The Sugar Industry of Pakistan consisted of merely 2 Sugar Mills in 1947-48 with a production capacity of 10,000 Metric Tons of sugar. In the first twenty years the number of Mills increased to 17 and sugar production to 232,000 Metric Tons. By 1988 we had 44 Mills and sugar production jumped to 1.78 million tons. During the last 5 years the Sugar Industry has seen a period of phenomenal but unplanned growth. During 1992-93 season 61 Mills were operational with capability to produce 4 million tons of sugar. Due to unplanned growth, availability of raw material did not keep up with the requirement and the Industry went into a phase of under utilization of capacity.

It has been observed that area under sugarcane does not increase in direct proportion to the installation of new capacity. However with increase in capacity, utilization of sugarcane by the Mills increased from 38.46 percent in 1982-83 to 71.67 percent in 1992-93. .

Sugar Production Capacity and Consumption
With 61 Mills operating in 1992-93, the total installed capacity of sugar production is 4 million tons. Capacity expansion is underway by expansion of some old Mills and installation of 5 new Mill_ expected to come on stream in 1993-94. Next year we are looking at a production capacity of 4.4 million tons.

The consumption of main sweeteners (Sugar and Gur) in Pakistan has remained between 26-34 kgs with an average of 30 kgs per capita per year. The share of Gur in sweeteners consumption per capita has been falling. It fell from 60 percent in 1982-83 to 31 percent in 1987-88. The future forecast of sugar demand on the basis of substitution of Gur with refined sugar is given in Table 2.

National Loss

Unplanned and haphazard growth of Sugar Industry during last 5 years has cost the nation heavily. This policy has permanently damaged the Sugar Industry and the country lost great opportunities for all time to come.

Trend world over is in favour of vertical expansion of the Sugar Industry, to achieve economies of scale. Compared to a standard capacity of 4,000 tons in Pakistan the world sugar industry is moving towards 10,000 to 20,000 tons capacity by vertical expansion. Long term damage inflicted on the Sugar Industry as a result of defective Government policy during the last 5 years is summarized below:

1) Instead of vertical expansion, sugar production capacity has been increased mainly through 3000 TCD to 4000 TCD mills. These new Mills are uneconomical as these have been established against the principle of economies of scale. Scope of expansion of established Sugar Mills has been permanently blocked. We have landed in a situation where production capacity is 4.4 million tons, present domestic demand is 2.67 million tons and majority of Mills are 3000 TCD to 4000 TCD.

2) All new Mills installed during last 5 years were set up in undue haste and without looking into the latest technology options available worldwide. All new Mil1s have traditional low pressure boilers. By ii1stalling high pressure boilers, these Mills could supply 300 MW electricity to the National grid without using extra fuel.

3) Sugar Industry has been pushed in toe regime of under utilization of capacity because of rapid expansion of industry without corresponding increase in raw material. We need to increase sugarcane output by 4-5 percent against actual growth rate of 2 percent for last 10 year.

Importance of Sugar Industry for National Economy

Sugar Industry is vital for national economy. It utilizes sugarcane which is a major cash crop grown in Pakistan. Sugar and sugar based products are essential ingredient of common man's food. Sugar is the cheapest source of energy in our diet. Pakistan Sugar Industry has done well by increasing domestic sugar production of 10,000 tons at the time of partition to 2.4 million tons in 1992-93. With this level of sugar production we have not only achieved self sufficiency in sugar but are now in a position to export. Sugar Industry acts as an effective catalyst of rural uplift by providing a ready market for the produce of farmers in these areas.

Sugar Industry along with the farmers contributes funds for provision of basic infrastructure like roads in rural areas. The industry contributed Rs.200 million under this head in 1992-93 alone. Our contribution to national exchequer in shape of Excise Duty and other state levies is even higher. Sugar Industry contributed Rs.5.1 billion towards Central Excise Duty in 1992-93. This constituted 14.1 percent of total Central Excise Duty collected by the Government.

• Over capacity of 1. 7 million tons, on the basis of domestic demand of 2.7 million tons in 1993-94, has been created.
• Shortage of raw material both in quantity and quality.
• Scope for vertical expansion has been permanently blocked due to installation of several small Sugar Mills.
• Option of power generation lost due to installation of low pressure boilers in all new Sugar Mills installed during 1988-93.

The Industry has to make the best out of this difficult situation. We can not sit back and see this vital Industry perish.

