The Problems of Pakistan Sugar Industry and its Impact on Sugar Trade

Abstract

This study is a requirement for the final project of (M.B.A). The purpose of this study is to find out the problems of Pakistan Sugar Industry and its impact on Sugar trade”. It does not go deep into findings about each and every unit of the industry; rather it is a study that presents the big picture about the sugar industry. This study is not an end by itself, but rather it acts as a stepping-stone, after which further studies can be done based on this study. Everyone interested to invest in the sugar business, and officials of the Pakistan Sugar Mills Association and govt. concerned authorities would find this thesis useful and authentic as I have developed this thesis to my full ability. The sugar industry has the potential and can play a pivotal role in the growth of Pakistan’s economy, but is failed to do so because of continued neglect and the absence of a coherent policy covering the interests of all stakeholders — the growers of sugarcane, the mill owners and the ultimate consumers. It provide jobs to more than 100,000 people including skilled, mini-skilled and unskilled people. This year the industry is faced with the same crises in a much more serious form. Seventy one sugar mills in the country have over a million tonnes of unsold stock in their god owns. Financially weaker establishment have withheld payment of the grower. Some of them have started selling at low prices undercutting others resulting to a price crash brining down selling prices of sugar from Rs. 25/26 per kg. to Rs. 17/18. This scenario is threatening the future of sugar industry in the country. This study focuses on “what problems the industry is facing, and what does its impact on sugar trade, because in past this industry was totally neglect due to continued neglect and the absence of a coherent policy.