Govt to reopen closed sugar mills: BSFIC
The government has initiated a comprehensive plan to reopen closed state-owned sugar mills across Bangladesh, aiming to boost domestic production, lower operational losses, and create fresh employment opportunities, according to top corporation leadership.
Speaking in an exclusive interview at the BSFIC headquarters, Bangladesh Sugar and Food Industries Corporation Chairman Advocate Md Shamchuzzaman Suroj stated that the drive aligns directly with high-level government policy.
He emphasized that under the directives of Prime Minister Tarique Rahman, no industrial establishment will be kept closed, and steps are being taken to gradually reopen all closed government sugar mills while actively inviting private entrepreneurs to join through strategic investments.
Currently, six out of the country’s 15 state-owned sugar mills have suspended crushing operations. However, sugarcane cultivation has continued uninterrupted in those mill zones, preserving the raw material base required for a full recovery.
Beyond sugar production, these facilities serve as vital rural hubs, supporting millions of sugarcane farmers while running local hospitals, educational institutions, and infrastructure.
To tackle deep-seated operational losses, BSFIC is addressing key cost drivers primarily heavy loan interest burdens and the trade gap.
Excluding debt service and tax duties, actual production losses remain minimal, with BSFIC contributing roughly Tk 213 crore to the national exchequer in excise duty, taxes, and VAT last fiscal year alone.
To improve financial performance, the corporation is implementing several key operational shifts.
In-house power generation has cut reliance on grid power, which previously cost up to Tk 35 lakh daily per factory, with plans now underway to generate electricity using sugarcane bagasse and supply surplus energy to the national grid.
Meanwhile, sugarcane purchase prices were raised from Tk 600 to Tk 625 per quintal last fiscal year, with total farmer incentive funds expanding from Tk 6 crore to Tk 11 crore.
Following a successful pilot at Mobarakganj Sugar Mills, farmers now receive immediate mobile payments upon weighing their crops to eliminate bureaucratic delays.
Additionally, BSFIC sugarcane fields absorb approximately 66,045 tonnes of carbon annually, offering significant ecological benefits alongside economic ones.
