Rangpur Correspondent

Dormant for nearly four years due to financial losses, the machinery of the Shyampur Sugar Mills Limited in Rangpur has rusted overtime.

In the ensuing years, looters have also picked apart its remains.

However, after the interim government came into power, farmers are returning to the fields with renewed optimism, sowing sugarcane seedlings in anticipation of a brighter future.

Meanwhile, the government has announced plans to reopen nine of the country’s 15 shuttered sugar mills. Among the remaining six under evaluation by a government task force is the Shyampur Sugar Mill, whose closure has devastated surrounding farming communities.

However, Shyampur Sugar Mill is not alone in its struggles.

Farmers near Setabganj Sugar Mill in Dinajpur, Rangpur Sugar Mill in Gaibandha, and Panchagarh Sugar Mill are facing similar challenges, grappling with the uncertainty that has persisted since these facilities ceased operations.
Efforts by the ousted Awami League government to attract domestic and foreign investment to revive the mills also yielded little progress. Although entities in Japan, Thailand, and the United Arab Emirates showed interest, the proposals ultimately never materialised.

A memorandum of understanding with S Alam Group, one of Bangladesh’s largest industrial conglomerates, initially raised hopes but was later cancelled amid allegations of irregularities.

Mohammad Abdul Jalil, a registered farmer of Shyampur Sugar Mill has not cultivated sugarcane in any field for nearly three years after the mill was shuttered. However, this year, he is hopeful.

“I am cultivating sugarcane on 4.7512 hectares of land this time. InshAllah, my sugarcanes are looking good. Everyone in Shyampur wants to plant their sugarcane here. Many are already planting it. Now, our demands are for the mill to start operations and for the prices to go a bit higher,” said Jalil.

Although no final decision has been taken on the matter yet, Altaf Hossain, a member of the task force, and former president of Shyampur Sugar Mill Sugarcane Growers Council, said: “The task force has recommended the government to gradually resume operations in the six sugar mills that were shuttered.”

“If everything goes well in the 2024-25 planting year, and the chief advisor gives his approval, production may begin from December. We are hopeful.”

Nearly half of the farmers under the Shyampur Sugar Mill have planted sugarcane on their land this time, and Altaf sees this as a sign of hope.

Jahedul Islam, the assistant manager of Shyampur Sugar Mill, told bdnews24.com: “Shyampur Sugar Mill was closed on Dec 2, 2020, through a government notification. Later, a committee was formed in 2023 to examine the feasibility of this mill. The activities of the committee are ongoing.”

“After the interim government came to power, the national task force formed an 11-strong committee to discuss the reopening of the closed mills. The committee’s activities are ongoing but no decision has been made yet.”

FARMERS DISTRAUGHT OVER MILL’S CLOSURE

Established in 1964 and operational by 1967, the mill’s machinery processed up to 1,016 metric tons of sugarcane daily, yielding an annual production capacity of over 10,000 metric tons.

At its height, the mill supported a vast ecosystem of economic activity as nearly 5,210 registered farmers cultivated sugarcane across 1861.5 hectares, while an estimated 10,000 additional farmers contributed to the supply chain.

The livelihoods of many farmers, transport workers, seasonal labourers, and traders depended on the mill.

But that ecosystem unravelled in the 2020-21 fiscal year, when the Bangladesh Sugar and Food Industries Corporation halted the mill’s operations, citing losses amounting to Tk 2.5 billion. An investigative committee, comprised of representatives from four ministries, recommended the closure, and the majority of the mill's employees were transferred elsewhere.

However, this caused the farmers to suffer the most as they were unable to yield profit from other crops on the fields. As such, many of them have become unemployed after the closure of the mill.

Movement against the closure of the mill were also futile as the deposed Awami League government refused to resume operations and give in to their repeated demands.

Swapan Mia, a sugarcane farmer from Shyampur village, said: “We are not even getting one-third of the profit from growing other crops on the same amount of land. We have suffered a lot due to this. The mill needs to be reopened soon.”

Shyampur Sugarcane Welfare Committee President Imdadul Haque said: “The economy of the area has collapsed due to the closure of the sugar mill. Millions would circulate from this area. Even in the village, we used to live an urban lifestyle. But now we are living below the poverty line.”

“Sugarcane farmers are not able to meet their family expenses by cultivating other crops. Our only demand is that the Shyampur sugar mill be reopened. Then the farmers, businessmen and common people of this area will be economically liberated. This will also expand trade and commerce.”

RUSTING AWAY

When the Shyampur Sugar Mill was operational, the villages surrounding it thrived. Now, four years after its closure, the area lies in economic despair, overgrown with weeds and shadows of its former vitality.

A visit to the shuttered factory last week revealed a haunting tableau. Rusted machinery, battered by time and neglect, stood still under a roof punctured by countless holes. Entire sections of the structure have collapsed, exposing the once-thriving mill to the elements. Outside, a dense jungle of vegetation has overtaken the grounds, lending the area the eerie stillness of an abandoned town. The prayer room for workers inside the mill’s premises has also collapsed.

Security worker Mahmud Hossain said: “The vehicles used for sugarcane transportation and many parts of the sugar mill are getting damaged due to lack of maintenance. There is no one to look after them. Since the sugar mill is closed, many are not getting their regular salaries and allowances.”

Security worker Shahidul Alam works at the mill on a contractual basis.

Urging the interim government to reopen the mill, he said: “I hear that a process is underway to reopen the mill. Our mill’s machinery is from Mitsubishi. There was no breakdown. Sugarcane farmers here are also interested in harvesting.”

Shamsher Ali, a security guard at the mill has been working there since 1981. Despite retiring in 2017, he is now working on a contractual basis. He gets paid every two to three months.