Government needs to understand the gravity of the situation. Quick corrective action is required to salvage the situation. Pakistan Sugar Mils Association has always drawn the attention of the Government and Government owned financial institutions towards the ill affects of defective policy. I wish to report with some satisfaction that, lately there has been some realization at Government level and corrective action is underway. Following urgent steps are required to save the situation from getting worse:
- Complete ban on any new Mills till the present capacity is fully utilized.
- Research on sugarcane to improve its quality and quantity.
- Government support for exporting surplus sugar in the world market.
- Stable domestic market allowing the local industry to recover its reasonable profit cost plus

Capacity Utilization
It will be a deadly option for the Sugar Industry to operate at a low level of capacity utilization. As surplus capacity has been installed, it has to be utilized in the best national interest. Sooner or later raw material availability will also improve. However, the key factor will still be disposal of surplus sugar in the international market. Pakistan Sugar Mills Association is projecting a sugar production of 3 million tons for 1993-94. This will position the industry to enter the export market with 500,000 tons of refined sugar after leaving a substantial buffer stock for domestic market. A brief comment about the sugar scenario in Pakistan is reproduced below from F.O.Licht's International Sugar and Sweetener Report:

Another country that could become a burden for the world market is Pakistan. That country has apparently embarked on an uncontrolled expansion process which could soon lead to unmanageable surpluses of mill sugar. To eliminate imports quite a number of new sugar mills have been put into operation in the past few years and the country's 54th sugar mill commenced grinding in 1992/93. However this is not the end of the expansion process and about 15 new mills in the Punjab and 9 in Sindh may be put into operation within the next few years. According to informed sources this could lead to the accumulation of surpluses and eventually to a collapse of the industry and already in 1992/93 the country will have a surplus even though no sugar will be officially exported. But unofficial exports to neighboring countries such as Afghanistan and Iran are estimated to reach more than 100; ()()() tons each year. If production does develop as expected official exports can be foreseen especially if the country continues to import sugar for internal political reasons. But as in the case of India this could require export subsidies which could prove to .be a burden for the milling industry.

Production and Consumption,
Million metric Ions, raw value

World Sugar Scenario
World sugar production in 1993-94 is forecast as 112.7 million tons, up 1.3 percent from 1992-93. Consumption is forecast to increase only 0.4 percent to 112.9 million tons, less than population increase, despite continued strong consumption growth in Asia. The free market trade will be 15 percent of sugar production assuming the free trade at 17 million tons.

Stocks are forecast to decline 1.1 million tons to the new 'stocks to consumption ratio' of 19.9 percent, down from 21 percent in 1992-93 and 21.9 percent in the year before.
Stocks will be large enough to keep the world sugar price suppressed. Data for world sugar production, supply and distribution for four years is summarized in Table-4.

• Over capacity of 1. 7 million tons, on the basis of domestic demand of 2.7 million tons in 1993-94, has been created.
• Shortage of raw material both in quantity and quality.
• Scope for vertical expansion has been permanently blocked due to installation of several small Sugar Mills.
• Option of power generation lost due to installation of low pressure boilers in all new Sugar Mills installed during 1988-93.
The Industry has to make the best out of this difficult situation. We can not sit back and see this vital Industry perish.

Government needs to understand the gravity of the situation. Quick corrective action is required to salvage the situation. Pakistan Sugar Mils Association has always drawn the attention of the Government and Government owned financial institutions towards the ill affects of defective policy. I wish to report with some satisfaction that, lately there has been some realization at Government level and corrective action is underway. Following urgent steps are required to save the situation from getting worse:
- Complete ban on any new Mills till the present capacity is fully utilized.
- Research on sugarcane to improve its quality and quantity.
- Government support for exporting surplus sugar in the world market.
- Stable domestic market allowing the local industry to recover its reasonable profit cost plus Capacity Utilization

It will be a deadly option for the Sugar Industry to operate at a low level of capacity utilization. As surplus capacity has been installed, it has to be utilized in the best national interest. Sooner or later raw material availability will also improve. However, the key factor will still be disposal of surplus sugar in the international market. Pakistan Sugar Mills Association is projecting a sugar production of 3 million tons for 1993-94. This will position the industry to enter the export market with 500,000 tons of refined sugar after leaving a substantial buffer stock for domestic market. A brief comment about the sugar scenario in Pakistan is reproduced below from F.O.Licht's International Sugar and Sweetener Report:

