Govt shutting six sugar mills
Bangladesh Sugar and Foodstuff Sectors Corporation (BSFIC) has announced that it would close operations of 6 sugar mills on a bid to lessen losses, a maneuver that sparked outrage among the mills' workers.
However, the state-possessed sugar distributor still has nine different sugar mills where the displaced workers might be employed for the time being, explained BSFIC Chairman Sanat Kumar Saha.
Besides, the shuttered mills will undergo modernisation in a good bid to create them commercially viable once more, he said.
Following a government order in December 2, the BSFIC informed that production in six mills-Pabna Sugars, Shyampur Sugar, Panchagar Sugars, Setabganj Sugar, Rangpur Sugar, and Kushtia Sugar-would end up being halted until further find.
This resulted in protests from the employees of Pabna Glucose Mills, who staged a sit down on the Pabna-Rajshahi highway last Thursday.
Local police had to eventually intervene following the agitating crowd placed a fire before the factory's main gate.
"We have made a decision to close the mills for modernisation aswell as to reduce operational costs and minimise losses," stated BSFIC Chariman Saha.
However, he didn't divulge exactly what lengths the business expects its losses to drop following this move.
Saha did, however, claim that the BSFIC faces losses of Tk 937 crore normally each year.
Over the last five years, BSFIC incurred losses of Tk 3,976 crore. In fiscal 2019-20, the corporation registered a lack of Tk 970 crore.
The BSFIC also offers the liability of Tk 7,895 crore in loans and owes about Tk 521.76 crore as arrears to its workers.
Although the mills will remain closed for quite a while, the BSFIC will continue to pay the salaries and allowances owed to its employees, Saha said.
"They will likewise have the option to just work at our various other mills," he added.
Around 3,000 employees are employed by the 6 mills, which is modernised through a jv with Japanese and Thai traders.
These mills are about 60 years old but their economic lifespan ended at least 30 years back, in line with the BSFIC chairman.
Now, modernisation is required to ensure their professional viability, he said.
Under the jv, Thai Exim Bank and Japan Bank for International Cooperation (JBIC) will collectively invest Tk 5,000 crore to modernise the country's state-run glucose mills.
The two organisations have previously started a feasibility study on the project but progress has been slightly slow due to the ongoing coronavirus pandemic.
Meanwhile, another renowned organization located in Thailand, the Sutek Engineering Firm, provides the technology necessary to update and diversify the products of Bangladeshi sugars mills.
As per the brand new plan, the BSFIC might produce liquor, bio fertilisers and energy as by-goods of their regular procedures.
"Now, negotiations on modalities of implementation will be ongoing," Saha said.
The BSFIC chairman also said that foreign investors will introduce high yielding sugarcane plants to local farmers so that they are able to supply enough recycleables to help make the mills profitable again.
Saha went on to make sure that although Japanese and Thai shareholders would operate the mills, they might still employ the existing workers.
The BSFIC emerged as an individual corporate body in 1976 carrying out a merger between your Bangladesh Sugar Mills Corporation and Bangladesh Meals and Allied Industries Corporation.
In fiscal 2018-19, the BSFIC produced about 68,952 tonnes of sugar at its 15 mills. Of this stock, roughly 59,824 tonnes have already been sold so far.
The federal government established the organisation so that you can help build-up the countrywide economy through the implementation of an commercial policy, where the plan was to make quality substitutes designed for imported products like glucose.
Dilip Kumar Sarker, managing director of Shyampur Sugar Mill, said he received a notice that ordered the mill's closure for all of those other current fiscal year.
According to the managing director, a complete of 762 staff members, including both the temporary and permanent ones, just work at his mill, which functions about 1,000 tonnes of sugarcanes daily.
Md Rakibur Rahman Khan, managing director of Kushtia Glucose Mills, echoed the same.
Around 992 employees work at this mill, which has an twelve-monthly sugar production potential of around 15,000 tonnes, he said.
Khan also informed that the notice he received directed his mill to gather sugarcane from farmers to supply to three other close by mills.
"But there is no direction about the salary and allowance of the personnel," he added.
The six mills collectively faced about Tk 380 crore in losses going back fiscal year.
Pabna Sugar lost about Tk 76 crore while Shyampur Sugars incurred losses of Tk 59 crore, Panchagar Glucose Tk 47 crore, Setabganj Sugar Tk 84 crore, Rangpur Glucose Tk 53 crore, and Kushtia Sugar Tk 61 crore.
