The Sugarcane Curse

How One Crop is Undermining Pakistan’s Agricultural Sustainability

This article investigates the negative impacts of sugarcane cultivation in Pakistan, analyzing its ecological, economic, and political consequences. Despite its profitability, sugarcane poses significant threats to water resources, crop diversity, and institutional integrity.

Based on recent reports, empirical studies, and policy reviews, this article argues for urgent reform in Pakistan’s agricultural policy framework to promote sustainable crop practices.

1. Introduction

Pakistan’s agrarian economy has historically relied on water-intensive crops, but few have been as damaging as sugarcane. Once seen as a cash crop for rural upliftment, sugarcane now contributes to severe water stress, displaces key exports like cotton, and perpetuates elite capture of agricultural resources.

This article explores the ecological, economic, and political impacts of sugarcane, emphasizing the need for systemic reform.

2. Water Usage and Environmental Impact

Sugarcane requires 1,500–2,500 mm of water annually, significantly higher than cotton (600–900 mm) and wheat (450 mm).

According to the Pakistan Institute of Development Economics (PIDE, 2020), sugarcane occupies only 4% of cropped land yet consumes over 22% of irrigation water.

The Pakistan Council of Research in Water Resources (PCRWR, 2021) warns that Pakistan’s per capita water availability has fallen below 900 cubic meters, placing it in the water-scarce category. In areas like Punjab and Sindh, water tables have dropped by 3–5 meters due to excessive irrigation for sugarcane.

3. Displacement of Cotton and Economic Consequences

Cotton, once Pakistan’s premier export crop, has suffered a 65% decline in production—from 14.1 million bales in 2005 to under 5 million in 2023 (Profit, 2023). The decline is largely due to farmers switching to sugarcane, incentivized by price guarantees, mill credit, and political support.

Consequently, Pakistan now imports over $2 billion in cotton annually, undermining its textile industry and foreign reserves.

A PIDE study (2020) further reveals that cotton delivers four times more economic value per unit of water compared to sugarcane. Yet subsidies and support policies remain disproportionately skewed toward sugarcane.

4. Political Economy and Elite Capture

More than 70% of sugar mills in Pakistan are owned by political elites across major parties. A 2020 FIA investigation exposed systemic manipulation by sugar barons, including hoarding, artificial shortages, and exploitation of farmers.

In districts like Rahim Yar Khan and Ghotki, sugar mills act as monopolistic entities—controlling credit, seeds, and procurement practices. This entrenched power structure blocks agricultural reforms and distorts market competition.

5. Environmental and Social Consequences

Excessive sugarcane cultivation has led to soil salinity, erosion, and loss of biodiversity. In rural areas, water depletion has forced communities to rely on tanker services or polluted canals. Moreover, monoculture farming of sugarcane reduces resilience to climate change and undermines food security.

6. Policy Recommendations

To mitigate the sugarcane crisis, the following reforms are proposed:

• Implement water pricing mechanisms to discourage excessive irrigation.
• Promote water-efficient crops through research, subsidies, and guaranteed procurement.
• Enforce anti-trust regulations on sugar mills to dismantle political monopolies.
• Digitize procurement systems to ensure price transparency.
• Invest in farmer education for sustainable agricultural practices.

7. Conclusion

Sugarcane’s dominance in Pakistan is not merely an agricultural issue; it is a reflection of policy failure, environmental neglect, and political capture. To ensure food security, water sustainability, and rural equity, Pakistan must reorient its agricultural priorities away from sugarcane and toward long-term ecological and economic health.

References

• Pakistan Institute of Development Economics (PIDE). (2020). Crop Water Productivity and Economic Return.
• Pakistan Council of Research in Water Resources (PCRWR). (2021). Annual Water Resources Report.
• Profit Pakistan Today. (2023). “Sugarcane’s Rise, Cotton’s Fall.”
• FIA Sugar Inquiry Report. (2020).
• World Bank. (2018). Pakistan Water Management Report.
• Federal Board of Revenue (FBR). (2022). Agricultural Subsidy Audit.