Bangladesh Sugar and Food Industries Corporation (BSFIC) incurred a loss of around Tk 39.39 billion in the last five years.
It earned Tk 31,472,200,000 and spent Tk 70,860,200,000 during the period, according to a report placed before a meeting of the Parliamentary Standing Committee on Industries Ministry on Thursday.The report identified eight reasons behind the losses.
The reasons include lower selling price than the production cost of sugar, a decline in global sugar prices, higher debt and interest rates, higher sugar content, lack of development of insect-resistant sugarcane varieties, old and dilapidated factories, importing raw sugar by private sector and producing refined sugar from sugar at low prices, mismatch between the prices of sugarcane and sugar, rising interest rate on loan as well as rising production cost and declining sugar collection rate. The BSFIC incurred a loss to the tune of Tk 5.26 billion in 2015-16 fiscal year while Tk 6.39 billion in 2016-17, Tk 8.33 billion in 2017-18, Tk 10.06 billion in 2018-19 and Tk 9.34 billion in 2019-20 financial year, according to the report.
Committee members, including Industries Minister Nurul Majid Mahmud Humayun, AKM Fazlul Haque and Abu Reza Muhammad Nezamuddin were present at the meeting held with its Chairman Amir Hossain Amu in the chair.