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March 31, 2000

A large quantity of sugar will have to be imported this year as the country's sugar mills have failed to achieve the target of production due to short supply of sugarcane.

 

All 15 sugar mills have already stopped this year's production target in the current season (October 1999 - April 2000) for the state-owned sugar mills was fixed at 173,800 tones. But only 123,000 tones were produced.

 

The country's annual requirement of sugar is estimated at about 400,000 tones. The government has decided to import sugar to meet the deficit of 277,000 tones.

 

The Bangladesh Sugar and Food Industries Corporation (BSFIC), which runs the sugar mills, has been asked to import 75,000 tones of sugar while the Trading Corporation of Bangladesh (TCB) will import 100,000 tones.

 

"More sugar will be imported to meet the demand and keep its price steady", said an official of the Ministry of Industries.

 

Asked about shortfall in production, the official said, the supply of sugarcane at the mills was not enough. "over 22 lakh tones of sugarcane were expected to be crushed at the mills, but only 16 lakh tones were available."

 

Explaining the reasons for the short supply of sugarcane, the official said the growers were not keen to sell the canes to the mills because they got higher price from the producers of gur or molasses this year.

 

The price offered by the mills for a maund of sugarcane is Tk 37,50 to Tk 40 while the gur producers bought a maund of sugarcane at the rate of Tk 50 to 60.

 

Beside, the cultivation of sugarcane this year was also less than in the previous year resulting in greater demand for the crop.

 

The BSFIC had faced a similar problem due to the short supply of sugarcane in 1984-1985, 1985-1986 and 1988-1989.

 

In 1984-1985, about 88,000 tones of sugar were produced against the target of 115,000 tones while in the following year 82,498 tones were produced against the  target of 120,000 tones. In 1988-1989, the target was 179,520 tones but 110,000 tones of sugar were produced.

 

Source: The Independent

 


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