Another country that could become a burden for the world market is Pakistan. That country has apparently embarked on an uncontrolled expansion process which could soon lead to unmanageable surpluses of mill sugar. To eliminate imports quite a number of new sugar mills have been put into operation in the past few years and the country's 54th sugar mill commenced grinding in 1992/93. However this is not the end of the expansion process and about 15 new mills in the Punjab and 9 in Sindh may be put into operation within the next few years. According to informed sources this could lead to the accumulation of surpluses and eventually to a collapse of the industry and already in 1992/93 the country will have a surplus even though no sugar will be officially exported. But unofficial exports to neighboring countries such as Afghanistan and Iran are estimated to reach more than 100; ()()() tons each year. If production does develop as expected official exports can be foreseen especially if the country continues to import sugar for internal political reasons. But as in the case of India this could require export subsidies which could prove to .be a burden for the milling industry.

Production and Consumption,
Million metric Ions, raw value

World Sugar Scenario
World sugar production in 1993-94 is forecast as 112.7 million tons, up 1.3 percent from 1992-93. Consumption is forecast to increase only 0.4 percent to 112.9 million tons, less than population increase, despite continued strong consumption growth in Asia. The free market trade will be 15 percent of sugar production assuming the free trade at 17 million tons.

Stocks are forecast to decline 1.1 million tons to the new 'stocks to consumption ratio' of 19.9 percent, down from 21 percent in 1992-93 and 21.9 percent in the year before.
Stocks will be large enough to keep the world sugar price suppressed. Data for world sugar production, supply and distribution for four years is summarized in Table-4.

We can not draw any hasty conclusion from these arguments without looking at the bigger picture.

• Sugarcane is grown on approximately 900,000 hectares in the country and is a major cash crop for thousands of farming families.
• Sugar Industry has a tremendous impact on the development and uplift of the area around the Sugar Mills.
• We can not draw any long term conclusion regarding sugar being cheaper in world market. The price is very sensitive to world stocks to consumption ratio. Free trade in the world market is limited to about 15 percent of world production.

It can be seen from Table-5 that world sugar price was as high as 42.30 cents per pound in October 1980. The price dipped to a low 5.90 cents per pound 5 years later in 1985. It has been fluctuating between 11.60 cents and 13.39 cents per pound during 1993. It is obvious that sugar price can not be guaranteed at 13 cents per pound for the next few years.

In other words, world sugar price was US$932 in 1980 and came down to US$130 per ton in 1985. It is now being traded at US$300 per metric ton.

Table-6 gives average world retail sugar price in selected capitals for 1984-1992. A look at the figure for 1992 shows that retail sugar price is atleast 3 times higher than the world sugar price in the free market. It is very clear from this data that Pakistan is not an inefficient sugar producer and it is not fair to expect that the cost of production can be brought down to the level of world free market sugar price. It is not the case for any sugar producing country and can not be true for Pakistan either.

With sugar production capacity being much in excess of our domestic requirement, surplus sugar will have to be exported. If we are unable to achieve this objective, huge stocks will pile up. Financial position of the industry will be adversely affected. Farmers will not be paid in time and we will get into a vicious cycle of fluctuations in sugarcane crop and under utilized capacity.

As explained earlier in this review, sugar export is not possible without GovemJ11ent support. World free sugar trade at 17 million tons is very small. It will not be easy to get a share of 500,000 tons to start with. As all major sugar producing countries in the world are protected by subsidy, import quotas and tariff protection, Pakistan can not be an exception.

Protected domestic market is essential to compensate for the loss on exports. Sugar exports can help us improve our trade balance. We can earn up US$125 million by exporting 500,000 tons of sugar in 1993-94. Foreign exchange earnings will increase in future years. The Government can support export efforts by taking following steps:
1) A one year commitment to maintain the regulatory duty at 25 percent on imported sugar to ensure a stable domestic market. This will enable the sugar producers to recover a part of loss on export from the domestic market.

2) A twenty-jive percent export duty levied on export of Molasses may be withdrawn. Sugar Mills will be compensated to some extent by way of higher molasses price. However some of the molasses is being converted to value added products like Industrial Alcohol. If the export duty is removed from molasses, the Alcohol Industry will suffer and there will be a need for an equivalent rebate to protect this value added product.

3) A fifty percent subsidy on freight may be considered. We understand that similar subsidy on export of agricultural products like flowers and vegetables are given.

