delta crop the 70pc crop is cultivated in Sindh in autumn and occupies the lands from 12 to 14 months whereas Sugar beet being low delta crop takes 4 to 5 month to grow and give production.

Moreover the average recovery of sugar beet is much higher than the sugarcane because average recovery of sugar beet is (+12) whereas average recovery of sugarcane is (-18). Sugarcane can also be inter cropped in sugar beet and sugar beet could also accommodate another kharif crop which is otherwise difficult in case of sugarcane.

Experiments were conducted in National Agriculture Research Institute Thatta Sugarcane Research Station Sajawal Sugarcane seed multiplication Farm at SindhAbadghar sugar mill and Fuji Foundation sugar mill.

The analysis indicated that extractable recovery of sugar beet varieties adopted to Sindh environment stands on average at + 12 inspire of late sowing as well as shortage of water.

The samples have been tested at Sindh Abad gar Sugar mill and at Sugar Crops Research Institute Mardan for scientific analysis keeping in view the size of beet the type of variety suited to Sindh environment and the time of harvest.

The seed for these experiments were arranged from the sugar crops Research Institute Mardan free of cost. Beet root crop needs only one third of the water required to grow sugarcane and can be promoted to benefit the country and make it self sufficient in sugar production at stable prices.

Beet root research farms at Adda Pannu have been set up to study beet root as a feasible alternative and encouraging results have been obtained.

If beet root is farmed alongside sugarcane in September it will provide a bumper harvest and ensure increased sugar production in the country.

The sugar mill owners of the province are required to turn to making sugar from beet root to invest in the requisite equipment and share in the progress and prosperity that beet root harvesting can bring to this sector.

In view of the continued and increasing water scarcity in the country the government is now keen to introduce this crop in the coastal areas of Sindh and parts of Punjab. A project to introduce sugar beet cultivation in new areas has been included under the agriculture sector in the 10 year perspective plan (2001-11) of the government. Rs100 million were proposed to be spent in four years beginning 2002- 03 on this project.

Realizing importance of sugar beet in current situation of water scarcity and as an alternate crop in this part of the country brief information about the botanical and agronomic aspects of the crop is being presented here.

It was recommended that the sugar industry should be given access to improve process technology generation where through the help of experts they can improve on their plants and processes to drop the cost of producing sugar per ton. This will also require improvement in the sugarcane crop being cultivated and Investment in research for better sugar yielding varieties of sugarcane crop. The large scale improvement in the yield of sugarcane crop with better sugar recoveries will be a right step to improve efficiency of the sugar mills.

Assessment of Sugar Mills in Pakistan Many sugar mills were established in between 1970 to 1980. The cane growing also increased and due to increase in mills capacities of older mills expanded. This trend was continued but at slower pace. The reason was that all mills are nearly similar in production system. In the last years the technology in the refinery shifted from double carbonation to Telo Floc technology. Also some new continuous pans and modern batch type centrifugals were installed especially as the capacity was enhanced. The steam consumption about 50 to 60pc on cane is always high. Bagasse as a fuel is always available and cheap so there is no pressure to save heating energy.

As the maintenance of equipment is not efficient thus there are several shut downs during the crushing season. Another important point of having not a good efficiency is due to irregular delivery of cane at the factories. Sometimes the mills have to be shut down because of lack of cane and after several days start again. There is much less cane and also the logistic issue of cane transport is also not good enough. So the smooth run of the sugar mills is not possible. Due to this policy not only surplus but recovery also decreased.

Pakistan Trying to Replace Sugarcane with Sugar Beet Pakistan is striving hard to replace sugarcane crop with sugar beet to increase per acre production save water and maximize land utilisation said Agriculture Development Commissioner (ADC) Anyatullah Khan. He said Pakistan needs to increase sugar production from sugar beet due to wake of serious water shortages in the country. While the entire country is suitable for the cultivation of sugar beet by replacing sugarcane the climatic conditions of lower Sindh and some parts of Punjab are particularly favourable to the crop conditions similar to Nile delta valley of Egypt where commercial sugar beet production has been successful for many years he said.

During the recent devastating floods the sugarcane farmers had suffered a loss of Rs40 billion and its production is expected to decline to 49 million ton against the targeted production of 55 million ton which would be sufficient for domestic requkrement.

Sugar beet contributes about 20 percent of the world sugar production with sugarcane contributing 80 percent. In Pakistan sugar beet has been cultivated in the Khyber Pakhtunkhwa (KPK) for sugar production since the mid sixties.

He said that all the other Kharif crops are not replaceable but sugarcane could easily be replaced with sugar beet which would help maximisation of land use and consumes less water compared to sugarcane. One sugarcane crop needs water 30 times while sugar beet crop needs water only 8 times.

Sugarcane price is a provincial subject and in the current season Punjab has fixed sugarcane price at Rs125 per 40 kg while Sindh has not yet announced sugarcane price. A sugar mill was established in district Dera Ismail Khan two years back producing sugar from sugar beet with a capacity to produce 10000 ton sugar annually he said.

