Rajshahi Sugar Mills opens new crushing season

Mill authorities stated that the procurement price of sugarcane has been raised by Tk 11 per maund to Tk 260 for the current season. Crushing operations are scheduled to run for 60 days until 13 January. Managing Director Masuma Akter Jahan said the mill targets producing 3,000 metric tonnes of sugar by crushing approximately 70,000 tonnes of sugarcane supplied by 3,900 contracted farmers. While procurement centers are being activated, authorities warned that operations could close ahead of schedule if supply shortages recur.

According to internal estimates, the production cost of sugar this season stands at nearly Tk 300 per kilogram, whereas government directives mandate selling it at Tk 125 per kilogram—less than half the production cost. Both registered and general farmers will be permitted to supply sugarcane, though local mini-crushing machines and jaggery production remain prohibited within the mill zone during the season.

The mill incurred a loss of Tk 70 crore in the 2025–26 crushing season, following a Tk 69 crore deficit in 2024–25, pushing total accumulated losses to Tk 1,064 crore. However, General Manager (Finance) Md Saddam Hossain argued that the figure should not be viewed strictly as a net loss, noting that factoring in the valuation of fixed assets and human resources would significantly reduce the actual deficit.

Production department records show that during the 2025–26 season, the mill aimed to produce 6,930 metric tonnes of sugar over 67 days, but yielded only 3,171 tonnes as operations halted after 44 days due to sugarcane scarcity. Output stood at 3,567 tonnes in 2024–25, and totaled 4,537 tonnes across the preceding three seasons (2021–24), all cut short by raw material deficits.

Agricultural officials noted that farmers are increasingly abandoning sugarcane cultivation due to payment delays at the mill, turning instead to local jaggery production or more lucrative vegetable crops.

Despite enforcement drives and equipment seizures against illegal jaggery producers, supply continues to dwindle. Data from the Department of Agricultural Extension (DAE) in Rajshahi reveals that sugarcane acreage in the region dropped by over half in a decade, falling from 40,867 hectares in FY2016–17 to 19,340 hectares in FY2025–26.