It has been observed that the Government is very sensitive to retail price of sugar. Frequent hasty decisions are taken to adjust import duty on sugar. This makes imported sugar economical in the domestic market. Sugar Industry is made to subsidize the consumer. PSMA has time and again pointed out to the Government that domestic industry pays a fixed Central Excise Duty of Rs.2150 per metric ton. Import duty on sugar must be kept at a level which allows the industry to recover its cost of production and a reasonable profit. Sensitivity to domestic sugar price is not justified. Increase of Rs.1 per kg of sugar results in increase of Rs.1O0 per annum for a house hold of 5 persons. Moreover increase in sugar price compared to other food items has been on the lower side during the last 10 years. It is an established fact that no industry can survive by selling its production below the cost of production.
Indian Sugar Industry has gone through a similar situation recently. There has been tremendous build up of sugar stocks during the last three years. Production has increased 22 percent while off take has gone up by only 10 percent. Deteriorating financial position of Mills has resulted in delayed payments to the farmers. A brief note on the Indian Sugar Industry published in November 1992 and June 1993 issues of World Sugar Situation and Outlook is reproduced.

Oversupply in the Indian Sugar Industry:
The sugar industry in India today faces a tremendous problem of oversupply.
Administered cane prices have encouraged farmers to grow more cane than the country's consumers can utilize. Mills hope that the government will assist them this year by agreeing to the establishment of a "buffer stock" which would relieve them of a portion of the cost of holding nearly 5 million tons of ]991/92 sugar which will carry over into ]992/93. If world white sugar prices move higher than $300 or $325 per ton, it may be possible to work down stocks in a profitable manner. Otherwise, the government will soon have to make a choice between measures to restrain the area planted to sugarcane and a comprehensive export subsidy program.

Thanks to the rapid output growth of the last four years, both the public and private sugar milling sectors are experiencing considerable financial stress on the eve of the 1992/93 crushing season. The situation is particularly acute in North India, where state governments have regularly ignored the calculus by which the central government sets a national minimum purchase for sugarcane. At the end of the crushing season in mid-July, sugar mills in Utta Pradesh owed farmers 3.25 billion rupees ($114 million) for cane delivered but not paid for. Such arrearages are not unusual in the Indian sugar business, but this was two and a half times what the mills owed farmers at the same time last year. Arrearage problems, although on a more limited scale, also have occured in most other states. It has been expected that state governments would provide debt relief for those public sector (cooperative and government-owned) mills which were in the red at the end of each production year. Last year the bill came to about one billion rupees ($40 million), but this year it could come to 2.5 billion rupees, at a time when state resources are tight and the central government is pushing the states to cut back their annual budget deficits.

Exports are a possible solution to the current domestic oversupply problem. Unfortunately, export prices have remained far enough below domestic prices that it has been difficult to keep exports fl9wing. By statute, exports are handled by the Indian Sugar and General Industry Export Import Corporation (ISGIEIC), a trading body linked to the national sugar mill associations. Losses on exports are offset by profits on small quotas for
sugar sales to the United States and the European Community, and by assessments on mills in proportion to their output. Although there has been talk of exports as high as 1 million tons in recent years, the subsidy which would have been required has been more than the industry was willing to bear. In 1991/92, 631,000 metric tons of sugar were exported.
A stronger world market could turn around the oversupply problem fairly quickly,' so would a weather-induced decline in sugarcane production. However, neither is expected within the coming year. The Government may agree with an industry suggestion to use part of the Sugar Development Fund (underwritten by the industry) to finance a sugar buffer stock. Nearly everyone acknowledges that this move can be little more than a palliative. Over the coming year, some means must be found of reducing the stocks to a more manageable level.

A number of economists from Indian research institutions and multilateral lending agencies have been raising questions about the wisdom. of encouraging further growth in the sugar sector when the end-product is in surplus, when exports are possible only with subsidies, and when the country appears to be slipping into a deficit position in food grain production.

