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Overview
The sugar industry is a vital part of Pakistan’s agricultural economy, with nearly 90 sugar mills spread across the country. Sugarcane, which is grown extensively in provinces like Punjab and Sindh, is the primary raw material for the industry.
Production Process and Byproducts
Beyond sugar production, mills also produce valuable byproducts, including molasses (used in animal feed and ethanol production) and bagasse (used as a fuel source for energy generation). These byproducts have diversified the sector’s contributions to include renewable energy sources like biofuels.
Economic Role
The sugar industry supports over 1 million farmers and their families, providing a stable income and contributing to rural development. It plays a significant role in Pakistan’s rural economy by supporting agriculture and allied sectors.
Challenges and Sustainability Efforts
This sector faces water scarcity issues, particularly as sugarcane is a water-intensive crop. Additionally, volatile global sugar prices and subsidy issues create economic instability. Efforts to improve crop yield, introduce water-efficient irrigation methods, and develop alternative bio-based products are helping the industry to be more resilient and sustainable.
Kreston Hyder Bhimji & Co. is a well-respected chartered accountant firm based in Pakistan. With over 53 years of experience in the industry, the firm has a deep understanding of the local business landscape and regulatory environment.
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