Local refiners find niche in world sugar market
Thursday, 17 September 2009
Jasim Uddin Haroon
Bangladesh is going to add just another item to its export basket as the country's private sector sugar refiners have found markets abroad, thanks to a slump in production in India, a major world supplier.
Local entrepreneurs said they are close to striking deals with some European and Middle East countries for supplying refined sugar.
There are six refineries in the country and their capacity is 1.8 million tonnes per year against the domestic demand for 1.2 million tonnes.
Besides, S Alam Refinery, installed in Chittagong with an annual capacity of 300,000 tonnes, is likely to go into production soon.
There are also 14 sugar mills under the state-owned Bangladesh Sugar and Food Industries Corporation (BSFIC) with a production capacity of 125,000 tonnes. But this season they produced only 80,000 tonnes.
One local sugar refiner said it has already negotiated supply of 12,000 tonnes of crystal sugar to Poland while another is negotiating with some other buyers.
Golam Mustafa, chairman of Deshbandhu Sugar Refinery, told the FE: "I have already completed procedures to export 12,000 tonnes of sugar to Poland, which offers duty-free access."
He also claimed that the United Arab Emirates and Yemen wanted to buy 4,000 tonnes each this year.
The local sugar refineries were mostly set up during 2006 and Deshbandhu is the pioneer in the sector. It has set up the refinery at the premises of Narsingdi's ageing Deshbandhu Sugar Mill, which was returned to its owner under the government's privatisation policy.
Bangladesh is going to add just another item to its export basket as the country's private sector sugar refiners have found markets abroad, thanks to a slump in production in India, a major world supplier.
Local entrepreneurs said they are close to striking deals with some European and Middle East countries for supplying refined sugar.
There are six refineries in the country and their capacity is 1.8 million tonnes per year against the domestic demand for 1.2 million tonnes.
Besides, S Alam Refinery, installed in Chittagong with an annual capacity of 300,000 tonnes, is likely to go into production soon.
There are also 14 sugar mills under the state-owned Bangladesh Sugar and Food Industries Corporation (BSFIC) with a production capacity of 125,000 tonnes. But this season they produced only 80,000 tonnes.
One local sugar refiner said it has already negotiated supply of 12,000 tonnes of crystal sugar to Poland while another is negotiating with some other buyers.
Golam Mustafa, chairman of Deshbandhu Sugar Refinery, told the FE: "I have already completed procedures to export 12,000 tonnes of sugar to Poland, which offers duty-free access."
He also claimed that the United Arab Emirates and Yemen wanted to buy 4,000 tonnes each this year.
The local sugar refineries were mostly set up during 2006 and Deshbandhu is the pioneer in the sector. It has set up the refinery at the premises of Narsingdi's ageing Deshbandhu Sugar Mill, which was returned to its owner under the government's privatisation policy.