Bangladesh’s state-run sugar mills have recorded a combined net loss of Tk 5.08 billion in FY 2023–24, marking the fifth consecutive year of heavy deficits despite repeated cost-cutting measures, official data shows.

The losses, disclosed in the Bangladesh Sugar and Food Industries Corporation’s (BSFIC) latest financial statement, are slightly below the Tk 5.56 billion shortfall in the previous year and far lower than the Tk 10.36 billion peak in FY 2020–21 — the year after six of 15 mills were shut for “modernization”.

Obsolete machinery, overstaffing, and low-yield sugarcane remain key drags. While the global sugar recovery rate averages 10–12%, Bangladesh’s mills achieve just 5.5–6%. Production costs stand at Tk 260 per kg, but BSFIC sells at Tk 125, losing Tk 135 per kg. Private brands sell for Tk 110–115, further eroding demand and leaving nearly 35,000 tonnes of unsold stock as of August 2025.

Among nine active mills, Rajshahi Sugar Mills posted one of the biggest losses at Tk 66 crore. North Bengal Sugar Mills reduced its losses to Tk 38 crore from Tk 113 crore in FY 2020–21, while Mobarokganj’s losses rose to Tk 70 crore. Carew & Company was the only profitable entity, posting Tk 85 crore in earnings — all from its distillery business — while its sugar unit lost Tk 60 crore.

BSFIC officials have proposed selling surplus sugar through state-run distribution channels to cut losses. Despite financial woes, the industry sustains 60,000–70,000 acres of sugarcane cultivation annually, supporting rural livelihoods and aiding climate resilience.