Shampur Sugar Mills in crisis due to financial crisis

Staff Reporter: State-owned sugar mill Shampur Sugar Mills is in crisis due to financial crisis. The loss of the company is increasing with the passing of the year. As per the decision of the government, the activities of the mill are currently suspended.

According to the audited accounts for the financial year 2019-20, the accumulated loss of Shampur Sugar Mills is Tk. 505 crore. The accumulated loss has increased by Tk.

However, due to ongoing other expenses, the company incurred a loss of over Tk 50 crore in 2020-21, which is five times more than the total revenue of the company. Shampur Sugar Mills has not been able to balance its income and expenditure as it has not been able to extract juice from sugarcane and produce sugar as expected through old machineries.

To reduce losses, Bangladesh Sugar and Food Industries Corporation (BSFIC) has suspended sugarcane threshing in five more sugar mills, including Milti, in 2020-21. At present the production of the mill is stopped, due to which the wages and allowances of the workers are also stopped. About six months salary arrears of permanent or temporary workers. The mill paid its last salary in March.

The current condition of the mill is very bad, said the managing director of Shampur Sugar Mills. Ahsan Habib. He said such a crisis has never happened. Six months salary-allowance arrears. All in all, a very critical situation has arisen.

As for the reason for the loss, he said, “Machineries are very old, it is not possible to extract juice and sugar from sugarcane as per the target. However, the amount of unused land of the mill is a lot. Some alternatives have been suggested to ensure proper use of this land. ” He thinks it is possible to make it profitable if the proper use of the land of the mill is ensured.

According to the monthly management information system (MIS) report of the Bangladesh Sugar and Food Industries Corporation, the revenue of Shampur Sugar Mills in the fiscal year 2020-21 has been around Tk 12 crore. The loss against this income is 50.45 crore. Shampur Sugar Mills has incurred an average loss of Tk 4 crore per month.

The mill suffered the most losses in December 2020. The company had a total revenue of Rs 30.42 lakh this month. However, the loss was Tk 7.54 crore.


Source: Daily StockBangladesh by www.dailystockbangladesh.com.

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