Allow sugar mills in private sector

Talking to this correspondent, a number of prospective entrepreneurs showed interest to set up medium scale cane-based sugar mills in the area, now barred by industrial law.

They said there is great prospect for private sector sugar mills in the region, known for growing high quality cane suitable for sugar production.

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The districts are traditionally known for growing sugarcane because soil and climate in the region is suitable for this commercial crop.

Sugar mills in the region under the Sugar and Food Industries Corporation (SFIC) incur around Tk 50 crore losses every year due to alleged corruption, mismanagement, excess manpower and lower rate of production.

These problems can be overcome easily by private sector, they said.

Rangpur Chamber of Commerce and Industry (RCCI) President Mostafa Azad Chowdhury said the government recently allowed the private sector to set up 'refinery sugar mills'. But cane-based sugar mills are not allowed.

To set up refinery sugar mills, entrepreneurs will have to import raw materials from Singapore, Malaysia, and Thailand, he added.

"Such a decision will not benefit the people and the country."

Senior Vice President of RCCI Jahangir Alam said recurring losses by mills under the SFIC might have prompted the government to take such a decision.

"Rangpur Sugar Mills at Mahimaganj has been closed down and Shympur Sugar Mills in Rangpur is facing lay-off in the wake of continuous loss."

According to records with the Department of Agriculture Extension (DAE), about two lak hectares of land in eight northern districts are suitable for sugar cane cultivation.

Farmers in the region cultivated sugar cane in large quantities some years back.

But the areas under cane cultivation shrank drastically as they could not get fair price of their product because of losses loss by sugar mills.

Many of the farmers gave up profitable sugarcane cultivation and switched over to other crops.

Citing example in Singapore, Thailand and Malaysia, Azad said, alongside state owned mills, private sector sugar mills produce huge quantities of sugar in those countries and earn foreign exchange.

"We do not understand the logic for not allowing private sector sugar mills", he said.

Mostafa Ahmed, an Executive Committee member of RCCI, expressed the optimism that medium scale sugar mills in private sector will be profitable. This will also benefit thousands of farmers and employ as many people, he said.

An official of Shympur Sugar Mills on condition of anonymity disclosed that the country's 14 sugar mills might produce around 1.80 tonnes of sugar this year, which would be about 50,000 tonnes less than the target.

Huge quantities of sugar lies unsold in mills because of smuggling of cheaper Indian sugar. Production cost could be lesser in private mills, which would reduce the smuggling, he said.

Abdul Aziz, president of Kurigram Chamber of Commerce and Industry, said about six lak tonnes of sugar are imported annually.

If government allows setting up of cane-based sugar mills in the private sector, import can be reduced, he said.

Aziz also said private sector sugar mills are operating profitably in Thailand, Malaysia, and Singapore where labour costs are higher than in Bangladesh.