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Educator Copy

Note on the Pakistan Sugar Industry

Zafar Iqbal Qureshi


INDUSTRY : Sugar

AREA : Industry & Competitive Strategy

ORGANIZATION : Pakistan Sugar Industry

LENGTH : 24

LUMS No : 29-001-2011-1

PUBLICATION YEAR : 2011

DESCRIPTION

KEYWORDS:

Pakistan,Sugar Industry,Sugar Market,Sugar Consumption,Sugar Production,Sugarcane Growers,Sugar Producers,Sugar Mills Capacity,Competition Commission of Pakistan,CCP


DESCRIPTION:

The sugar Industry Note is developed around the sugar price crisis which emerged during 2010. The shortage of sugar is a recurring phenomenon in Pakistan. Various players having stakes in the availability of this item usually jump into the fray to ensure that when there are shortages prices are not allowed to rise to a level where these begin to affect every household. While most of the owners of individual mills are politically influential who can pull policy strings in their favor, their interests are also safeguarded by their representative body called Pakistan Sugar Mills Association (PSMA). The Note describes the stakes of various important players in the industry such as; Farmers, Sugar Producers, Government, Trading Corporation of Pakistan (TCP), Pakistan Sugar Mills Association (PSMA) and above all, the Competition Commission of Pakistan (CCP). The Note raises some pertinent questions; Was the current crisis a one-off situation or could it repeat itself? What, if any, was the role of the government when free market forces failed to self-correct? And above all, what should be the role of the Competition Commission of Pakistan (CCP) in preventing the cartels from emerging either within the sugar industry, or any other industry? 


LEARNING OBJECTIVES:

This industry Note can be used to teach a framework of how to undertake a rigorous industry analysis. This Note can be taught either in a course on Industry Competitiveness and Industry Analysis, or as a part of a course on Corporate Strategy to MBA students as well as to General Managers engaged in Strategy Formulation


SUBJECTS COVERED:

Competitive Strategy, Industry Analysis