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ANNUAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2000
Introduction
It is my pleasure and privilege to present annual report of the Pakistan Sugar Mills
Association-Sindh Zone, on behalf of the zonal executive committee and the general body,
for the year 1999-2000.
During the year, membership strength of the Pakistan Sugar Mills Association-Sindh Zone
stayed put at 24 out of 32 sugar mills strength in Sindh province, of which 25 were
functional, five out of action and two in the installation phase. Each operational unit
must get in the fold of fraternity and join in efforts to ensure a sustainable economic
future for the national sugar industry. It is all the more important for the province of
Sindh, in which sugar industry has catalyst's role to play in economic growth and
contribute in social uplift, specially of the rural landmass, which tends to be the
locational imperative for the sugar industry.
The review year, discussed later at greater length, turned exceptionally difficult. As its
backlash, the PSMA-SZ fears that its existing membership strength may not fortify. It
would invariably become a cause for concern. Hopefully, the adverse situation would be
short lived and the sugar industry would soon get a shot in its arm, for early revival.
This being a fair assessment, the sugar mills, though presently under stress, would bear
it for a sure steer out to safe shores. Patience, perseverance and united efforts are key
features for leaving vicissitudes behind. The sugar industry is destined to play its
pivotal role in energising the overall economic structure, by contributing more
significantly in the gross domestic product, in import reduction, in enhancing export
earnings and transforming rural Pakistan into modern economic hub.
The present membership consisting of 24 units leaves 25% of the numerical strength out of
fold. This represents flaw in regulatory structure. Membership of the industrial
association needs to be slated compulsory for all the functional units of its respective
subsector rather to leave it optional. It is a norm for industrial structures in several
countries. Strangely, it has not been brought to statute book in Pakistan. The lacuna
yielding advantage to non-members of the efforts of the association becomes incentive to
stay away. This should end. It is unfair that those staying out of the fraternityfold,
share equal benefits without monetary contribution, of the relentless efforts by the PSMA
in betterment of the sugar industry.
The ministry of commerce may address this long neglected issue afresh and make membership
of industrial associations a must atleast for all the operational units. This will
facilitate interaction and promote coordination at full strength and stretch. It is
imperative for greater good on wider national spectrum.
The PSMA, once again, invites all the sugar mills, specially the functional ones, to
refrain from resistance in joining the PSMA and undermining its unity.
Likewise, managements of the closed units are called upon to mobilise resources for
reactivating the capacity remaining idle. In this regard, any assistance needed from the
PSMA would be forthcoming instantaneously. At PSMA, it is seen as an obligation to extend
its helping hand to the sugar mills and work for serving and safeguarding their mutual
interests.
Sugarcane crop situation
Based on happy tidings of the preceding two years in succession and promising initial
indicators of area under sugarcane reported officially at 1,015 thousand hectares in the
country, all the stakeholders were upbeat about sugarcane crop quantum for the review
year. The sugar industry, however, preferred candid conservatism to project sugar
production initially below three million tons.
A high tide in sugarcane crop was indicated by the sugarcane growers, as evident by their
persistent demand of commencing the sugarcane crushing campaign by early October in Sindh
and early November in the Punjab and NWF provinces. Sugar industry's counsel to wait and
see, so that proper estimates were drawn for fair assessment of sugarcane crushing volume
to be available, was given no heed.
Shortly, it was found that the quality of sugarcane was not upto the mark. Draught
affected the yields, which fell on sliding scale. This became evident, as the season
progressed. Sugarcane supply also trailed far behind the inflows to be had in normal
season. Intermittent supplies and resultant interruptions were root cause of increased
cost of sugar production.
Sugarcane production claimed at 46.697 million tons was actually no where near about it.
This is clearly evident from sugarcane crushing on national scale at 29 million tons.
Sugarcane utilisation by the sugar industry at 62.07% was one of the lowest. Sugar
production faltered to 2.4 million tons. Similar to sugarcane crop, sugar output was also
one of the lowest. The dictum of sugar is grown in the farms and processed in the
factories was in clear evidence.
Sugarcane area, production, yield.
Season: 1999-2000 (1999-99)
Area Hectare |
Production Tons |
Yield h/t |
|
| Sindh | 230,561 |
14,290,793 |
61.98 |
(270,800) |
(17,050,700) |
(62.96) |
|
| Decline % | -14.86 |
-16.181 |
-1.56 |
| Punjab | 680,162 |
27,641,780 |
40.64 |
(780,300) |
(33,382,800) |
(42.78) |
|
| Decline % | - 12.83 |
17.20 |
-5.00 |
| NWFP | 104,050 |
4,753,000 |
45.68 |
(103,300) |
(4,719,500) |
(45.69) |
|
| Growth % | 0.73 |
0.71 |
0.02 |
| Balochistan | 300 |
11,100 |
37.00 |
(700) |
(38,100) |
(54.43) |
|
| Decline % | -57.14 |
-70.87 |
-32.02 |
| Pakistan | 1,015,073 |
46,696,673 |
46.00 |
(1,155,100) |
(55,191,100) |
(47.78) |
|
| Decline % | -12.12 |
-15.39 |
-3.73 |
Source: Federal Bureau of Statistics.
