The global consumption of sugar is projected to reach approximately 178.79 million metric tons in the 2024/25 season. This substantial demand highlights the potential for new entrants like Pakistan, in the international sugar market, particularly for those offering high-quality products.
In Pakistan, sugar exports were banned a few years ago due to a domestic scarcity that drove prices to unaffordable levels for the lower and middle classes. This led the government to halt sugar production temporarily to stabilize the local market.
Recently, the government has decided to lift the ban, believing that the country now has a surplus of sugar. The initial proposal permits the export of 250,000 metric tons of sugar, a figure considerably lower than the one million tons requested by the Pakistan Sugar Mills Association (PSMA). However, official data indicates that with an average monthly domestic consumption of 0.572 million metric tons, the current stock is sufficient to meet local demand for about eight months, until December 2024.
Given this context, the question arises: can Pakistan produce enough sugar for export without jeopardizing domestic supply? Here are some solutions from Khaity that could transform the situation completely. Keep reading to find out how!
Examining the Challenges in Pakistan’s Sugar Value Chain
The sugarcane value chain includes planting, harvesting, transporting, milling, refining, packaging, and distribution. It starts with land preparation, planting, fertilizing, irrigating, and controlling weeds and pests. Once mature, sugarcane is harvested and taken to the mill for processing. The processing stages include cleaning, crushing, clarifying, evaporating, crystallizing, separating molasses, refining, and packaging.
The primary challenge in Pakistan’s agricultural system lies in the processing stage of sugar production. Even minor delays can result in significant losses. Small-scale farmers face additional hurdles as they must arrange transportation to deliver their sugarcane to the mills, incurring extra costs. Furthermore, sugar mills operate on a “first come, first served” basis, meaning that those who arrive late, despite having high-quality sugarcane, face adverse consequences. These factors discourage farmers, especially small-scale ones, from cultivating sugarcane due to the high costs, risks of damage, and potential for their crops to dry up before processing.
Previously, many farmers relied on traditional methods for sowing and harvesting sugarcane, leading to low production levels. As a result, we struggled to meet the country’s sugar needs adequately. Additionally, farmers lacked access to modern technologies such as GIS mapping, crop analysis, and satellite monitoring. These challenges hindered their ability to achieve the high production levels necessary to satisfy domestic demand and generate surplus for export.
How Are We Solving This Issue?
Given the government’s decision and the challenges faced by small-scale farmers, Khaity has devised a solution to reduce the burden on farmers. Khaity proposes that farmers focus solely on their core tasks, from land preparation to harvesting. After harvesting, Khaity will take full responsibility for transporting the produce to the sugar mills for processing. This approach eliminates transportation costs for farmers and ensures they receive full payment for their sugarcane without deductions. Moreover, Khaity’s adherence to strict transportation protocols mitigates the risk of drying up or other damage, providing a reliable and secure supply chain for the farmer’s crops.
Furthermore, Khaity Technologies, in collaboration with Ashraf Sugar Mills, executed a transformative three-month project to develop a comprehensive database of sugarcane growers in Punjab and Sindh, Pakistan. This initiative centralized essential data on growers, their cultivation practices, and geographical distribution, utilizing advanced data collection and technology-driven solutions such as GIS mapping, detailed crop analysis, and operational systems to optimize land use. This database enabled Ashraf Sugar Mills to streamline their supply chain, enhance procurement, and strengthen farmer connections.
Khaity’s initiatives encouraged farmers, especially small-scale ones, to maximize sugarcane production by reducing transportation burdens and ensuring full payment without deductions. This motivates farmers to increase production, generating surplus sugar to meet Pakistan’s monthly domestic demand of approximately 0.572 million metric tons and creating an export surplus. As a result, local sugar prices remain stable, benefiting both farmers and consumers. We also exemplify the power of data-driven insights and innovative technology in boosting efficiency and productivity. Overall, these initiatives positioned Pakistan to effectively participate in the international sugar export market, enhancing the country’s economic prospects.
It’s high time to take steps to promote Pakistan’s sugar industry and other agro-commodities, as they hold significant potential for boosting the nation’s economic growth. The primary goal of initiatives by Khaity is to support farmers comprehensively, encouraging them to maximize production for both domestic use and export. With the right policies and procedures, Pakistan’s sugarcane sector can substantially enhance the economy and create millions of jobs. By entering the international market with high-quality produce, we can ensure sustainable economic development and prosperity for the country.
