Bangladesh Sugar and Food Industries Corporation (BSFIC) Chairman Advocate Md Shamchuzzaman Suroj has said the government has taken initiatives to reopen closed state-owned sugar mills to boost production and create new employment opportunities.
“Under the directives of Prime Minister Tarique Rahman, no industrial establishment will be kept closed. Accordingly, steps are being taken to gradually reopen all closed government sugar mills,” he said in an exclusive interview with Bangladesh Sangbad Sangstha (BSS) at the BSFIC headquarters in the city recently.
The BSFIC chairman said six of the country’s 15 state-owned sugar mills currently have suspended crushing operations.
However, sugarcane cultivation continues in the areas under these mills, he said, adding that the government is working to gradually bring the mills back into full-scale production while encouraging private entrepreneurs to participate through necessary investment.
“The Prime Minister’s directive is to keep the wheels of all factories running. BSFIC is therefore working to attract new investment,” Suroj said.
He said reopening the closed mills would create employment, increase production and accelerate economic activities in the surrounding areas.
Highlighting the social importance of the sugar mills, he said the facilities are not merely centres of sugar production but also provide livelihoods for millions of sugarcane farmers and play an important role in the rural economy and local social development.
The mills also contribute to public welfare by operating hospitals and educational institutions and developing roads and other infrastructure in surrounding areas, he added.
Suroj said the sugar mills have significant potential for energy savings.
Operating factories with state-supplied electricity used to cost around Tk 35 lakh per day, but the cost is being reduced through in-house power generation, he said.
“In the future, there are plans to generate electricity through co-generation using sugarcane bagasse and supply the surplus power to the national grid,” he said.
Regarding losses incurred by state-owned sugar mills, the BSFIC chairman identified interest on loans and the “trade gap” as major factors.
He said private-sector enterprises often receive facilities such as interest waivers, while state-owned sugar mills do not always receive similar benefits.
“We will approach the government to take necessary measures in this regard,” he said.
Suroj claimed that excluding loan interest and duties, BSFIC’s actual operational losses are not significant.
He said the corporation paid around Tk 213 crore to the government in excise duty, taxes and VAT in the last fiscal year.
The corporation is also taking initiatives to reduce losses by producing new by-products from sugarcane and other raw materials, he said.
The BSFIC chairman said incentives for sugarcane farmers have been increased to encourage cultivation.
The price of sugarcane was raised from Tk 600 to Tk 625 per quintal in the last fiscal year, while the amount of incentives for farmers was increased from Tk 6 crore to Tk 11 crore, he said.
Regarding faster payment to farmers, Suroj said a pilot project has been successfully implemented at Mobarakganj Sugar Mills.
“Under the system, payment is made to farmers through mobile transaction on their accounts immediately after the weight of their sugarcane is recorded,” he said.
Previously, farmers had to go through several desks to receive payment, whereas the digital system now enables immediate settlement, he added.
He said farmers are also being provided with weather forecasts and cultivation-related advice through software.
Suroj stressed the importance of state-owned sugar mills in environmental protection, saying plans are underway to transform the sugar industry into a modern, environment-friendly and self-reliant sector.
Highlighting the role of sugarcane in environmental protection, he said studies have shown that BSFIC contributes to the absorption of around 66,045 tonnes of carbon annually.
He added that 10 sugarcane clumps can absorb carbon dioxide equivalent to that absorbed by a large banyan tree.
“We are working to make the sugar industry modern, environment-friendly and self-reliant and to turn this sector into an important force of the country’s economy,” the BSFIC chairman said.
