Finance and planning adviser Mirza Azizul Islam said Saturday privatisation is the only key to survival of the state-owned sugar mills as it has not been possible for them to overcome the chronic losses incurred under public management
"The state-owned sugar mills will not be profitable under the public management because of inefficiency," he said while speaking at a discussion on development of the country's northern region.
The finance adviser said:" Only privatisation of the state-owned sugar mills can pave the way for survival of the local sugar industry."
Organised by the North Bengal Development Committee at the city's CIRDAP auditorium, the forum demanded changes in duty structure on imported sugar as a safeguard measure to protect the sugar industries mostly located in the country's northern region.
The finance adviser, however, turned down the demand saying it was not a viable option as the public sugar industries have been meeting only 10 per cent of the annual domestic demand.
The proposed duty structure for per tonne of imported refined sugar is Tk 6,000 and that is higher by Tk 1000 from the outgoing fiscal duty. The duty for per tonne raw sugar remained unchanged at Tk 4000.
"I can't affect 90 per cent of the supply," he said, adding that the duty advantage for the public mills will bring disparity in the market and increase further inefficiency in the state-owned mills.
Apart from sugar, the finance adviser also focused on the proposed budgetary measures to curb soaring inflation, regional disparity and latest price hike of fertiliser.
He said the price of fertiliser in the local market is still lower than the international market despite 100 per cent upward price adjustment of the item.
"The government will have to provide more than Tk 30 subsidy for per kg of urea despite the readjustment," he said, adding that a higher subsidy was not possible for the government to bear.
He said the general inflation has been projected at 9.0 per cent in the next fiscal which is reasonable amid high global inflation that even affected food surplus nations like India.
"Inflation has reached seven years high in India at 8.5 per cent that I read in the Financial Express," he said.
In the backdrop of such volatility, the finance adviser said proposals for duty withdrawal on many imported consumer items have been proposed to stabilise the already heated market.
Besides, incentives have been proposed to encourage the farmers to grow more food, which will help the country to keep the inflation within the projected level, he said.
The finance adviser said the present caretaker administration admitted the existence of regional disparity and has already taken initiatives to ensure equal development in all the regions.
A committee formed in this connection in the past finalised its recommendations to end the regional disparities, he said, adding that the implementation of the recommendations would be started soon.
He hoped that the next elected government would continue the programme.
The finance adviser said initiatives to open a full fledged university in Rangpur and re-establishment of a medical college in Pabna have already been taken as part of speedy development of the northern region.
