Empowering the sugarcane growers in Pnjb Sugarcane is one of the major cash crops of Pakistan. Cultivated over an area of one million hectares, it is an important source ofincome and employment for the farming community of the country.  It is mainly grown as primary raw material for the production of sugar. Pakistan is the fifth largest country in the world in terms of area under sugar cane cultivation and 11th by production.
The sugar industry in Pakistan is the second largest agro # based industry consisting of about 80 sugar mills with annual crushing capacity of over 6.1 million tones. Most of these are in rural areas of Punjab and Sindh.  Forty six of these mills are in Punjab, twenty six in Sind and eight in Khyber Pukhtun Kha (KPK). About 80-85 % of the total sugarcane production goes into the production of sugar. The remaining 15-20 % is converted into gur, a local variant of unrefined sugar, which is largely produced and consumed in KPK .
The sugarcane growers in Pakistan have historically been struggling with many constraints and injustices like late announcement of support price by the government, that too, usually less than their cost of production, late start of crushing season by the millers, making it difficult for small holders to clear their land for timely wheat cultivation; under weighing, late payment of dues sometimemore than a year.
The millers, politically, socially and economically powerful, team up to exploit the sugarcane growers. Secured in the knowledge that the farmers are forced to sell their crops to clear their field for sowing of wheat crop, they offer them a price below the government#s notified rates every season.
Pakistan Sugar Mills Association (PSMA) holds the monopolistic power in fixing support price. It deliberately delays the crushing season as well as payments of dues to growers. Consequently, some small holdershave given-up sugarcane cultivation. Acreage under this cash crop is on the decline which poses serious threat for food security and livelihood for farming community in the country.  Others in Punjab, refusing to sell their crops on credit to the sugar mill owners who haven#t cleared their dues for over a year, have started making their own gur. The price of gur, PRs 2,100 per 40kg, paid in cash, against the announced price of sugarcane PRs 170 per 40 kgs gives comfortable cushion, thus encouraging the growers to pursue gur markets.
Gur making is a seasonal business and provides employment opportunity to the rural population. Other benefits include high return, early vacation of land, cash payment, interest free loans by gur dealers and self-employment.
Gur is traditionally used in rural areas of the KPK, Balochistan and the adjoining tribal territory. It is also exported to Afghanistan. Central Asian markets offer a vast potential for gur used for brewery purpose. Its manufacturing for domestic consumption is almost a century old practicein Peshawar, Charsadda, Mardan and Swabi districts, the major sugarcane producing areas of the KPK.
Sugarcane growers of this region too, used to supply their produce to sugar mills. However, they began switching over to gur making on commercial basis as early as1970#s. They installed small manufacturing units locally called #Ghani#. Malpractices like issuing indents, under-weighing, delayedpayments etc. at the mill level and better return from gur convinced these growers to turn to gur making. At present, out of 8 sugar mills only 4 sugar mills  are operating in KPK, others are non operational due to non-supply of sugarcane by the farmers.  The small holders, in KPK, have been able to challenge the monopolistic power of Sugar Mills As The small sugar cane growers in KPK who have an option to produce gur get better returns than supplying raw material to the big sugar mills at exploitive terms. Having an alternative enables them to challenge the monopolistic power of PSMA Association. They have mechanized their operation of gur processingand are better organized. It has improved their livelihood. While in Punjab where the land under sugar cane cultivation is many times larger than KPK and livelihoods of many more families depend on it; gur making process is neither efficient nor organized. The sugarcane growers suffer seriously at the hands of sugar mills with delayed crushing seasons, delayed payments, under-weighing, illegal deductions and missed wheat sowing. This affects their livelihood and household food security. The monopolistic power of PSMA needs to be challenged in Punjab too in order to strengthen food security and livelihoods, which otherwise will have serious repercussions in the long run; both at the local and national level. Having an alternative will enable these small holders to bring the PSMA tothe negotiation table and start a more productive relationship. Oxfam Novib, Pakistanand its partner can provide a platform for such negotiations. It can also play a proactive role along with similar thinking organizations and local partners in lobbying for concessions to these small processing units as well as easing out export restrictions.
 Lok Sanj Foundation, our partner, will demonstrate to the sugar cane growers in Punjab the benefit of the experience of KPK grower on a pilot basis. The ownership of this unit will be decided in the last quarter of the project.