Modernisation of Thakurgaon Sugar Mills on anvil

The government has taken an initiative to modernise Thakurgaon Sugar Mills in a bid to reduce its ‘process loss’ through replacing its old machinery and introducing another option for sugar production from beet sugar alongside boosting its output from sugarcane.   The Executive Committee of the National Economic Council (Ecnec) has recently approved a project to this end, titled ‘Replacement of Old Machinery and Addition of Machinery for Beet Sugar Production at Thakurgaon Sugar Mills Ltd.’
Bangladesh Sugar and Food Industries Corporation (BSFIC) under the Ministry of Industries will implement the project at a cost of Tk 101.53 crore to be completed by June 2016.   Planning Ministry sources said the main objectives of the project are to replace the old machinery keeping intact its installed sugarcane crushing capacity.
Besides, the project is also aimed at reducing the ‘process loss’ by modernising sugarcane crushing and processing machinery apart from producing sugar from beet alongside sugarcane.
Under the project, machinery worth Tk 69.65 crore will be procured apart from procurement of local machinery valued at Tk 6.41 crore. Besides, there will be an expenditure for construction and renovation of factory building with Tk 4.90 crore, machinery installment of Tk 2.30 crore, other capital expenditure Tk 3.10 crore and procurement of vehicles Tk 3.11 crore.
An official at the BSFIC said that once the project is implemented, some 13,899 metric tonnes of sugar would be produced from sugarcane and 855 metric tonnes from beet, which will be helpful to meet the growing demand for sugar in the country.
Agriculture Ministry officials said the Bangladesh Sugarcane Research Institute (BSRI) has been piloting a project since July 2011 where per hectare yield of sugar from beet was between 88.33 to 133.33 tonnes at the BSRI farms in season 2010-11.
Under the circumstances, it is viable to go for sugar production from beet alongside crushing sugarcanes at the Thakurgaon Sugar Mills Ltd.
The Pre-Evaluation Committee (PEC) meeting on the project was held on December 22, 2012 where the Planning Commission had recommended giving approval to the project.
Located near the Thakurgaon Railway station at a distance of about 5 km from Thakurgaon town under Sadar upazila, the Thakurgaon Sugar Mills was set up by the government in 1956-58 at a cost of Tk.21.21 million.
The machinery and equipment of the sugar mill were supplied by M/S.A.W. Smith & Co. of England. The sugar mill started trial production in 1958-59.
The original cane crushing capacity of Thakurgaon Sugar Mills was 1016 metric tonnes per day which was increased to 1524 metric tonnes a day in 1965 by BMRE at a cost of Tk.5.10 million, thus raising the sugar production capacity to 15,240 metric tonnes per annum.
The Thakurgaon Sugar Mills was further modernised during 1988-92 at a cost of Tk.166.31 million. Since the country’s independence, the sugar mill has produced 9,607 metric tonnes of sugar per annum on average at an average sugar recovery rate of 7.39 percent from sugarcane.
The highest sugar production was 20,123 metric tonnes in 1994-95. The total land under the Thakurgaon Sugar Mills is 2888.59 acres, including five commercial farms. The factory and residential area is 113.48 acres and commercial farms -2775.11 acres.
Total cane-cultivable land in the mill-zone of the Thakurgaon Sugar Mills is about 45,800 acres of which 14,500 acres per annum on average is brought under sugarcane cultivation. The sugar mill has contributed Tk 756.10 million to the national exchequer as dividend taxes and duties since 1972-73. – UNB