He told bdnews24.com: “I hear that Setabganj and Shyampur mills in Dinajpur will be opened. The MD sir is also asking for sugarcane planting. The farmers are also willing.”

Some farmers and residents of the factory area said that many parts of the sugar mill have been stolen as the factory had been closed for a long time. Other parts, including the wheels of vehicles used for sugarcane transportation were being removed and sold. Others were using the factory's furniture for personal purposes.

FARMERS REIGNITE SUGARCANE CULTIVATION AMID “ASSURANCE”

According to farmers, sugarcane is a year-round crop. However, it is more profitable than other crops. Apart from this, the mill authorities provide loans for fertilisers and seedlings among other incentives.

In the years following the mill’s closure, the region's farmers faced uncertainty. Without a steady buyer, much of the sugarcane land lay fallow, and efforts to pivot to alternative crops brought only modest returns.

According to Altaf, a feasibility study was being conducted to start operations.

One of them is whether there is enough sugarcane cultivation in the mill area. If enough sugarcane is grown here then the mill can see the face of light. This is one of the reasons why people are now taking interest in sugarcane cultivation.

Sugarcane is usually grown from October to December. Most of the sugarcane is sown by November. This time more than half of the farmers have cultivated sugarcane. And now the price of sugarcane is also good.

When asked about the incentives for farmers, Altaf said: “Those who can plant sugarcane at the right time get an incentive of Tk 3,000 per acre. Apart from this, the factory authorities give an incentive of Tk 5,000 per acre if they cultivate other crops like potato, onion, papaya along with sugarcane.

(Companion crops are grown where there is a gap in the 'line to line' of sugarcane cultivation)

On the other hand, those who make sugarcane seedlings get Tk 4,500 per acre.

According to the farmers, two years after the closure of the mill, they suffered a lot.

In 2022, Joypurhat Sugar Mill authorities came forward to encourage farmers to cultivate sugarcane. As a result, some farmers resumed cultivation because if the mill does not buy sugarcane, the crops will be destroyed in the field.

When the mill closed four years ago, sugarcane was priced at Tk 3.5 per kg. But now the government is paying Tk 6 for every kilogram of sugarcane. This has increased the income of farmers. Earlier, it was sold at Tk 350 per quintal (100 kg), but now they are being able to sell it for Tk 600 per quintal.

A farmer can grow up to 400 quintals of sugarcane per acre. In this case, the price per acre is Tk 0.24 million to Tk 0.25. In addition to this, they also receive separate incentives.

Apart from this, farmers do not have to make any investment for fertilisers and seeds. The money for fertilisers and seeds is also given to farmers on loans. When sugarcane money is paid, the authorities deduct the money.

When asked what will happen to the incentives or money of the sugarcane farmers of Shyampur if the mill does not resume operations, Altaf said: "Other mills will buy it."

According to Altaf, a meeting was held recently with the advisors, secretaries and other officials of the Ministry of Industries. Four-five meetings were held in October on the issue of sugar mills. In the meeting, an initiative was taken to start the Shyampur Sugar Mill. As such, it has been decided to cultivate sugarcane in the sugar mill region.

"A target has been set to cultivate sugarcane on 1011.7 hectares of land for fiscal year 2024-25. Next year, sugarcane will be cultivated on 1618.7 hectares of land. The decision was taken by the industry ministry. The decision is currently in the office of the chief advisor. Sugarcane cultivation is required on at least 1618.7 hectares of land to keep the sugar mill running. "

“SUGAR WORTH 42 TAKA IS NOW 160 TAKA - WHAT KIND OF POLICY IS THAT?”

Mofizul Islam, a resident of Shyampur College area said: “Earlier, the money that was earned by cultivating Kushel could be used to pay for the education of children, daughter’s marriage, and sustaining households. By closing the mill, the government has destroyed everything. Even if it is for a few days, the government has caused serious losses.”

“What kind of loss was incurred, that the mill was closed because of it? Now that sugar is sold for Tk 150 taka or Tk 170 taka, will there be a profit or a loss if it is sold for Tk 42? This is the government’s policy. Now I am eating Indian sugar for Tk 160. What kind of policy is this?”

According to Mosharraf Hossain, the office assistant (administration) of the sugar mill, 25,000 to 30,000 tons of sugarcane that comes to the factory here is brought by the farmers. The factory does not incur any expenses. It runs at the lowest cost in Bangladesh. Even then, it has been closed.

“Since the mill has been closed, farmers are facing a lot of problems, from their daughters’ marriages to their children’s education. I was speaking to a farmer and he said, he can’t afford his daughter’s wedding. When I asked him why, he said it was because the mill is closed. And there is not that much money coming from other crops.”

Imadul said: “If the mill is not reopened, this area will never recover. If the mill is opened again, there will be nothing here except sugarcane. We have submitted all the documents; I hope the government will open the mill very soon.”

“ HARD TO MAKE PROFITS WITHOUT BY-PRODUCTS”

According to Zahedul Islam, the assistant manager of the Shyampur Sugar Mill's extension operations, most of the vehicles and works of the mill were sent to other factories after the facility was shut down.

“Out of 40 vehicles, 35 have been relocated. The remaining ones, mostly outdated, are deteriorating from disuse.”

Though sugarcane transport vehicles remain on-site, the machinery that powered the mill is in no condition to resume operations.

“Even if we reopen now, we would need new equipment,” he added.

“It is very difficult to make a factory like this profitable by producing sugar alone. There must be by-products. Carew company has become profitable by doing that. They earn Tk 3 billion to Tk 4 billion a year by making distilleries and organic fertilisers. North Bengal Sugar Mill made Tk 0.3 billion last year by producing enough.”

“It is not unusual for machinery to be damaged if it is lying around. We are vigilant to prevent theft and looting of plants in the sugar mill premises.”