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Studying the Sugar Production Process in PakistanIt was noted that the mill also has agents operating for them. These agents areusually set up in areas far from the mill since the growers of that area will nevertravel to the mill themselves so in this way the mill ensures that it is receiving ahealthy supply of sugarcane. The independent contractors are perceived assympathetic and considerate beings working for the betterment of growers bythe farmers.XIII. ‘Gur’Due to scarce stock the ‘gur’ and ‘shakar’ are offered a higher price than whitesugar. Even though there is no limitation on the manufacture of ‘gur’ there is aban on the export of ‘gur’ restricting its market. All managers bluntly announcedthat ‘gur’ making should not be permitted. Some the growers in the KhyberPakhtunkhwa area are also traditional manufacturers of ‘gur’. They believe ‘gur’making should remain permissible to help them support their financial situation.Gur is very dangerous for the sugar industry according to mill managers. Theyadded Peshawar is a traditional gur making area, the government providesprotection to all those people who are involved in gur making and demandedthat this practice needs to be altered. Technically the sugar industry can get 96%benefits from the sugarcane but gur maker can get 60 to 65% so there is 35% lossof natural resources.The mills disapproved ‘gur’ making to the extent that they considered the ruthlessSugarcane Act as “fair”. This act banned gur making in many ‘reserved area’ andprohibited farmers to sell their produce to any other buyer but the particularmill. Unlike the mill managers, farmers found the Sugarcane Act of 1934 extremelyunfair and supported ‘gur’ making actively, in fact they pleaded that export of‘gur’ should be permitted. The PSMA officer was in partial favor of the Act. It wasbeneficial for the small growers as they received seeds and fertilizer from theindustries, industries worked for the benefit of the associated farmers. After dezoningthe farmer could sell the crop to any mill so the mill stopped trying toenhance their productivity. The reason given by the officer for slightly opposingthe act was that the farmer was restricted to one particular mill only.XIV. Zoning and De-zoningThe reserved area laws were amended in 1980s when the new industrial aspirantsopposed these. Zoning was ceased due to the low capacity of sugar industry. Thisy 41
Corporate Social Responsibilityzoning was “100% fair” according to managers; beneficial for both the farmersand millers. With regard to zoning the farmers stood on a different foot than themanagers. They believed that if zones were developed again they will further bedependent on a single mill and hence probability of their exploitation will increase.This law provided sustained monopoly by the old industrial class according to afarmer’s report. Traditional gur makers were seen as ‘villains’ of sugar sector.Raids were done in villages and punishments were assigned to those found guiltyof making gur from their own or purchased sugarcane usually confiscating thegur making machines. 41XV. AccessibilityManagers of sugar mills claimed that the entire population of the country hasaccess to sugar. Access according to them depends on demand and supply,presently sugar demand on the nation level accounts to be 4.2 million tons whilesupply is estimated to be 5 million tons so access is assured.They added that Trading Corporation of Pakistan (TCP) keeps stock of sugar tocover gaps in demand and supply. It was also mentioned that the governmentaids the process of accessibility by selling sugar at discounted prices. Accordingto the National Sugar Policy, the TCP must hold 0.5 million tons of white sugar atall times. Taking into consideration the local demand and competitive price thesereserves may be maintained through imports or domestic procurement. 42TCP is the prime trading organization of Pakistan it was set up as a privatelimited company in 1967. TCP is under the sole ownership and administrativecontrol of Ministry of Commerce, Government of Pakistan acting only underdirections from the Government of Pakistan.When the Government of Pakistan expects shortage or surplus of a particularcommodity it can direct the TCP to import or export the certain commodity. TCPfloats international tenders in case of importing in accord with the PublicProcurement Authority Rules, 2004 (‘PEPRA Rules’). Once TCP has a winning bidit the Ministry of Finance is educated regarding the amount of foreign exchangenecessary for the deal. The Ministry routes this information to the State Bank of41Farmer Report, Punjab Lok Sujag. October 200842National Sugar Policy, Government of Pakistan. 2009-10y 42
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