Industry Financial Problems:

There has been a tremendous build-up in Indian sugar inventories over the last three years. Production has risen 22 percent and off take has increased only 10 percent. As a result sugar stocks now stand at over 5 million tons. The government has allowed sugar to pile up a the mills, knowing that releasing stocks too rapidly would cause a collapse in open market prices, pushing weaker mills even closer to bankruptcy.
The government of India announced a number of sugar policy changes on February16, 1993, designed to provide financial relief to the sugar milling industry and announced on April 29 its intention to decontrol molasses trade. The sugar milling industry has been squeezed for the last few years between central government policies designed to hold down consumer prices for sugar and state government policies designed to maximize income for sugar cane farmers as policies which maintain molasses prices well-below world market prices. Recent policy changes should provide a measure of relief to the Indian sugar industry.
Late Payments and Declining Cane Supplies:
Hard-pressed mills have delayed and, in a few cases, never fully compensated farmers for their cane. Renovation of obsolete mills and construction of new mills has fallen far behind projected levels because public financial institutions (virtually the sole source of credit for sugar mill construction and renovation) are turning down most projects because projected cash flows will not service new loans.

With the country suffering from a substantial oversupply of sugar, and water scarce in several of the states where. mills are planned, it could be argued that more mills are not needed. However, the construction of new sugar mills enjoys enormous political support. Farmers like cane, especially at current prices, because it is easy to grow and provides relatively dependable cash income. Local politicians see mills both as engines of rural growth and, it is alleged, as excellent sources of campaign finance as well.
Outlook:

Higher sugar and molasses prices, a reduced sugar levy percentage, and subsidies for some of the mills' stock-holding expenses will give the mills a measure of financial relief. Although consumers will not be happy with higher retail prices, the Food Ministry can persuasively argue that had prices not been allowed to rise, the drop in cane area this year might turn into a collapse next, followed by tight supplies, skyrocketing prices, and emergency imports. The policy steps taken should allow for the continued expansion of sugar output in India.

Sugar by-Products

It is generally believed in Pakistan that better utilization of the By-Products can reduce the price of sugar drastically. It is also believed that lower cost of production in other countries - is because of better utilization of By-Products. Actually position is different. Although development of By-Products Industry can help in reducing the cost of production to a small extent but major reduction can only result from lower cost of raw material and lesser State Levies.
Sugar Industry is fully aware of various possibilities of By-Products that can be made, and we will do all that is possible for best utilization of Sugar By-Products. Particle Board, Cattle Peed, Citric Acid, Acetic Acid, Furfrol and Industrial Alcohol are a few to mention. Maximum utilization of Bagasse is already being done by a number of Particle Board Plants that have been set up. The Industrial Alcohol Industry in Pakistan is quite mature and present installed capacity of Industrial Alcohol Plants is enough to meet the domestic consumption. We are also exporting this product.

The major problem for setting up Sugar By-Product industries is the minimum economic size of the plant. Market for these By-Products is very small at home and setting up of a plant with large capacity is not feasible in absence of any export market. Production capacities of Citric Acid and Furfrol in the world are more than the world consumption. Very few Manufacturers monopolize both these products and make it impossible for any new entrant to sell in the international market for this reason any progress on production of Citric Acid and Furfrol in Pakistan does not seem possible till such time that we have enough local market to justify a plant of economical size. .
Extra power generation is another option. Unfortunately the new Sugar Mills have lost the initiative by installing low pressure boilers. Two sugar companies have signed Power Purchase Agreement with WAPDA for about
5 MW additional electricity. This is a small but encouraging beginning. This option can be considered whenever existing Sugar Mills embark upon a BMR programme.

Review of 1992-93 Season
The 1992-93 season was a 'Nightmare' season for the Sugar Industry in general and the Mills located in Punjab in particular. This season will go down in the annuals of the Sugar Industry as one of the most disastrous on record following combined effects of devastating floods and coming into operation of a record number of new Sugar Mills in any single year. The cumulative affect of irrational Government policy started showing during the year under review. The Sugar Industry was inflicted with multiple injuries and rendered crippled.

- Production capacity increased to 4 million tons but raw material availability restricted the sugar production to 2.39 million tons. This created a huge idle capacity.

- Subsidized sugar imports were allowed at dumping prices resulting in weak domestic market having 'no relationship to cost of production.

- Rampant inflation resulted in increase in transport cost, higher mark-up on borrowings, increase in utility charges and increase in cost of spares due to eroding value of Pak Rupee. .
A badly wounded Sugar Industry produced a record 2.35 million metric tons of sugar from sugarcane at an average recovery of 8.58 percent on nationwide basis. Highlights of last three seasons are reproduced in Table-7.

