Economic Reporter :
The government has provided Tk25 crore to Bangladesh Sugar and Food Industries Corporation as subsidy to purchase sugarcane during harvesting season in the current fiscal year. The corporation earlier demanded a total of Tk1,898.12 crore to meet the gap.
Finance Division issued a letter to the Industries Ministry on providing the subsidy. This is to meet seasonal shortage of capital needed to purchase sugarcane for sugar industry, the letter said.
However, the disbursement should not be seen as an example in future to provide funds for procuring sugarcane during harvesting season, it added.
Bangladesh harvests sugarcane in November and plants during November-March period.
The government disbursed Tk50 crore to BSFIC in the FY2015-16, Tk135 crore in FY2014-15 and Tk175 crore in FY2013-14 for the same purpose.
The corporation earlier demanded a total of Tk1,898.12 crore to meet the gap.
But the Auditor General Office submitted a report citing the amount as Tk1,700.48 crore.
According to Bangladesh Economic Review 2016, the BSFIC reduced its loss to Tk462.39 crore in FY2015-16 from Tk539.7 crore a year ago.
Currently, Bangladesh can meet only 5% of its annual demand of sugar through domestic production while it has to spend more than Tk5,000 crore a year to import sugar to meet the annual domestic requirement of over 2m tonne sugar.
The government has provided Tk25 crore to Bangladesh Sugar and Food Industries Corporation as subsidy to purchase sugarcane during harvesting season in the current fiscal year. The corporation earlier demanded a total of Tk1,898.12 crore to meet the gap.
Finance Division issued a letter to the Industries Ministry on providing the subsidy. This is to meet seasonal shortage of capital needed to purchase sugarcane for sugar industry, the letter said.
However, the disbursement should not be seen as an example in future to provide funds for procuring sugarcane during harvesting season, it added.
Bangladesh harvests sugarcane in November and plants during November-March period.
The government disbursed Tk50 crore to BSFIC in the FY2015-16, Tk135 crore in FY2014-15 and Tk175 crore in FY2013-14 for the same purpose.
The corporation earlier demanded a total of Tk1,898.12 crore to meet the gap.
But the Auditor General Office submitted a report citing the amount as Tk1,700.48 crore.
According to Bangladesh Economic Review 2016, the BSFIC reduced its loss to Tk462.39 crore in FY2015-16 from Tk539.7 crore a year ago.
Currently, Bangladesh can meet only 5% of its annual demand of sugar through domestic production while it has to spend more than Tk5,000 crore a year to import sugar to meet the annual domestic requirement of over 2m tonne sugar.
