The government plans to privatize struggling state-owned sugar mills, mirroring the strategy applied to jute mills, following a directive from the prime minister. State-owned sugar mills, burdened with Tk9,291 crore in bank loans and Tk5,300 crore in accumulated losses, produce costly sugar at Tk300 per kg, eight times higher than Brazil and India. Six of fifteen mills were shut down in 2020 due to heavy losses. Despite efforts to revive them, production remains low at 21,313 tonnes in FY23. High production costs, operational inefficiencies, and competition from private refineries importing cheaper raw sugar contribute to losses. Six private sector companies dominate the market, profiting from imported raw sugar refining. The government’s attempt to stabilize sugar prices amidst volatile market conditions involves slashing duties. Privatization is seen as a solution, though industry officials express hope for revival through increased sugarcane production and modernization initiatives.
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