Karachi: The sugar industry is trying to make bagasse prices, a leftover from sugarcane, as expensive as coal, according to local media report. Bagasse is used as fuel in factories. Pakistan is looking for ways to cut energy costs because thermal energy is becoming very expensive, and there are heavy taxes on it.
But now, there’s talk about making bagasse prices go up by connecting them to coal prices. As per media report, influential people in the government are shaping this plan. Currently, bagasse sells for Rs5,000 to Rs8,000 per tonne, but if it’s tied to coal prices, it could go up to around Rs 40,000 per tonne.
Coal costs about Rs45,000 per tonne now, and there’s talk about a monopoly on imported coal. Pakistan grows sugarcane in a huge area, producing lots of it. Traditionally, sugarcane has only been used to make sugar, but it could also be used to make electricity, which would be a big help to the country’s energy needs.
Sugar mills that make electricity have been offered some financial help. If bagasse prices go up as much as coal prices, it’ll be even harder for industries to get cheaper energy. This will add to the country’s problems with high energy costs, leading to big losses.
