Ministry proposes 22pc hike in procurement price of sugarcane

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Doulot Akter Mala
The industry ministry has proposed a 22 per cent hike in procurement price of sugarcane for the upcoming crushing season with a view to encouraging farmers to cultivate the crop in increased volume to help meet the domestic demands for sugar.
The ministry has set per quintal sugarcane price at Tk 214 at the mill gate and at Tk 206 in outstation procurement centres for 2010-2011 crushing season against Tk 175 and Tk 172 respectively in the current season.
The sugarcane crushing season begins in November and ends in March.
The ministry has proposed the procurement prices in the draft of 'Sugar Industry and Sugarcane Policy' for 2009-2010' which will be finalized soon.
Country's annual demand for sugar is around at 1.4 million tonnes, while the government-owned sugar mills can supply only 0.15 million tonnes. The gap is met through import.
In the policy, the ministry has set the sugar procurement target at 101,525 tonnes in the 2009-2010 season crashing 13, 30,000 tonnes sugarcane.
The draft policy has urged the government to allow Bangladesh Sugar and Food Industry Corporation (BSFIC) to seek financial assistance from banks for the time being which will be paid after selling the produced sugar.
More than 0.6 million farmers of northern and western districts are dependent on this important cash crop, but farmers are losing interest to cultivate the crop due to absence of proper policy, an official said.
They are not getting fair price from mills when the production cost is rising sharply. The draft policy proposed fixation of higher price to help the deprived farmers and encourage them cultivate more sugarcane, he said.
It is necessary to increase prices of sugar in line with the other agricultural products, he added.
There are 15 state-owned sugar mills that can crash 21,044 tonnes sugarcane per day. The mills can produce 0.2 million tonnes sugar annually.
"Sugar mills can utilize only 38 per cent of its capacity due to inadequate sugarcane production. Farmers found the crop non-profitable for its low price," the official said.
The BSFIC incurred a loss worth Tk 2.35 billion in 2008-09 fiscal as it had missed sugar production target for the year, he said.
Recovery rate of sugarcane is 7.0-8.0 per cent at the moment. The rate should be raised immediately to salvage the local sugar mills, he said.
The recovery rate in Thailand, India and Pakistan produce 9.50-11 per cent, he added.