November 17, 2016 (Sugaronline) | https://goo.gl/NoQGDJ
For each kg of sugar, Rangpur Sugar Mills in Gaibandha incurs a loss of at least BDT100 (US$1.26), according to Bangladesh's Business24.
The production cost of per kg of sugar at the state-run mill is around BDT160. Sometimes, the cost becomes higher but the selling price is fixed at BDT60, said Abdul Awal, its managing director.
So, the government has to give a huge amount of subsidy every year to run the mill at Mohimaganj in Gobindaganj upazila.
In the face of losses, the government temporarily shut down the mill in 2004.
The same year, the mill authorities leased out most of the land of its sugarcane farm in Shahebganj for cultivation of crops like rice, wheat, mustard, tobacco and maize in violation of the 1962 agreement between the deputy commissioner's office and the then Pakistan Industrial Development Corporation.
The DC office signed the deal on behalf of the land owners - the local Santals.
The deal stated that the land was acquired for cultivation of sugarcane by the mill authorities. If the land was used for farming any other crop, the corporation will surrender the land to the government (the DC office).
After learning about the cultivation of other crops, the indigenous people protested the move by the mill authorities and demanded their land back. Some six months ago, they started to erect houses on the land.
However, the local administration carried out drives recently and evicted some 1,500 Santal families from their ancestral land.
During the eviction, a clash broke out between the indigenous people and mills labourers along with the police on November 6. The law enforcers opened fire that day, killing two Santal men.
Since the eviction, the Santals have been living in the open.
Awal, the MD, said it was not possible for the mill to make any profit due to the higher production cost of sugar as the government has to buy sugarcane at a high price.
He also said the mill set a target to produce 2,800 tonnes of sugar this year.
After its reopening in July 16, 2006, the sugar mill, established in 1954, remained operational for just 33 days, producing 5,315 tonnes of sugar, in 2007/08, shows the annual report of the industries ministry (2014/15).
In 2015/16, the mill was in operation for only 19 days. It produced 950 tonnes of sugar then, Abdul Matin, president of Rangpur Sugar Mills Workers Union, told The Daily Star.
Till 2014 after its reopening, the sugar mill incurred losses as it could not a sell a huge amount of sugar due to lower sugar prices in local markets. So, it had to stock them.
However, the mill has started to sell sugar from its stock recently after sugar prices in the markets increased.
"We have sold almost all the sugar from our stock. Currently, we have just 1,300 tonnes of sugar there," said Awal.
Every year, the country requires some 1.4 million metric tonnes of sugar. But 15 state-run sugar mills produce only 21.04 million tonnes of sugar, shows the industries ministry report.
Rangpur Sugar Mills, situated on 326 acres of land, incurred losses in maximum of its 58 years, said its officials.
Since its inception, the mill has run with debt while irregularities and corruption crippled its production. As the mills authorities failed to pay the cane growers their outstanding payments and the mills workers their wages, the industries ministry shut it down on March 31, 2004.