ISLAMABAD: It seems unbelievable but it is a fact that several sugar mills in Pakistan have reported financial losses during the first half of the ongoing crushing year despite record high prices of the sweetener during crushing year 2020-21. Sugar mills’ year starts with the beginning of crushing season in October every year and it ends in September.
When the PTI government came to power in August 2018, retail prices of sugar at that time were in the range of 55-60 rupees/kg. However, within months the retail price of sugar surged to above 100 rupees per kg in different stages amid the government’s crackdown on mills and hoarders. These days, the retail price of sugar is still fluctuating around 98-105 rupees per kg in different areas in the country.
However, despite almost 100 percent increase in retail sugar prices in the country, many sugar mills have suffered huge financial losses in 2020 and 2021. Sugar mills which have reported losses are Tandlianwala Sugar Mills Limited. On June 2, 2021, the company reported 458 million rupees loss before tax and 661 million loss after payment of tax for the half-year ending March 31, 2021. The price of shares of this sugar mill has also dropped by 5.62 rupees at stock market during this period.
This half-yearly loss is related to Oct 2020 to March 2021 period. Similarly, Shakarganj Limited has also reported more than half a billion rupees before tax, 623 million rupees and 780 million rupees loss after payment of tax. Shakarganj has reported a 6.39 rupees decline in value of its share in the stock market from Oct 2020 to March 2021.
Meanwhile, Abdullah Shah Ghazi Sugar Mills has also suffered 143.43 million pre-tax loss and 102 million rupees after tax loss during the half year ending March 31, 2021. Dewan Sugar Mills, one of the largest sugar mills in the country, has also sustained 509 million rupees loss before tax payment and 524 million rupees loss after payment of tax.
Dewar Sugar has reported a 5.73 rupees decline in its share’s value at the stock market by March 2021. Furthermore, Husein Sugar Mills Limited has reported 37.19 million pre-tax profit and 22.42 million post-tax loss in the first half of the ongoing crushing year. Faran Sugar Mills Limited has also reported 95 million rupees pre-tax loss and 150.9 million post-tax loss during Oct 2020 to March 2021.
Company has recorded a 1.40 rupee loss in value of its share at stock market. Sanghar Sugar Mills has reported 89 million rupees pre-tax and 105 million rupees post tax loss in the first half of the current crushing year. Sindh Abadgar’s Sugar Mills has reported 77 million pre-tax and 69.55 million rupees post-tax loss. The Premier Sugar Mills has also sustained 194.65 million rupees before tax loss and 244.53 million rupees after tax loss in first half.
Haseeb Waqas Sugar Mills Limited also suffered 411 million rupees pre-tax and 162.12 million rupees post-tax loss. Babar Farid Sugar Mills too reported 16.79 million before tax loss and 33 million rupees after tax loss during Oct 2020 to March 2021 period.
JDW (Jamal Deen Wali) Sugar Mills Limited, owned by business-tycoon-turned politician Jahangir Tareen and his family has earned 383.43 million rupees profit before tax while profit post-tax dropped to 282.87 million in March 2021. Value of share of JDW Sugar Mills has increased by 4.73 rupees during Oct-2020 to March 31, 2021.
JDW Sugar Mills is among those few mills which have reported huge profit in the last crushing season and in the ongoing crushing year. Habib Sugar Mills Limited has also reported 739 million rupees pre-tax profit and 644 million rupees after tax profit during the period under review.
Price of the company’s share at the stock market has also edged up by 4.29 rupees during this period. Al-Noor Sugar Mills has earned 291.26 million pre-tax profit and 134.12 million post-tax profit. Its share price also surged by 6.55 rupees during the period quoted above. Al-Abbas, Sakrand and Mirpurkhas Sugar Mills have also reported profit in the first half of the ongoing crushing season.