Right decisions greatly help the beleaguered sugar industry

•  Climate-hit farmers are in dire need of support

Interview with Mr. Riaz Javed Suleri — Resident Director, Faran Sugar Mills Limited

PAGE: Tell me something about yourself, please.

Riaz Javed Suleri: I have been associated with the sugar industry since 1983. Firstly, in the public sector and for the last two decades in the private sector. At present, I am working as Resident Director at Faran Sugar Mills, which is a progressive organization with special emphases on technological development at the project as well as in the field.

Capacity enhancement from 5,500 tons per day crushing capacity to 10,500 TCD with the addition of the latest equipment and automation are a few main examples to quote.

Sugarcane development is the backbone of the sugar industry. We at Faran, presently indulge in development activities with the active participation of growers of the area, which ultimately consequence an increase in yield per hectare to the tune of 75%. This was possible because of consistent efforts, in coordination with different sugarcane research institutes of the country, like the Pakistan Agriculture Research Council, NARC, Nuclear Institute of Agriculture, Sugarcane Research Center, Thatta and the recently developed productivity enhancement institute of PARC at Thatta. Educating sugarcane growers with the latest agronomical practices is a regular feature.

The updated knowledge is being disseminated in seminars, workshops, village meetings, training sessions and publications. Laser leveling, solar tube wells, preparation of land technology, sugarcane planter, ridges, latest cropping patterns, soil sampling, double cropping chip bud technology, raised-bed nurseries and introduction of latest irrigation technologies, like, drip irrigation, sprinkling, skip irrigation etc, are being exercised in the area of our operation, which definitely added value and improved economy of the growers.

PAGE: How was 2022 for the sugar sector in Pakistan?

Riaz Javed Suleri: The sugar sector has always suffered due to the political decisions of the governments. An increase in the price of sugar is always attributed to the weak hold of the government on commodity prices and ultimately hampers the timely decision.

The year 2022 is a glaring example of such a situation. The country produced 8.2 million tons of sugar, which is well above the national consumption of 6.2 million tons.

In presence of the Track and Trace System of the Federal Board of Revenue, the production figures are easily available just after the closure of the crushing season. The surplus should have been exported but till today the decision has been delayed on one pretext or the other.

The international price is very high and the government should have taken advantage and can easily earn foreign exchange by exporting a surplus quantity of at least one million tons.

The sugar industry badly suffered because of this unrealistic, policy of the government to control the price of sugar whereas the minimum support price of sugarcane is being increased every year. The mills could not sell the product even at the cost price and suffered huge losses. The current sugar season has already started and the surplus sugar is still lying at the godowns of the mills, repenting the policymakers. The government has now allowed one lakh tons of sugar for export, which still needs the node of ECNEL.

PAGE: What is your standpoint on the export and import of sugar?

Riaz Javed Suleri: Export or import of sugar only comes into effect when there is a surplus or shortage of sugar. The government data is always misleading and delayed decisions by the policymakers always result in the politicization of the issue. The government collects all sugar production data through cane commissioners and is well aware of the availability and non-availability of sugar in the country.

The surplus sugar should have been reported and then allowed to be exported when the international market was high and still is. But even after repeatedly verifying the availability date, no decision to export sugar has been made. This slackness is paying heavily on the government as well as the sugar industry, in the existing scenario of the dearth of foreign exchange in the country. The decision of 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2018-19 and 2019-20 speaks volume about the export and import of sugar policy of the respective governments and the government has to suffer huge losses because of wrong and untimely decisions of exporting sugar and then importing sugar.

Sugar is an international commodity and decisions are supposed to be made keeping in view the international market. Subsidization on export is also because of this factor.

PAGE: How would you comment on the government decisions in 2022 for the sugar sector?

Riaz Javed Suleri: It is never too late. This decision should be taken immediately to export the surplus quantity of sugar available when the international market is favorable and we need foreign exchange. Artificial control of sugar prices in the local market is damaging for the sugar industry in the present inflation hike situation.

Data collection on sugar produced, per capita consumption, surplus availability, and production cost of sugar produced in different provinces need to be regularized and systematized so that the issue of surplus or less availability of sugar in the country, could be easily addressed. The timely decision in a stipulated timeframe should be a regular phenomenon, as is being done in our neighboring country as well as other sugar-producing countries.

PAGE: Your respective about the agriculture sector during 2022?

Riaz Javed Suleri: The agriculture sector progressed in 2021-22 and record production was observed. Heavy rains and floods badly hampered this achievement and the farmers have to suffer huge losses. Unfortunately, the respective governments did not come to the rescue of farmers to the extent they should have.

The economic jolt to the farmers may take another year to restore. Government has to help the small farmer in particular with subsidization in seed, electricity, fertilizer and other possible modes to redress this grave situation.