Sugarcane production and sugar trade

Ashok Larma of Kancharipara in Latiban Union of Khagrachari cultivates sugarcane next to his house. Ashok Larma has been cultivating sugarcane for the past four years.

Ashok Larma stated, "Since the last twelve to thirteen years, many people have improved their family situation by cultivating sugarcane in our area. Seeing this, I was inspired to grow sugarcane, and I am also benefiting from it. Next year, I plan to increase the amount of land dedicated to sugarcane cultivation." Larma further said, “Cultivation of sugarcane costs less and labor is also less. Sugarcane grows well in our hilly areas. The biggest advantage is that sugarcane fields can be planted with vegetables such as cabbage, potato, brinjal, lady’s finger, radish, etc. It can also be economically beneficial.”

The statement by Larma is highly pertinent. In Khagrachari, sugarcane has been grown for the past 20 years. However, sugarcane farming has recently gained a lot of popularity, and more farmers are becoming interested in it every day. At present sugarcane is being cultivated on 5000 hectares of land in Khagrachari. Three thousand farmers are claimed to have achieved self-sufficiency here only by cultivating sugarcane. Khagrachari ranks second in the country in cultivation of chewing sugarcane. Gaibandha is at the top. Bangladesh Sugar Crop Research Institute looks after the maintenance of sugarcane cultivation. A project called Sugarcane Cultivation Enhancement Scheme has been started at Khagrachari by the Chittagong Development Board. In this scheme, 17,000 farmers are being encouraged.

Khagrachari produced 20 thousand 430 tons of sugarcane during the 2020–21 fiscal year. It was 21 thousand 52 tons the previous year. Each year, sugarcane worth 20–25 thousand crores of taka is bought and sold.

Sugarcane belongs to the grass family. Sugarcane has been grown in the West Indies and America since the early eighteenth century. Wet and dry areas are suitable for sugarcane cultivation. There are two types of sugarcane. There is a type of sugarcane from which sugar is produced and another type of sugarcane where the tough upper part is discarded and the juicy fiber inside is chewed. Two types of sugarcane are produced in Bangladesh.

On a positive note sugarcane production is increasing. There are sugar mills in all the areas where sugarcane is produced. Although there is a high demand worldwide for three types of sugarcane for commercial sugar production, more sugarcane of S. officinarum species is produced. The Coimbatore variety of sugarcane is more common in Bangladesh. Sugar content depends on the yield and type of sugarcane harvested at the right age.

On May 18 of this year, UN Secretary General Antonio Guterres said, "The food crisis in poor countries has intensified due to high food prices. Ukraine may face famine if the war continues."

Global wheat and edible oil prices are rising due to the Ukraine war. Prices of all types of fuel, including oil and coal, also increased. Apart from this, electricity prices have been increasing for several months, and the prices of daily necessities have increased. Bangladesh is importing food products at a higher price than before due to the devaluation of the taka. As a result, there is pressure on the reserves. On the other hand, expatriate income has started to decrease. As a result, the country's government, economists, and even common people are worried about the reserve. In such a situation, how people will spend the coming days or how to deal with food shortages should be seriously considered, and necessary steps should be taken. Otherwise, human civilization will be in grave danger.

It can be said that a food crisis has already occurred. The wheat crisis that occurred a few months ago has not ended. The price of flour on the market has increased by several times.

In the meantime, there is a sugar crisis. There are many reasons for the sugar crisis. Brazil is the world's largest sugar producer. India is second. According to reports, Brazilian mills are negotiating to cancel sugarcane export contracts and export contracts ethanol from sugarcane. The demand for biofuels produced from sugarcane has increased due to the increase in fuel prices worldwide. So Brazil made this kind of decision. Ethanol produced from sugarcane is very expensive.

If this is the case, the people concerned think that the price of sugar will increase further. On the other hand, many believe that India may do the same to sugar as it did to wheat exports at the start of the Ukraine war. What is the condition of Bangladesh in such a situation, or what should Bangladesh do?

The sugar situation in Bangladesh is not good. As a matter of fact it is worrying. There were 15 state-owned sugar mills in the country. In the last two years, six of these sugar mills have been shut down. Sugar production has decreased to 30,000 tons. Sugar demand in the country is currently between 18 and 20 lakh tons per year. Sugar is not available in the market as per demand. For this, the importers are mainly responsible.