Pakistan Sugar Mills Association started the year with a long agenda. Several problems being faced by the industry were to be taken up with the Government. Since November 1992 we have seen 4 Governments. Fifth Government took office on 19 October, 1993. We took up the following major issues with 4 Governments in the last 12 months:-

1) Unplanned expansion of Sugar Industry
2) Subsidized sugar imports in the country
3) Rebate of Central Excise Duty

In addition to these issues Zonal arms of PSMA took up numerous issues at provincial level.
Unplanned Expansion of Sugar Industry

PSMA worked closely with the Government and Financial Institutions on this matter. Prime Minister established a Technical Assistance, Evaluation and Review Committee (T AERC) for study on Sugar Industry. This task was assigned to Planning and Development Division and PSMA was represented. Much progress could not be made in this because of frequent changes in the Governments.
PSMA also drew attention of Financial Institutions regarding over expansion and high cost of new sugar projects. National Development Finance Corporation was the first to respond. NDFC organized a seminar in Karachi where all aspects of Sugar Industry were discussed threadbare. As a result of the efforts of your Association, DFIs quickly realized the gravity of the situation and slowed down the process of providing financial assistance to any new sugar projects. A standard cost of project was worked out -and adopted by all DFIs to curb the incidence of over invoicing.
Subsidized Sugar Imports
Dumping of sugar in our domestic market has been encouraged by the Government for political reasons. PSMA has always agitated against this policy. We have been asking for a leveled playing field. Our contention has been that we need to recover our cost of production plus a reasonable profit to survive. Stock holders of sugar companies can not be asked to subsidize the domestic consumer. We can not pay for the political expediency of the Government.

I am happy to report that our point of view has been accepted after a long struggle. A Committee has been set up in the Finance Division to work out our cost of production. We hope that in future the cost of imported sugar will have some relationship with domestic cost of production. .

Rebate on Central Excise Duty

In order to provide incentive to the Sugar Industry to increase sugar production by transporting sugarcane from inaccessible areas a CED rebate is given. Sugar production in excess of last years production is subjected to 50 percent of normal CED. Recently some changes were made in this policy, which are against the very spirit in which it was introduced in the first place. PSMA has taken up this matter at the level of Finance Minister, Chairman Central Board of Revenue and Member Excise. We are happy with the progress so far are hopeful of a satisfactory outcome.

Other Activities

PSMA made further progress in its relationship with international agencies like UNIDO of United Nations and USAID. .
UNIDO obtained an assistance of US$146,OOO towards providing technical assistance to Pakistan Sugar Industry. A team of experts was sent in February 1993 with experts in the following areas:
- Sugar Industry
- Ethanol Manufacturing
- Sugar Economy
- Energy Management
- Environment

Ten member Mills participated in this programme. The experts visited these Mills and later submitted a report to all participating Mills. A comprehensive report on general aspects of Sugar Industry was also presented with specific recommendations to the Government by PSMA.
PSMA arranged a Private. Power Study tour to Hawaii with the assistance of USAID. Eight member Mills joined the delegation. Beside witnessing the efficiency of the Sugar Mills in Hawaii with a very low labor force the team observed the system and production of power and its utilization.

Though Sugar Mills in Hawaii have a major advantage of having a very long crushing season as compared to Pakistan yet we can see that some of our Mills having high crushing capacity have the potential of producing noticeable surplus power and transferring it to national grid. By doing so we can help the nation meet its power shortage and at the same time help economy of the Sugar Industry, for which few Mills have already taken the initial start of transferring 5 MW on trial basis.

Financial Position

Financial position of PSMA remains healthy. Your Executive Committee took austerity measures to cut costs. We were able to reduce the expenditure to Rs. in 1992-93 compared to Rs In 1991-92.

Acknowledgement

I would like to acknowledge the support and guidance provided to me during the year by the members of Central as well as Zonal Executive Committees. I would also like to place on record my appreciation for the staff at the Central Secretariat in Islamabad and Zonal Offices in Karachi and Lahore for their hard work and dedication.

Future Outlook

We are entering 1993-94 with new challenges and a totally new domestic scenario for the Sugar Industry. We will be facing the problems of surplus for a change. We will be looking for international markets in addition to our traditional domestic market. PSMA will have new roles added to its responsibilities. In addition to acting as representative of Sugar Industry in our relationship with the Government. PSMA will handle distribution of sugar export quotas to its members and issue sugar quality certificates.
I am confident that with your support we will face the new challenges with confidence and to your satisfaction.