The state-run 15 sugar mills are facing around Tk 4000 crore losses because of corruption, inefficiency and irregularities of the mills’ authorities over the last five years. But unfortunately, the farmers and the workers are bearing the brunt of incompetence of the authorities.
Besides, the sugar mills are currently saddled with an accumulated debt of worth Tk 8000 crore to different banks, which now stands entirely defaulted. According to concerned sources, the mills are now selling per kg sugar at Tk 60, while their production cost is more than Tk 300. On the other hand, all the private sugar mills are running on profit. This bleak situation has forced the BSFIC to seek a funding of Tk 800.5 crore to pay off their partly debts.
Meanwhile, the authorities of Bangladesh Sugar and Food Industries Corporation (BSFIC) on December 2 announced that it would close operations of six sugar mills in a bid to reduce losses, a move that sparked outrage among the 2,884 workers. These six closed mills had incurred a loss of Tk 380 crore during the last fiscal year. However, the authorities said that the displayed workers would be employed for the time being in nine other mills. The closed mills will undergo modernisation with a view to making them commercially viable.
There were allegations that in spite of huge demands for local sugar of the state-owned mills, the authorities do not release them from the mills only to facilitate the private sugar mills. As a result, 45 thousand tonnes of sugar are remained unsold. Surprisingly, Bangladesh has to import a large quantity of sugar every year, as the state-owned mills cannot supply even 100,000 tonnes against an annual demand of around 1.5 crore tonnes.
Mentionable, the BSFIC emerged a single corporate body in 1976 following a merger between the Bangladesh Sugar Mills Corporation and Bangladesh Food and Allied Industries Corporation.
It is to be mentioned that under the joint venture, Thai Exim Bank and Japan Bank for International Cooperation will collectively invest Tk 5000 crore to modernise the country’s state-run sugar mills. Both the organizations have already started a feasibility study on the project but progress has been slow due to the ongoing coronavirus pandemic.
Since the government-run sugar mills are currently saddled with huge losses and stockpiled sugar remained unsold, the mills now sink into a deep crisis and the workers are denied their regular salaries on time. Authorities concerned must have to take instant measures to modernise these mills, including the closed ones, for the greater interest of the country.
