Rangpur Sugar Mills Ltd in Gaibandha’s Gobindaganj upazila has unsold stocks of more than 3,000 tonnes of sugar worth nearly Tk160.5m.
The mill in Mohimaganj has suffered substantial losses as large quantities of sugar have been wasted, with bags of sugar melting in storage.
Sources said in 2012-2013, the mill produced 2,737 tonnes of sugar from 49,375 tonnes of sugarcane. 530 tonnes produced the previous year was also unsold and stored in the mill’s warehouse.
The mill had agreements with 15 dealers who would buy sugar produced by the mill for Tk50 per kg. However, the dealers failed to do so throughout the year because they were unwilling to incur losses.
A mill official attributed the dealers' unwillingness to buy the produce to the low prices of imported sugar relative to sugar produced locally.
On condition of anonymity, a dealer said they decided not to buy the mill’s sugar to avoid losing money in the deal because the difference in prices between the mill’s sugar and imported sugar was substantial.
For instance, the price of one kilogram of “Teer” brand sugar is Tk44/45 in the market, but the sugar mill charges dealers a higher price of Tk50, said the dealer.
Consequently, Rangpur Sugar Mills was finding it difficult to give employees their wages, said the mill official, who added that many local sugarcane farmers who had sold their produce to the mill last season had not been paid either, leading to dissatisfaction and frustrations with the mill’s authorities.
Farmer Jahed Miah said if farmers were not paid what they were owed, there might be long term repercussions for the mill because in coming seasons farmers may choose not to cultivate sugarcane.
Abdul Khaleque, the mill’s managing director said if the warehouses are not emptied of stored sugar there would not be any space to store this year’s produce.
The mill’s employees have urged the authorities to seriously consider reducing the price so that the stockpile can be sold without incurring further losses.