Abstract
A study was conducted at Technology Transfer Institute, Tandojam, Pakistan during 2008-09 to analyse sugar industry competitiveness in Pakistan. For this purpose data were collected both from primary and secondary sources. The primary data were collected from sugarcane growers and sugar industry using a well structured pre-tested questionnaire from Sindh, Punjab and NWFP (now Khyber Pakhtunkhwa). Secondary data were collected from published annual reports of Pakistan Sugar Mills Association (PSMA). The results show that in Sindh, 50 percent sugar industry falls in large size group. In Punjab a major portion of sugar industry (70%) also falls in large size group, while sugar industry of NWFP falls in small size group. In Punjab and NWFP, 76 and 70 percent are small size growers having less than 5 hectares, whereas, in Sindh 49 percent are small growers. The competitiveness of sugar industry indicates that sugar industry of Punjab had the advantage in total quantity of sugar production. Sugar industry of Sindh had the advantage in extraction rate of sugar per ton of sugarcane and industry of NWFP had advantage in molasses recovery percentage. Transportation was found as affecting the production costs of commodities. The expenditure on transportation was estimated at 16,079 million rupees for the crop year 2007-08. The average cost per transaction incurred by farmers ranged Rs.250-262.5 per ton in 2007-08. The study concludes that low sugar recovery percentage was the most serious problem faced by sugar industries followed by de-zoning. 
