Pakistan Sugar Industry Seeks 5-8 Times Hike in Bagasse Prices

Pakistan's sugar industry plans to increase bagasse prices 5-8 times, linking them to coal prices, from Rs5,000-8,000 to Rs40,000 per tonne. The proposed hike has raised concerns among stakeholders about the impact on affordable energy options in the country.

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Pakistan Sugar Industry Seeks 5-8 Times Hike in Bagasse Prices

Pakistan Sugar Industry Seeks 5-8 Times Hike in Bagasse Prices

influential, sugar, industry, plans, five, fold, i Pakistan's sugar industry is making a bold move to link bagasse prices to coal prices, potentially resulting in a staggering 5-8 times increase in the current price of bagasse. The proposed hike would take bagasse rates from the current range of Rs5,000 to Rs8,000 per tonne to around Rs40,000 per tonne, on par with the present coal price of about Rs45,000 per tonne.

Why this matters: This move could have far-reaching implications for Pakistan's energy landscape, potentially limiting the availability of affordable energy options and exacerbating the country's energy crisis. The outcome of this proposal will significantly impact Pakistan's economic stability and its ability to explore alternative energy sources.

This attempt by the sugar industry is being seen as an effort to reduce cheaper energy options for the sector. If successful, it would further limit the availability of affordable energy in a country already grappling with substantial losses due to high energy costs. The move comes at a time when sugarcane is cultivated on an area of 1.22 million hectares in Pakistan, with a total production of 73.40 million tonnes.

Despite the challenges, experts believe the sugarcane sector holds immense potential to contribute significantly to Pakistan's energy matrix. Estimates suggest that sugarcane has the capacity to generate approximately 3,000MW of electricity for the country. Recognizing this potential, various economic incentives have been offered to power-producing sugar mills to encourage them to harness this renewable energy source.

The sugar industry's attempt to increase bagasse prices by such a substantial margin has raised concerns among stakeholders. If the proposed hike is implemented, it could have far-reaching implications for the energy landscape in Pakistan. The country's energy sector is already facing numerous challenges, and this move may further complicate the situation by making cheaper energy options less accessible.

As Pakistan grapples with the high cost of energy and seeks to explore alternative sources, the sugarcane sector's potential to generate electricity cannot be overlooked. However, the proposed linking of bagasse prices to coal prices by the sugar industry has sparked a debate about the balance between industry profitability and the availability of affordable energy options. The outcome of this move will have significant consequences for Pakistan's energy future and its economic stability.

Key Takeaways

  • Pakistan's sugar industry plans to increase bagasse prices 5-8 times, from Rs5,000-8,000 to Rs40,000 per tonne.
  • This move could limit affordable energy options, exacerbating Pakistan's energy crisis.
  • Sugarcane sector has potential to generate 3,000MW of electricity, a significant contribution to Pakistan's energy matrix.
  • Industry profitability vs. affordable energy options is a key debate sparked by the proposed price hike.
  • The outcome will significantly impact Pakistan's energy future and economic stability.