He said that the Ministry recommended new hybrid sugar beet seeds so that per acre production could be increased. Per hectare sugarcane output is about 500 maunds while sugar beet per hectare output is 600 maund Anyatullah added. The sucrose level in sugar beet is about 11 percent compared to 9 percent in sugarcane.

The government would provide incentives to farmers of sugar beet for the promotion of sugar production from sugar beet in wake of declining sugarcane production in the country and water shortages faced by the cane growers.

According to the official figures Pakistan was to face 1.2 million ton of sugar shortage in 2010 and the gap was to be filled through imports. The sugarcane production in Kharif season was 47.22 million ton compared to 50 million ton last year.

The cane cultivation area declined from 1.02 million hectares last year to 949000 hectares in Kharif 2009-10. He said that the existing sugar mill industry could easily be transferred to produce sugar from sugar beet with minor extensions in the existing sugar mills.

A study was planned to determine the effect of different sowing dates and plant spacing on the yield and other quality trains of Sugar beet in ecological zones of Punjab under present irrigates conditions.

The government should encourage farmers to first sow beet on trial basis by offering them free farm inputs and crop insurance to build their confidence in the crop Anyatullah Khan said.

Plant spacing (plant population) also influences plant size root weight sugar content and yield (113) Al Subaibani (1) studies the effects of four hill spacing i.e. 152535 and 45 cm with 70 cm between ridges. He found that root yield and sugar yield increasing spacing from 15 to 45 cm Hassanin (8) recorded the highest root weight and sugar yield with 20 cm

Table-19 shows the values of NPC of sugarcane production for both import substitution and export promotion regimes. The NPC values for import substitution for all major farming regions were less than one (0.82 to 0.86) in 2004-05 and (0.79 to 0.89) in 2008-09 which implies that cane producers received prices less than world reference prices. By comparing among the regions farmers of the Punjab province received less than others regions in 2004- 05 while Punjab and Sindh in 2008-09 were at par with each other. Under export promotion regime the picture is opposite of import substitution regime the NPC values were above unity ranges (1.22 to 1.28) in 2004-05 and (1.04 to 1.18) in 2008-09 indicating that the farmers received prices more than world reference prices due to subsidies provided to the growers of sugarcane by the government.

Table-20 summarizes the results of PSE for import substitution and export promotion for the years 2004-05 and 2008-09. The results show that PSE values under import substitution regime were negative indicating that the overall transfers have taken place from cane producers to society and tax payers in 2004-05 and also in 2008-09.

These values further show the extent of taxation of sugarcane production that were 22 percent in both harvesting years for Punjab (14 and 26 percent) for Sindh (17 and 6 percent) for Khyber Pakhtunkhwa and (20 and 21 percent) for overall Pakistan in 2004- 05 and 2008-09. Positive values of PSE under export promotion regime means that the overall transfers were from society and taxpayers to sugarcane growers. The government positive support were to the extent of (20 to 10 percent) for Pakistan as a whole (18 to 10 percent) for Punjab (25 to 6 percent) for Sindh province and (21 to 22 percent) for Khyber Pakhtunkhwa in 2004-05 and 2008-09.

Subsidy Ratio to producer (SRP)

Subsidy Ratio to Producers (SRP) shows the proportion of revenues in world prices that would be required if a single subsidy or tax were substituted for the entire set of commodity and macroeconomic policies.

The SRP facilities comparisons of the extent to which all policy subsidizes agricultural systems. The SRP measure can also be disaggregated into component transfers to show separately the effects

Table - 19

(Nominal protection coefficient (NPC) of Sugarcane (2004-05 and 2008-09)

###Country/ProvinceImport Substitution regimeExport Promotion regime

###2004-05###2008-09###2004-05###2008-09

Pakistan###0.83###0.79###1.23###1.05

Punjab###0.82###0.78###1.22###1.04

Sindh###0.83###0.78###1.24###s1.04

Khyber Pakhtunkhwa###0.86###0.89###1.28###1.18

Table - 20

(Producer Subsidy Equivalent (PSE) of Sugarcane (2004-05 and 2008-09)

###Country/ProvinceImport Substitution regimeExport Promotion regime

###2004-05###2008-09###2004-05###2008-09

Pakistan###-0.20###-0.21###0.20###0.10

Punjab###-0.22###-0.22###0.18###0.10

Sindh###-0.14###-0.26###0.25###0.06

Khyber Pakhtunkhwa###-0.17###-0.06###0.21###0.22

maund per acre.the second major minority crop in the province is of sunflower which is sown in coastal areas on 700000 acres on average. however after last year's floods its cultivated areas increased to 1.1million acres due to free distribution of seeds among the farmers by some ngos. the main cultivation areas for tomato which is another major crop are badin matiari mirpurkhas and tandoa allahyar. the total average acreage of the crop is 80000 to 90000 acres. the harvesting of the tomato crop goes on throughout the year as the fruit is ripe in 80 to 90 days
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Publication:PIAR Report
Geographic Code:9PAKI
Date:Aug 15, 2014
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Previous Article:BUDGET 2014-15 - II.
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