February 24, 2021, 8:06 pm
Maherabbin Sunvi, Chuadanga: Keru & Company, one of the leading sugar mills in the country, is counting huge losses in the sugar production sector. However, the surplus of profit from sugarcane by-products is increasing every year. Although the sugar production sector has incurred a loss of Tk 70 crore 77 lakh 44 thousand this year, other departments are compensating it. As a result, Darshana Keru Sugar Mill in Damurhuda Upazila of Chuadanga is also making profit by giving revenue to the government.
Like every time in the last financial year, the profit of this sugar mill has been Tk. 153 crore. Despite depositing Tk 65 crore in the government’s revenue sector, the three departments of the mill made up a loss of Tk 75 crore and the main profit stood at around Tk 14 crore.
The Bangladesh Sugar and Food Industries Corporation sets the target for sugarcane threshing and sugar production every year. In the 2018-19 planting season, just as the target was not achieved, the threshing has also come down. Although instructions were given to produce 8025 metric tons of sugar by threshing sugarcane on 375 acres of land in 90 threshing days, the target was not achieved. As a result, in the 2019-20 financial year, the loss of Keruj Sugar Factory has been calculated at Tk 70 crore 77 lakh 44 thousand.
According to sugar mill sources, 9,195 metric tons of stocks were added in 2018-19 and 5,143 metric tons produced in 2019-20 were added. At present, the mill has a stock of 4,547 metric tons of sugar till the 20th of last month. The value of which is 27 crore 28 lakh 80 thousand Tk. In all, the sugar factory has incurred a loss of 70 crore 77 lakh 44 thousand Tk.
Although there are 9 farms of the sugar mill, the losses have to be calculated from most of the farms every year. In the 2018-19 financial year, the loss on 9 farms has been calculated at Tk 4 crore 22 lakh. In all, in the fiscal year 2019-20, the loss of sugar, fertilizer and farm in the five divisions of Keru & Co. was Tk 75 crore 94 lakh.
Meanwhile, profits have been earned from the distillery and biofertilizer department. 48 lakh 66 thousand propellers produce domestic and foreign wine. The distillery has earned a profit of Tk 153 crore. The production of vinegar in biofertilizers has earned a profit of Tk 32 lakh 88 thousand, while the production of hand sanitizers has earned a profit of Tk 12 million.
From the total profit earned, the government had to deposit Tk 65 crore in the revenue sector in the VAT and customs sector in this financial year. Out of the remaining profit of Tk 88 crore 39 lakh 29 thousand, losses of sugar, farms and fertilizer factories have been borne by Tk 75 crore 94 lakh. With the government’s revenue, even after compensating the losses of the three departments, the main profit in the fiscal year 2019-20 has been Tk 13 crore 82 lakh.
Shahab Uddin, Manager (Administration) of Keru Sugar Mills, said that Keru & Co. does not have to count losses at any time. Even if there is loss in sugar, fertilizer and farm, it is compensated by the distillery and biofertilizer department. This year too, after paying the government’s revenue, a profit of around Tk 14 crore has been achieved. The cost of production is higher than the production of sugar mill due to long-term wear and tear. As a result, sugar production is reduced due to non-discharge of whole juice from sugarcane.
Gias Uddin, manager (agriculture) of Keru & Co., said the reason for the farm’s losses was that the farms had extra manpower and there was an increase in costs. From there, 70 to 80 guards have been retrenched. The farms are being cultivated under their own supervision. There will be no more losses from here in future. It is hoped that the profit will come from here in the next financial year.