Nine sugar mills to begin crushing by Dec 18

The country’s nine state-owned sugar mills are beginning their crushing seasons in phases, with the government setting December 18 as the deadline for all nine to start operations. 

The development comes as the loss-making industry continues to struggle with low sugar recovery, outdated machinery and inadequate sugarcane supplies.

North Bengal Sugar Mills in Gopalpur, Natore, has already started crushing, producing around 400 tonnes, said Md Shamsuzzaman Suruz, chairman of the Bangladesh Sugar and Food Industries Corporation (BSFIC).

Natore Sugar Mills and Rajshahi Sugar Mills are scheduled to begin on November 13, he said. According to a Ministry of Industries notification published in the Bangladesh Gazette on November 2, Zeal Bangla Sugar Mills in Dewanganj, Jamalpur, will start operations on November 27, followed by Thakurgaon Sugar Mills on December 4.

The remaining four mills -- Joypurhat Sugar Mills, Carew & Co (Bangladesh) in Darshana, Chuadanga, Mobarakganj Sugar Mills in Naldanga, Jhenaidah, and Faridpur Sugar Mills in Madhukhali -- are scheduled to begin crushing on December 18.

The notification replaces the schedule set by a government notification issued in August 1994 and takes effect immediately.

Suruz said BSFIC was monitoring crushing and sugar production daily. Recovery at the beginning of the season is around 5 percent, but the corporation hopes to raise it to 6 percent or more as crushing progresses.

“We are taking special initiatives to improve recovery. There are some technical and other factors behind the low rates, and we are looking into those issues,” he said. Officials have also been deployed to ensure mills receive clean, good-quality sugarcane.

The corporation is testing improved sugarcane varieties in Madhukhali and Natore before considering their introduction elsewhere, he added.

BSFIC reported an overall loss of Tk 554.36 crore in FY2024-25, up from Tk 508.24 crore a year earlier, according to its annual report. The losses cover the corporation’s establishments, not just its nine operational sugar mills.

Only Carew & Co (Bangladesh) Ltd among the nine mills posted a profit, earning Tk 97.08 crore during the year.

Sugar production cost stood at Tk 260.14 per kilogramme, including interest, and Tk 181.73 excluding interest, while the government’s fixed selling price was Tk 125 per kilogramme.

The nine mills crushed 839,211 tonnes of sugarcane and produced 46,187 tonnes of sugar in FY2024-25, against annual domestic demand of around 20 lakh tonnes. The average recovery rate rose to 5.50 percent from 5.07 percent a year earlier.

BSFIC attributed the industry’s losses to inadequate sugarcane supplies relative to crushing capacity and declining efficiency caused by ageing factories and machinery. Six of its 15 mills have remained closed since FY2020-21.

Source: The Daily Star