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Sugar sector counts losses

BSS, Dhaka
The sugar sector is incurring huge losses due to absence of a long-term plan and effective measures.
Bangladesh Sugar and Food Industries Corporation (BSFIC) officials said it had made profits in 16 years and incurred losses in 21 years since its inception 37 years ago.
On average, the officials said, the losses amount to Tk 250 crore every year. However, due to domestic production, the country does not have to import sugar.
"Measures will be taken to reduce the losses," said BSFIC Chairman Tariq-ul Islam. Referring to the guidelines of Prime Minister Sheikh Hasina, he said various proposals had been made to protect the sugar industry.
The proposals include modernising the machineries at the sugar industries.
Also, programmes are being undertaken to refine raw sugar at the sugar mills as per the guidelines of the prime minister, he said.
The proposals that have been sent to the Planning Commission include a recommendation for the sugar industry to be declared an agro-based
sector.
According to the BFSIC, the four state-run sugar mills have the capacity of producing 210,440 tonnes sugar a year against the country’s demand tor 12 lakh tonnes. The production of sugar at these sugar mills last year was 163,843 tonnes.
During the current crushing year, the production of sugar at the mills was 79,922 tonnes due to a shortage of sugarcanes.
Four private sugar refinery mills have the capacity of producing nine lakh tonnes of sugar, but they have to count huge losses due to an inadequate supply of sugarcanes.
In fiscal 2008-09, the sugar mills incurred losses of Tk 217.57 crore as they produced 79,922 tonnes sugar by crushing 11,83,950 tonnes sugar-canes.
Besides higher production cost of locally made sugar, there is scarcity of agricultural products, an unusual price hike, unavailability of sugarcane are the reasons for losses in the sugar industry.
The production of sugarcane is declining as its competitive crops such as rice, wheat, oilseeds and vegetable are becoming attractive due to higher prices.