EIGHT months have passed since the closure of six sugar mills, but there has been little progress in modernising the factories. Bangladesh Sugar and Food Industries Corporation (BSFIC) has prepared a summary on how to ensure the profitability of the closed sugar mills. It will be submitted to the Prime Minister’s Office for approval. The closure of the mills came after the BSFIC found those incurred Tk 787.10 crore in losses per year on an average from 2015-16 to 2019-20 against sugarcane crushing.
If the government gives a nod for foreign direct investment, the process is expected to go ahead. The BSFIC has received seven investment proposals from companies to upgrade the sugar mills. According to a business plan, companies will supply a high-yielding variety of cane free of cost and produce food products from by-products and high-end spirits for exports. The high-yielding variety can produce 80 tonnes of sugarcane per hectare per year compared to 20 tonnes from the local variety of the crop.
Meanwhile, the nine sugar mills across the country may face shortage of sugarcanes this year as the total farming area of this cash crop has declined by almost a half compared to the previous growing season. Farmers in the catchment areas of the sugar mills refrained from cultivating sugarcane in many areas this season after facing enormous hassles and losses due to the sudden closure of six other mills last year. This year, sugarcane was cultivated on 49,900 acres of land in the mill-catchment areas while the total area used was 1.09 lakh acres in 2020.
Against this backdrop, the government, BSFIC, agricultural universities, and local businesses should come up with a plan for survival of the country’s sugar industry. Without introducing high yielding cane varieties, the sugar industry would not function sustainably.
