Pakistan is likely to a face sugar price crisis if the government allows more sugar exports. Pakistan’s sugar millers are favouring an enhancement of sugar export quota to 1m ton in the name of earning foreign exchange and making payments to farmers. Sugar mills are mostly owned by the country’s political elite who have lured farmers into growing sugar cane beyond the local demand at the cost of cotton farming.
Agri experts have warned against the negative repercussions of increasing sugarcane farming, especially because this is likely to affect cotton yield, ultimately affecting our total exports, given how textiles constitute a considerable proportion of our export profile.
Pakistan’s sugarcane growers have been complaining about delayed payment of their dues and this situation worsens during the crushing season for a number of reasons. According to the farmers, the millers delay the crushing; resulting in weight loss of the cane that ultimately benefits the millers. This results in hefty net losses for the farmers, who do not yield a fair price for their harvest.
The millers claim savings of around $3b in terms of sugar imports, in case all sugar mills stop production. If more sugarcane continues to be cultivated compared to cotton, the country will have to spend a much higher amount.
In addition, the millers have the potential of producing 2,000MW to 3,000MW of electricity from bagasse, but they are only generating about 145.10MW for the national grid.
