Country's private sugar refiners want to export 1.85 million tonnes of sugar which remains unsold after meeting domestic demand aiming to earn foreign currencies worth Tk 80 billion, officials said.
Some seven international standard sugar refineries have already been set up in the country of which five are in operation with an annual production capacity of 3.45 million tonnes against the domestic demand of 1.7 million tonnes per year, they said.
On the other hand, production capacity of the state-run Bangladesh Sugar and Food Industries Corporation (BSFIC) is 100,000-150,000 tonnes, according to the Bangladesh Sugar Refiners Association (BSRA) data.
More than 3.55 million tonnes of sugar is produced through public and private initiatives a year, BSRA statistics said.
"There is possibility of exporting the rest 1.85 million tonnes of sugar that remains surplus after meeting the local demand and it is possible to earn foreign currencies worth Tk 80 billion annually through such export," an industry insider said.
The government had permitted the refiners to export 262,000 tonnes of sugar, ending a two-year ban on sugar export through issuing a circular in October, 2012 following request from the refiners.
The private refiners were permitted to export 212,000 tonnes while the BSFIC 50,000 tonnes of sugar.
Commenting on the issue, BSRA Secretary General Golam Rahman said the five private sugar refineries had been facing a large amount of loss during four fiscal years (FYs). The amount of losses stood at more or less Tk 22 billion since FY 2010-11 until the outgoing FY, 2013-14.
"There is an unhealthy competition in the local sugar market among sugar traders. As a result, we are making losses. On the other hand, some refiners have become defaulters to different banks," he said.
The refiners now demand of the government to extend the loan repayment period for adjusting the losses. The period might be from 15 years to 20 years, he added.
Besides, private refiners are incurring losses as they produce more sugar than demand, he said.
The loss is incurred due to excess production compared to local demand and decreased prices of raw sugar in the international markets, the industry insiders said.
"More or less 1.5 million tonnes of refined sugar remain unsold as private refiners are incurring losses," they said.
In this circumstance, the country can earn a large amount of foreign currencies, if the government helps get duty-free facility to the international markets and allows subsidy to sugar export, Mr Rahman said.
Meanwhile a ministry of commerce (MoC) official said the BSRA has sought cooperation from the Prime Minister to export sugar to China under duty-free facility.
The refiners have recently sent a letter to the Prime Minister in this connection.
As the price of refined sugar in the country is less than that of international markets, the sugar mills are facing trouble for not getting a fair price of their produce. They are even failing to pay salaries to their factory staff on time, the letter said.
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