# Bangladesh Government Initiates Reopening of Closed Sugar Mills to Enhance Production

*The government of Bangladesh has initiated steps to reopen closed state-owned sugar mills to increase production and generate employment opportunities.*

August 15, 2026 · business

In a bid to enhance sugar production and stimulate economic activity, the Bangladesh Sugar and Food Industries Corporation (BSFIC) has announced government initiatives to reopen all closed state-owned sugar mills. BSFIC Chairman Advocate Md Shamchuzzaman Suroj revealed this in an exclusive interview with Bangladesh Sangbad Sangstha (BSS) at the BSFIC headquarters in Dhaka recently.

Under the directives of Prime Minister Tarique Rahman, the government is committed to ensuring that no industrial establishment remains closed. Consequently, efforts are being made to gradually bring all closed government sugar mills back into operation. Currently, six out of the country's 15 state-owned sugar mills have suspended crushing operations, although sugarcane cultivation continues in the areas under these mills.

Suroj emphasized that the government is working to gradually restore full-scale production in these mills while encouraging private entrepreneurs to invest in the sector. "The Prime Minister's directive is to keep the wheels of all factories running. BSFIC is therefore working to attract new investment," he said. The reopening of these mills is expected to create employment, increase production, and accelerate economic activities in the surrounding areas.

Highlighting the social importance of the sugar mills, Suroj noted that these facilities are not just centers of sugar production but also provide livelihoods for millions of sugarcane farmers. They play a crucial role in the rural economy and local social development, contributing to public welfare by operating hospitals, educational institutions, and developing infrastructure in surrounding areas.

The BSFIC chairman also discussed the potential for energy savings in the sugar mills. He mentioned that operating factories with state-supplied electricity used to cost around Tk 35 lakh per day, but this cost is being reduced through in-house power generation. Future plans include generating electricity through co-generation using sugarcane bagasse and supplying the surplus power to the national grid.

Addressing the issue of losses incurred by state-owned sugar mills, Suroj identified interest on loans and the "trade gap" as major factors. He noted that private-sector enterprises often receive facilities such as interest waivers, which state-owned sugar mills do not always benefit from. "We will approach the government to take necessary measures in this regard," he said. Suroj claimed that excluding loan interest and duties, BSFIC's actual operational losses are not significant.

To reduce losses and encourage sugarcane cultivation, the corporation has taken several initiatives. The price of sugarcane was raised from Tk 600 to Tk 625 per quintal in the last fiscal year, while the amount of incentives for farmers was increased from Tk 6 crore to Tk 11 crore. A pilot project at Mobarakganj Sugar Mills has successfully implemented a digital payment system for farmers, enabling immediate settlement through mobile transactions.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/govt-moves-revive-closed-sugar-mills-bsfic-chairman