Previously, the government's sugar mills produced two to three lakh tons of sugar. In 2020, Pabna, Kushtia, Rangpur Shyampur, Panchagarh, and Setabganj factories stopped sugarcane crushing. Due to the closure of the mills, sugar production decreased by 41 percent in the first year and by 50 per cent in the second year. Sugarcane threshing season began in November this year. Meanwhile, the farmers in those areas stopped cultivating sugarcane and moved to other plantations. On the other hand, India's sugar mills have increased production. But why did Bangladesh close the sugar mills at that time? This question remains unanswered.

It is not that there is no sugar market in the country. There was always a shortage of production, but there was a market for sugar. Statistics show that India's sugar imports have increased by 40 to 50 per cent in the last two years. So what can be said is that India was focused on trade and economic prosperity during the pandemic and wartime rather than turbulent times.

Why is the domestic sugar industry so neglected? Or why the sugar industry has gone out of government control? It is known that the sugar industry has gone beyond the control of the government, as it is dependent on private sugar mills and importers.

The neglect of state owned sugar mills is also a major factor. If they were given importance, the demand could be met to a great extent. This would provide employment to sugarcane farmers and laborers. According to sources in the government mills, they do not get enough sugarcane.

The mills are closed most of the year. However, various expenses, including salaries, bonus etc. continue. B

esides, sugar extraction from the types of sugarcane available is very low at 6-7 per cent. In India or Brazil, this rate is 12 to 14 percent.

One of the reasons why the mills do not get enough sugarcane for crushing is that the farmers are not paid immediately after delivering their sugarcane to the mills. They are paid less. Even after harvesting sugarcane, farmers cannot sell it in time to the sugar mills. Due to this kind of trouble, farmers prefer to grow other crops or vegetables instead of sugarcane.

The yield of sugarcane is very low due to a lack of improved technology or production of good varieties of sugarcane in sugarcane cultivation. Here, 18–19 tonness of sugarcane are produced per acre. The production in India is 28 tonnes per acre. The condition of sugar extraction in the factories is also very bad. Sugarcane produced by farmers is very low in sugar.

The sugar extraction level of these sugarcane factories is 8–9 percent. There are some losses while extracting sugar by mechanical means in factories. The sugarcane threshing machine or roller cannot extract the juice properly. The rollers are old and they are working well except that during sugarcane juice processing, juice volume and temperature are below or above the prescribed level. Cost increases due to power consumption during sugarcane crushing, maintenance costs, and waste during sugarcane crushing, etc. That is why the domestic sugar mills are not able to profit. Thus, the sugar mills have been shut down on the pretext of increased costs and losses. Besides, a major part of the cost was the interest on the loan. By not subsidizing the mills, the government has increased their debt. The sugar mills owe a total of 3085 crores taka in debt. The production cost per kg of sugar increased by 5-6 percent.

There are other reasons for the decline in production at sugar mills. Farmers have lost interest in sugarcane cultivation due to not getting a proper price. Due to a lack of supply and quality sugarcane, sugar extraction in the production process is low. Sugar mills incur losses as less sugar is produced from more sugarcane. Apart from this, the mismanagement, corruption, irregularities, etc., of the officials of the sugar mill also worked especially responsible. It would be preferable if the government conducted some monitoring and took the necessary steps to determine why sugar production is low. But the government did not. irregularities in the distribution of capital among farmers, encouraging farmers, and using good quality fertilizers and seeds. All these factors are equally responsible for the destruction of the sugar industry.

But the sugar industry can still turn around if the current government manages it properly. For this, it is necessary to take several plans and steps. For example, reopening closed sugar mills encouraging farmers to cultivate sugarcane and providing capital or incentives. giving them good-quality seeds and fertilizers. monitoring and taking necessary measures to ensure that the officials and sugar mills are being managed properly. Understand the policy of private sugar mills and do not allow them and importers to destabilize the sugar market.

There is still time. Actions need to be taken now to address future food crises. The government has formed a 15-member committee to inspect the state of government sugar mills. The committee is inspecting the mills. There is also something to be done based on their experience.

If the government increases the production of sugar by taking the necessary steps, the import can be reduced. It will save foreign exchange. The current pressure on the reserves should be addressed so that it does not happen again. Those concerned believe that the government will be able to control the sugar market by taking a coordinated initiative in this way.

The writer is a freelance columnist. She can be contacted at [email protected]