Govt plans industrial parks on unviable sugar mill sites, eyes sugar beet-based production
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The government is planning to transform unviable state-owned sugar mills into industrial parks and gradually shift towards sugar beet-based production as part of efforts to make the sugar industry economically sustainable, Commerce, Industry, and Textiles and Jute Minister Khandaker Abdul Muktadir said on Wednesday.
Speaking as the chief guest at a seminar titled “National Budget 2026-27: Expectations and Achievements of the SME Sector” organised by the SME Foundation and the Economic Reporters’ Forum (ERF) in the capital’s Paltan area, the minister said the existing sugar mill model is no longer viable under current economic and agricultural realities.
“There are 15 sugar mills in the country, of which nine are operational and six remain closed,” he said.
Mr Muqtadir noted that even the state-owned Keru & Company remains profitable primarily because of its distillery operations rather than sugar production.
“These mills were established 60 to 70 years ago. The realities of that period are very different from those of today,” he added.
Highlighting the limitations of sugarcane cultivation, the minister said a sugarcane crop takes around 14 months to mature, while the mills operate for only about three months using the harvested cane.
“Maintaining a factory for year-round operations when it can run for only three months is no longer economically feasible,” he said.
He also questioned the efficiency of dedicating agricultural land to sugarcane cultivation for more than a year when multiple crops can now be grown on the same land annually.
As part of the government’s reform plans, Mr Muqtadir said some existing sugar mills would be converted into sugar beet-based mills.
According to him, the current sugar recovery rate from sugarcane in Bangladesh is around 5.0 per cent, compared with the global average of 10 per cent. In contrast, sugar beet can yield around 15 per cent sugar, while requiring only four-and-a-half to five months to cultivate.
“This allows farmers to grow other crops on the same land during the remaining period of the year,” he said.
The minister further said industrial parks would be developed on large tracts of unused land belonging to certain sugar mills to attract new investments and generate employment.
“We are preparing attractive packages, including energy support and other incentives, for potential investors. The objective is not necessarily to continue the old factories but to create new industries and jobs,” he added.
Referring to state-owned fertiliser factories, Mr Muqtadir said those plants are highly profitable but often remain idle because of gas shortages, forcing the country to import fertiliser with valuable foreign exchange.
To address the issue, the government is considering establishing a dedicated gas supply network exclusively for fertiliser factories, he said.
“If successful, the factories will be able to operate throughout the year, significantly reducing the need for fertiliser imports,” the minister added.
He also indicated that a similar investment-friendly approach would be pursued in the steel and engineering sectors.
Among others, Barrister Mutasim Billah Faruqui, Member (Tax Policy) of the National Board of Revenue (NBR), and Anwar Hossain Chowdhury, Managing Director of the SME Foundation, attended the event as special guests. ERF President Doulot Akter Mala chaired the seminar, while General Secretary Abul Kashem moderated the session.