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Problems and Prospect of Sugar Industry in Bangladesh

S. M. I. Hossain
Associate Professor
Bangabandhu Agricultural University, Shalna, Gazipur, Bangladesh

M. A. Zaman
Professor
Department of Farm Power and Machinery, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

M. A. Rabbani
Lecturer
Department of Farm Power and Machinery, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

M. S. Hossain
MS student
Department of Farm Power and Machinery, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

The problems and prospect of the sugar mills as well as the sugarcane growers are presented in this paper. Three sugar mills and 102 sugarcane growers within the selected mill zones were interviewed to find out the problems and prospects of sugar industry in Bangladesh. About 1.0 million metric tonnes sugar is required annually for domestic consumption, but the sugar mills can meet only 1/5 of this requirement. The sugar mills are facing lots of problems for which they cannot reach the target production level. The major problems are poor management and finance; inadequate supply of sugarcane; supply of poor quality cane with low sugar content; low recovery of sugar by the old machines; and lack of commitment and corruption of the mill stuff. The growers on the other hand have many problems and limitations for production of quality sugarcane and supply these canes to the mills. The major problems mentioned by the growers are the corruption of mill stuff; delay in taking delivery of canes at the mill gate and delay and irregular payment of the bills; taking bribes by the corrupted stuff to procure canes from the growers and for payment of bills; offering low price even if the they supply good quality canes. Sometimes the growers do not get the timely supply of inputs and loans. For all these problems of both the mills and the growers, sugar industry is at the point of threat recurring heavy financial losses. Sugar industry can be made profitable and may have better prospect in Bangladesh through adoption of stringent policy and programs like strong management to stop corruption, replacement of old machinery, effective training of the mill technicians, training and support to the growers, etc.

Keywords: Sugar industry, Sugarcane, Problems, Prospect

Location:

Start Date:

End Date:

Program Area: Resource Development and Management

Commodity: Product development

Objectives:

To identify the problems and prospects of sugar mills, sugarcane growers and the sugar industry as a whole so as to suggest some measures to be undertaken to brighten the prospect of sugar industry in Bangladesh.

Methodology:

This study is a post facto survey type research. It was designed to identify the problems of sugar industry and the sugarcane growers and also policy issues and action programs of the government. Data were collected through a questionnaire for both sugar industries and sugarcane growers. Sugarcane is a round the year crop. It is generally planted within October to December and harvested after 12-15 months of plantation. Data were collected from December 2003 to February 2004; the data collection was conducted just after harvesting of sugarcane. On the other hand the data of sugar mills were collected just after production season of sugar. Sample survey technique was followed for this study and for drawing sample multi-stage systematic proportionate random sampling method was followed. Out of the fourteen sugar mills three sugar mills were selected. Under each sugar mill zone one village was taken in which 34 sugarcane growers were selected randomly. Thus from three mills zone a total of 102 sample growers were selected and interviewed. Data were collected from the sugarcane growers and from five departments of each mill such as Factory, Cane Development, Repair and Maintenance, Accounts and Administration departments by using personal interview schedules. Data collected were analyzed using personal computer (PC). Numeric data were analyzed for range, mean, standard deviation, etc., using Microsoft Excel. The non-numeric data were summarized and tabulated using Microsoft Word.

Source of Information: Progress. Agric. 17(1) : 283-293, 2006; ISSN 1017-8139

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The sugar mills are facing lots of problems for which they cannot reach the target production level. The major problems are poor management and finance; inadequate supply of sugarcane; supply of poor quality cane with low sugar content; low recovery of sugar by the old machines; and lack of commitment and corruption of the mill stuff. The growers on the other hand have many problems and limitations for production of quality sugarcane and supply these canes to the mills. The major problems mentioned by the growers are the corruption of mill stuff; delay in taking delivery of canes at the mill gate and delay and irregular payment of the bills; taking bribes by the corrupted stuff to procure canes from the growers and for payment of bills; offering low price even if the they supply good quality canes. Sometimes the growers do not get the timely supply of inputs and loans. For all these problems of both the mills and the growers, sugar industry is at the point of threat recurring heavy financial losses. Sugar industry can be made profitable and may have better prospect in Bangladesh through adoption of stringent policy and programs like strong management to stop corruption, replacement of old machinery, effective training of the mill technicians, training and support to the growers, etc.

Knowledge Management: Journal