In the three provinces, area under the sugarcane crop, its yield and, therefore,
production were all down. Area dropped by 12.12% and in each zone it shrunk except NWFP.
Sugarcane production plummeted by 15.39%. Yield declined by 3.73%. No scope for recoup
from sharp decline in the crop and, therefore, improvement in processed sugar could not be
take place. This ominous feature underlines once again acute need for development of new
sugarcane varieties, to bring sugarcane production and sugar processing economies on even
keel.
Area under sugarcane crop dropped by 100 thousand hectares in the Punjab and 40 thousand
hectares in Sindh. However, there was an increase of 750 hectares in NWF province. On
national level, area fell flat by hefty at 140 thousand hectares. Sugarcane production
fell short by 5.741 million tons in the Punjab, 2.760 million tons in Sindh but it
increased 33 thousand tons in NWFP. Aggregate decline on the national level in sugarcane
production was a whopping 8.494 million tons. Aggregate yield per hectare declined by five
percent in the Punjab and 1.56% in Sindh. On the national level, it beat a retreat by
3.73%. Sugarcane made available to the industry for crushing got lower by 14.012 million
tons, i.e. down by 32.59%. This emerged much beyond the normal difference to be and,
therefore, deserved to be looked into on priority basis on national level. Sugarcane
scenario of its supplies to each zone and sugar production with average recovery emerged
as on the next page.
Operational features
Zonal sugar production , season: 1999-2000 (1998-99)
No. of Operative Mills |
Sugarcane Crushed Tons |
Share % |
Sugar Production Tons |
Share % |
Recovery % |
|
| Sindh | 25 |
10,856,757 |
37.46 |
996,317 |
41.26 |
9.18 |
(29) |
(15,095,412) |
(35.11) |
(1,353,013) |
(38.73) |
(8.96) |
|
| Growth % | - 28.08 |
- 26.36 |
2.46 |
|||
| Punjab | 37 |
16,829,610 |
58.07 |
1,315,637 |
54.48 |
7.82 |
(37) |
(26,081,066) |
(60.66) |
(2,033,356) |
(57.59) |
(7.80) |
|
| Growth % | -35.47 |
-35.30 |
0.26 |
|||
| NWFP | 05 |
1,296,344 |
4.47 |
102,792 |
4.26 |
7.93 |
(05) |
(1,818,433) |
(4.23) |
(144,563) |
(4.09) |
(7.95) |
|
| Growth % | -28.71 |
-28.89 |
-0.25 |
|||
| Pakistan | 67 |
28,982,711 |
100 |
2,414,746 |
100 |
8.33 |
(73) |
(42,994,911) |
100 |
(3,530,932) |
100 |
(8.21) |
|
| Growth % | -32.59 |
-31.61 |
1.46 |
Sugarcane crushing fell markedly short in each zone. It was no exception. In Sindh crop
volume crushed suffered a retreat by 26.36%, in NWF zone by 28.89% while in the Punjab it
stretched to 35.30%. On national level decline in sugarcane crushing by 32.59% was immense
indeed. Average sugar recovery in the NWFP zone diminished by 0.25%. In marked contrast it
increased by 0.26% in the Punjab and by 2.46% in Sindh. Nonetheless sugar production was
lower in all the zones, by 26.36% in Sindh, by 28.89% in NWFP and by 35.30% in the Punjab
zones. On national level, sugar production at 2.415 (3.531) million tons fell 31.61%
behind, despite average recovery was 1.46% more at 8.33 (8.21)%.
A nominal improvement in recovery could not make material change in the national sugar
supplies. Eventually, 1.116 million tons hefty decline in sugar production meant a
shortfall of about 585 thousand tons in meeting the national demand estimated at three
million tons.
Sindh zone was the worst sufferer of the odd situation shaped in the form of short
sugarcane crop. This compelled four sugar mills seizing their operations during the review
year. The number of operational units reduced to 25 (29) in Sindh. Two units each of the
public and private sectors respectively fell out of operations. They were: Larkana Sugar
Mills, Dadu Sugar Mills, Kiran Sugar Mills Limited and Tharparkar Sugar Mills Limited.
Ecologically the most suited zone of Sindh for sugarcane cultivation was found the most
adversely affected during 1999-2000 season. This indicates the magnitude of adversity
faced by the sugar industry in general and of the Sindh zone in particular.
On the national level, numerical strength of the functional units reduced to 67 (73). This
unwarranted increase in idle capacity of the national sugar industry deserves to be
lamented and must compell all concerned to take timely serious note in evolving steps to
rectify the odd situation. Revival of the industrial units, once falling victim of adverse
factors, becomes more difficult than to extend help by rescue measures to the units
operational in odd circumstances. Timely action can avert more adverse tides and
proverbial sinking of the ship.
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