Present Situation and Prospects of Sugar Mill in Faridpur.The present situation and prospect of the sugar mills in Faridpur are presented in this paper. Faridpur sugar mill are selected mill zones were interviewed to find out the problems and prospects of sugar industry in Faridpur. About 1.0 million metric tonnes sugar is required annually for domestic consumption, but the sugar mills can meet only 1/5 of this requirement. The sugar mills are facing lots of problems for which they cannot reach the target production level. The major problems are poor management and finance; inadequate supply of sugarcane; supply of poor quality cane with low sugar content; low recovery of sugar by the old machines; and lack of commitment and corruption of the mill stuff. The growers on the other hand have many problems and limitations for production of quality sugarcane and supply these canes to the mills.

1. 1
Present Situation and Prospects of Sugar
Mill in Faridpur
Submitted To:
Md. Jasim Uddin Howlader
Associate Professor
Department of Management
Govt. B.M. College, Barisal.
Submitted By:
Ganesh Baidya
B.B.A (Hon’s) 2nd
Year
N.U Roll No: 8326281
Reg. No: 2360489
Session: 2012-2013
Department of Management
Govt. B.M. College
Date of Submission: 09 September 2015
ON

2. 2
LETTER OF TRANSMITTAL
09 September, 2015
Md. Jasim Uddin Howlader
Term Paper Supervisor
Department of Management
Govt. B.M College, Barisal.
Sub: Submission of Term Paper on Present Situation and Prospects of Sugar Mill
in Faridpur.
Dear Sir,
The term paper submitted is on Present Situation and Prospects of Sugar Mill in
Faridpur done as a partial fulfillment of the requirement of BBA. You assigned me to
prepare this term paper as a requirement of the BBA course curriculum. I am
enthusiastic to you for giving me the opportunity to undergo such an experience.
This term paper is a partial requirement of the BBA program go in making this report
worthy on. I have tried my level best to gather all relative information from the various
sources. I hope that it will meet your expected demand.
I sincerely, hope the this report meets your fulfillment and its appraisal would
demonstrate my ability to prepare a formal report. I would be glad to furnish you with
clarifications, if required.
Thanking you
Sincerely yours
Ganesh Baidya
B.B.A (Hon’s) 2nd
Year
N.U Roll No: 8326281
Reg. No: 2360489
Session: 2012-2013
Department of Management
Govt. B.M. College

3. 3
STUDENT’S DECLARATION
I’m Ganesh Baidya a student of BBA 2nd
year department of Management Govt. B.M.
College, Barisal declare that this term paper title “Present Situation and Prospects of
Sugar Mill in Faridpur” is a presentation of my own research work and complied by
me. It does not reproduce others work. Every effort is made to indicate this clearly, with
due reference to the literature & acknowledgement of collaborative research and
discussion. This work was done under the guidance of Md. Jasim Uddin Howlader
Associat Professor, Department of Management, Government B.M. College, Barisal.
Ganesh Baidya
……………………….
Signature
Date: ………………

4. 4
SUPERVISOR’S AUTHENTICATION
Ganesh Baidya , BBA Honours, 2nd
Year, N.U Roll No: 8326281, Registration No:
2360489, a student of BBA Program has submitted the term paper on “Present
Situation and Prospects of Sugar Mill in Faridpur”. He has completed his term paper
under my supervision. I have gone through the term paper and found that he has covered
some ideal, realistic and practical parts of the study in the term paper.
Md. Jasim Uddin Howlader
……………………
Signature
Date:

5. 5
ACKNOWLEDGEMENT
Find of all, I would like to convey my sincere thanks to GOD because he has
given me the opportunity to complete my term paper of course, I acknowledge
the support and assistance given by a number of people. I am grateful to many
individuals for the completion of the term paper successfully.
I have gathered an enormous deal of experience while going through the
internship period and preparation of this term paper. I would like to thank to my
term paper supervisor Md. Jasim Uddin Howlader for his excellent guidance and
support during the preparation of the report.
Lastly, my heartiest thanks go to others who were involved and helped directly
and indirectly in completion of term paper and preparing this report. Special
thanks go to all workers of online Services for who spared this time generously
and took the trouble of answering detail information and helped me to complete
my study. Without them all these wouldn’t be made possible.

