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Significance of sugar industry in national economy.

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Significance of sugar industry in national economy

Sugarcane constitutes as one among 13 major crops being cultivated in Pakistan. It is third largest in terms of area under the different crops. It is one of the major cash crops. Likewise, sugar industry belongs distinctly to 12 large-scale industries by now well established in Pakistan. It is the second largest after cotton textile within the large-scale agro-based manufacturing sub-sector in Pakistan. This explains at a glance the position of definite prominence carved by the sugar industry in the economic milieu of Pakistan. A more elaborate exposition follows.

Sugar cane has been recognized as an important industrial crop. Area at 1,074 thousand hectare under sugarcane during 2003-04 consuetude 4.92 percent of the aggregate cropped area commanded at 21.85 million hectares in Pakistan. Sugarcane production at 53.419 million tons in 2003-04 fetched value of above Rs.55 billion at notified support price by the government. Actual of it will be markedly more as sugarcane has not been available at support price. Flow of this amount to rural Pakistan from sugarcane crop alone underlines significant this crop holds. Value addition of sugarcane among major crops at constant factor cost has been 13 percent in 2003-04, making it the fourth highest in time series of the past 10 years.

During the 2003-04 season, of the total 78 sugar existing in Pakistan 71 sugar mills were operational. They processed 43,468 million tons of sugarcane and produced 3.997 million tons of cane sugar at an average national recovery of 9.19 percnet. For sugarcane plus (all other) incidental expenses about Rs. 47.815 billion were paid by the sugar mills to the growers and haulers. Sugar worth about Rs. 75 billion was rolled out by the sugar industry. Value addition by the sugar industry during 2003-04 Rs.28 billion.

Sugar industry directly provides employment to over 47,000 workers. Generation of indirect employment far exceed it. In aggregate employment by sugar industry is generated for more than one million persons. By is locational feature of rural deep landmass, several self-sustaining service areas have been opened up. No other industry can become a fountain socio-economic upswing as the sugar industry happens to be in the rural sector. It is considered as engine of rural development and socio-economic upsurge.

InPakistan, sugar is perceptibly produced from sugarcane crushing. A small volume of sugar is derived...