Urban legend has got the sugar industry, or rather the ‘barons’ who are supposed to run it, as responsible for the woes of the country. They evade excise by fudging production figures, and blackmarketing the sugar they have under-reported. They first encourage farmers to grow sugarcane, even though there is not enough water for it, and then delay paying them for that cane; thus they have ruined the agriculture of the entire country. Most damagingly, they export their product and create a domestic shortage, forcing the government to import it, thus upsetting the balance of trade. Its status as a staple means that it is a politically sensitive subject. There is a kernel of truth in all the accusations. The sugar lobby is politically very powerful, and has a firm presence in every government, every political party. It can be considered part of the ‘deep state’, so ubiquitous is its presence. As one of the highest payers of income tax and sales tax, the government has to give it due considertiom
However, for all its power, it has got a lot of bad press. The industry finds itself tarred with the same brush. Therefore, the industry deserved the setting up of a Committee on Sugar Stocking, Forecasting and Export, and that the industry should be represented on the committee. The issue is that of exports. While millers naturally seek to sell abroad if they can earn more money than at home, this hs created a shortage at home, forcing up the price. By looking at the proposal of a decade to deregulate the industry, the committee was also looking to more freedom to export. However, as the Minister pointed out, there was a need to improve productivity. It is only when Pakistani sugar is both cheaper and better that it will create sufficient demand for itself.
While productivity will only be improved at the level of the mills and farmers, it is up to the government to take the steps necessary to ensure that increase in productivity. It will have a greater need of ensuring correct and plentiful data before any decisions are made. After all, sugar is a staple, and has been treated as such since at least World War II, when it was rationed for the first time. It is important for the industry to carry out research on minimizing water use, including examining alternatives such as sugar-beets. For that, the government must step up to the plate.
