Shah Md. Faruk Hossain, Madhukhali :
Faridpur Sugar Mill, located on 129.97 acres of land near the Dhaka-Khulna Highway in Madhukhali Upazila, Faridpur district, has incurred losses amounting to over Tk 1,000 crore since its establishment in 1974.
Despite its struggles, stakeholders believe the mill can turn profitable with proper planning and innovative strategies.
The mill, set up with Dutch financial assistance at a cost of Tk 1,497.86 lakh, began commercial production in 1977-78, with an annual target of producing 10,160 metric tons of sugar from 1016 metric tons of sugarcane daily.
Initially, the mill performed well, recording its highest sugar production of 16,828.70 metric tons in the 1994-95 season and achieving its peak sugar recovery rate of 8.42 per cent in 1989-90.
However, the decline in sugar prices and the rising costs of raw materials and production inputs gradually led to financial losses. Out of 47 operational seasons, only 10 were profitable, with the mill accumulating losses in the remaining 37 seasons.
The mill’s contributions, however, remain significant. It has deposited approximately Tk 7,000 crore in government revenue, including excise duty, VAT, and income tax, and played a crucial role in developing local infrastructure, including roads, bridges, culverts, schools, and markets.
The current Managing Director, Md. Saifullah, shared that losses are gradually decreasing. The mill’s losses stood at Tk 55 crore in the 2021-22 fiscal year, which reduced to Tk 49 crore in 2022-23 and further to Tk 45 crore in 2023-24.
In the 2023-24 sugarcane threshing season, the mill processed 50,040 metric tons of sugarcane, producing 2,333 metric tons of sugar with a recovery rate of 5.19 per cent.
For the 2024-25 season, the target is to process 65,000 metric tons of sugarcane and produce 4,095 metric tons of sugar with an estimated recovery rate of 6.30per cent.