6. 6
Abstract
The present situation and prospect of the sugar mills in Faridpur are presented in this
paper. Faridpur sugar mill are selected mill zones were interviewed to find out the
problems and prospects of sugar industry in Faridpur. About 1.0 million metric tonnes
sugar is required annually for domestic consumption, but the sugar mills can meet only
1/5 of this requirement. The sugar mills are facing lots of problems for which they
cannot reach the target production level. The major problems are poor management and
finance; inadequate supply of sugarcane; supply of poor quality cane with low sugar
content; low recovery of sugar by the old machines; and lack of commitment and
corruption of the mill stuff. The growers on the other hand have many problems and
limitations for production of quality sugarcane and supply these canes to the mills. The
major problems mentioned by the growers are the corruption of mill stuff; delay in
taking delivery of canes at the mill gate and delay and irregular payment of the bills;
taking bribes by the corrupted stuff to procure canes from the growers and for payment
of bills; offering low price even if the they supply good quality production. Sometimes
the growers do not get the timely supply of inputs and loans. For all these problems of
both the mills and the growers, sugar industry is at the point of threat recurring heavy
financial losses. Sugar industry can be made profitable and may have better prospect in
Bangladesh through adoption of stringent policy and programs like strong management
to stop corruption, replacement of old machinery, effective training of the mill
technicians, training and support to the growers, etc.

7. 7
SUMMARY
 Faridpur is one of the largest producer of sugar in Bangladesh and so also the
consumer. Can manage its inventory to its advantage by rotating the same
through imports and exports.
 Agriculture growth pegged at 3.5% - sugar cane has to compete and compete on
its own.
 There exists a potential in terms of increase in productivity, extraction and
production.
 Like in the past planners/policy makers/farmers producers - should get together
to form a policy also acceptable to politicians.
 Optimistion of sugar mill capacity - vertical growth need of the day.
 Pricing
 Decontrol may not be the answer - at the same time dual pricing policy has to go
to provide level playing field for all sweeteners.
 Government can procure sugar from market and subsidies in case, it is a must
for PDS.
 For the good of consumer, farmer and the mills sugar price should move in a
band, meaning monthly inflow to market to be regulated by Government.
 Balanced export/import policy.
 Mills and farmers to work together to improve yield and extraction through
better harvesting.
 To become internationally competitive - i.e. cost effective and quality producer.
 To be ready for free marketing i.e. to hedge on futures.
 With consistent policy and competitiveness Faridpur can be a regular player in
the international market.

8. 8
TABLE OF CONTENTS
SL Topics Page
Number
1 Letter of Transmittal
Student’s Declaration
Letter of Acceptance
Acknowledgement
Abstract
Summary
2
3
4
5
6
7
2 CHAPTER-1
1.1 Introduction
1.2 Objectives of the Study
1.3 Methodology
1.4 Approaching the Issue
1.5 Limitations of the study
9
10
10
10
10
11
3 CHAPTER-2
2.1 List of Sugar Mills in Bangladesh
2.2 History
2.3 Objectives
2.4 Organizational structure
2.7 Man Power
2.8 Source
12
13
14
14
15
15
4 CHAPTER-3
3.1 The production of 10 Years
3.2 Sales and Earning 10 Years
16
17
5 CHAPTER-4
4.1 Trade Union
4.2 Future Plan
4.3 Present Problem of Sugar mill
4.4 Major Issues
18-20
21
22-23
24
6 CHAPTER-5
5.1 Conclusion and Recommendation
5.2 Reference
23-24
26
7 Bibliography 27

