Zeal Bangla Sugar Mill in loss, loan burden increases

One of the better sugar-producing companies, Zeal Bangla Sugar Mills Limited of Dewangonj, Jamalpur, is on the verge of sinking due to mismanagement. Its loan burden is increasing day by day due to failures in commercial management.

The mill, one of the sister concern of Bangladesh Sugar and Food Industries Corporation (BSFIC) is gasping due to a huge loan. Despite its production capability and sugar collection rate increasing, it is counting losses every year.

The total amount of loan has now reached over Tk 704 crore, 7 lakh.

Sources of the mill said in 2021, the total loan was Tk 450 crore, and that loan has now reached over Tk 704 crore, 7 lakh, including interest, within four years. The mill authority repaid Tk 32 crore, 30 lakh in June 2025 as interest only.

The concerned officials said the cost of producing per kg of sugar has now reached Tk 237, while it is sold now at Tk 125 only. The mill is now counting a Tk 122 loss per kg of sugar. Such losses have increased the total loan burden of the mill.

The authority of the mill said if a large portion of the interest, about 70 percent, is waived, the problem of the company will be resolved.

They said the mill could be made even profitable if measures could be taken to produce several potential by-products.

Managing Director of the mill, Md. Toriqul Islam, told Asia Post, “We have let the government know in different ways that it is needed to increase the supply of sugarcane to the mill. Besides, producing alternative products with the sugarcane could reduce the loss.”

Sources said farmers showed reluctance to provide sugarcane to the mill, saying it is less profitable. They also alleged delayed payment and such other matters.

Local sugarcane farmer Rukon Mia said, “The wage of a day labourer is Tk 500, fertilizer prices are rising, and a vehicle rent to carry sugarcane to the mill costs at least Tk 1,000. Vehicle rent and workers’ wages cost at least Tk 6,000. We get Tk 8,000 to Tk 8,500 from the mill. But delayed payment creates suffering.

“As a result, farmers show reluctance, but,” he said, “if the government hikes the price of sugarcane slightly, we will cultivate sugarcane further.”

Helaluddin, another sugarcane farmer, said, “When farmers become empty-handed, they usually sell their sugarcane to traders to meet family needs and day labourers’ wages.

“As we become compelled to sell sugarcane to the traders at a low price, our needs are not met. It will be helpful to us if the sugar mill pays us quickly. Then we can supply the sugarcane to the mill instead of selling it to the traders,” he said.

Official sources said the sugar collection rate of Zeal Bangla Sugar Mill is higher than that of other mills.

The mill produced 4,900 tonnes of sugar by crushing more than 70,000 tonnes of sugarcane in the 2025-26 crushing season.

Once, there were 11,000 sugarcane farmers under the mill’s jurisdiction, but now it has been reduced to 3,500 farmers.

Late payment and a lack of coordination between the mill and the farmers have reduced the number, sources said.

When contacted, Dr. Abdul Alim Khan, Joint Secretary and Director of the Bangladesh Sugar and Food Industries Corporation (BSFIC), told Asia Post, “If we can initiate another unit to produce liquor under Keru and Company, that liquor will be exported abroad instead of being sold in the local market.”

“We have a plan and there is potential to make it profitable,” he said.