Muhammad Luqman

As sugarcane crushing in Punjab gathers momentum, the rapidly declining temperatures have helped increase the sugar content of the crop, particularly in the southern districts of the province. Sugarcane has been cultivated on over two million acres in Punjab this year and is expected to yield around 60 million tons of cane, producing approximately 4.8 million tons of sugar.

“The night temperatures across most of the Punjab plains have dropped to single digits — around 8 to 9 degrees Celsius. As a result, sugar recovery has reached 10 percent in southern Punjab, auguring well for the sugar industry,” said Dr Kashif Munir, Director of the Sugarcane Research Institute, Faisalabad.

Talking to Wealth Pakistan, he said the sugar content in central Punjab is also improving with the passage of time and has reached around 9 percent in most districts. “With sugar recovery at 9 percent, crushing becomes much more viable for millers, while sugar supplies in the market increase, which is also a boon for consumers,” he added.

Dr Munir noted that the sugar recovery figures provided by the sugar mills are often lower than the actual recovery. He expressed hope that further declines in both night and day temperatures would continue to improve the sugar content levels.

According to the data recently released by the Punjab Cane Commissioner’s Office, more than six million tons of sugarcane had been crushed by 41 sugar mills up to December 9, producing 504,643 tons of sugar. The average sugar recovery was higher in Bahawalpur and Dera Ghazi Khan divisions compared to central Punjab.

With increased sugar supplies entering the market, the ex-mill and wholesale prices have declined significantly in Lahore and other parts of the province. “The ex-mill price of sugar now stands at Rs14,800 per 100 kilograms, or Rs148 per kg, while the wholesale price has come down to Rs152 per kg,” said wholesale sugar dealer Hafiz Zeeshan Ghafoori.

Talking to Wealth Pakistan, he said the retail prices in Lahore currently range between Rs160 and Rs170 per kg. He expressed hope that the retail market prices would drop to Rs150 per kg within a fortnight. Despite the encouraging situation in the sugar sector, the farming community remains dissatisfied. Growers complain that the sugar millers are offering lower returns or making deductions under the pretext of poor cane quality.

“Millers are purchasing sugarcane at rates ranging from Rs375 to Rs400 per 40 kg, which is significantly lower than the last year’s prices,” said Khalid Hussain Baath, President of Pakistan Kissan Ittehad. Talking to Wealth Pakistan, he pointed out that sugar was selling at Rs132 per kg last year, while the current market prices are Rs170 per kg or higher.

“Despite the rise in sugar prices, growers are receiving lower returns for their produce,” he lamented. He added that the mills are deducting an average of Rs100 per 40 kgs of sugarcane, citing low quality. “The Punjab government should intervene to ensure that growers receive a fair price for their crop,” Baath urged.

Credit: INP-WealthPk