9. 9
CHAPTER-1
INTRODUCTION
Introduction:
Sugar mill in Faridpur started its journey from 1974-1978 and since then 1976-1977
Faridpur sugar mills were established. Faridpur Sugar mill is administered by
Bangladesh Sugar and Food Industries Corporation (BSFIC) under the Ministry of
Industries.
According to FAO, sugar requirement per capita/day is 29 g and Bangladesh requires
1.0 - 1.2 million tonnes of sugar/year to meet the demand of domestic consumption. The
figure will be larger in near future to keep pace with the country’s demographic growth
of 2.0 million/year and expected change in quality of life. Sugar production during
2002-03 and 2003-04 were 0.177 and 0.119 million tonnes at the recovery rate of 6.73
and 7.26% respectively (BSFIC, 2003 and 2004). To reach the present production
capacity of 0.20 million tonnes/year, the availability of sugarcane at mill gates should be
2.5-2.6 million tonnes/year with the sugar extraction rate of 8.0 Percent. But sugarcane
available to the mills hardly exceeded 2.3 million tonnes in the last 10 years (1993-94 to
2002-03) and consequently the net sugar production figure did not exceed 0.172 million
tonnes annually with sugar extraction rate of 7.46 Percent (BSFIC, 1994-2004).
The yield and recovery of sugarcane varieties released from Bangladesh Sugarcane
Research Institute (BSRI) are much higher (93 to 102 tons/ha) than the average yield
(43 tons/ha) and recovery (7.46%) as reported by BSFIC (Rahman and Pal, 2003;
Shahriar, 2004). This indicates the prospect of increased production of sugar by
reducing the yield and recovery gaps through motivation and training of the growers.
Besides, there are problems in sugar mill procurement and collection system at the mill
gates for which sugar mill supply is much less than required. As a result the sugar
industry is counting losses with a threat to its existence. All these aspects justify an in-
depth analysis of the prospects and problems of the sugar industry in Faridpur. A study
was, therefore, undertaken to identify the present situation and prospects of sugar mills
in Faridpur, sugarcane growers and the sugar mill in Faridpur as a whole so as to
suggest some measures to be undertaken to brighten the present situation and prospect
of sugar mill in Faridpur.

10. 10
1.1 Objectives of the Study
CSR Centre undertook the present study to identify the challenges to sustainability of
the sugar sector and to discover options for deploying CSR instruments for its
revitalization and improved sustainability.
1.2 Methodology
The broad scope of the term sustainability has many dimensions. While some
quantitative indication is unavoidable, the choice of the method of investigation is
basically interpretative and hence qualitative. Therefore, the framework for the research
starts with a discussion on the approaches to the issue. Considers the matter of sampling
and data collection. Lastly, this research interprets the data through a combination of
quantitative and qualitative analysis.
1.3 Approaching the Issue
The key research issue involves the state of the sugar industry in Faridpur and the
prospects and problems of sustaining its healthy survival and growth. Hence the first
aim is to look at available statistical and other information to assess the state of the
industry. However, the issue of sustainability has many dimensions. For the benefit of
CSR, whose principal interest lies in the social sustainability through the deployment of
CSR programs, the research needs a qualitative approach. After all, Sustainability of the
sugar industry is essentially a matter of the quality of the sugar sector.

11. 11
1.4 Limitations of the study:
In preparing this report I tried my best to overcome the limitations. But this report was
not right of limitations.
1. Time Constraint
One and half month is not enough for a BBA Student to understand the real and
practical Knowledge about Present situation and prospect in Sugar mill in Faridpur.
2. Unavailability of data:
Adequate and in depth well organized information is not available for access. Relevant
papers and documents were not available sufficiently.
3. Secrecy of Data:
Official secrecy of Internet address was also a problem to me
4. Lack of Experience:
As I didn’t prepare a term paper in my life. So, inexperience was one of the main
Limitations of the reports.
5. Communication problem:
It was not easy to Communicate with the all needs officials and resource personal due to
their schedule and different constraint.

12. 12
CHAPTER-2
List of Sugar Mills in Bangladesh
SI. No. Name of the Enterprises Location/Address
1. Panchagarh Sugar Mills Ltd. Panchagarh
2. Setabganj Sugar Mills Ltd. Setabganj, Dinajpur
3. Thakurgaon Sugar Mills Ltd. Thakurgaon
4. Shyampur Sugar Mills Ltd. Shyampur, Rangpur
5. Jaipurhat Sugar Mills Ltd. Jaipurhat
6. Natore Sugar Mills Ltd. Natore
7. North Bengal Sugar Mills Ltd. Gopalpur, Natore
8. Rajshahi Sugar Mills Ltd. Harian, Rajshahi
9. Kushtia Sugar Mills Ltd. Jagati, Kushtia
10. Mobarakganj Sugar Mills Ltd. Naldanga,Jhenaidah
11. Carew & Co(BD) Ltd. Darsana, Chuadanga
12. Faridpur Sugar Mills Ltd. Madhukhali, Faridpur
13. Pabna Sugar Mills Ltd. Dashuria, Pabna
14. Zeal BangIa Sugar Mills Ltd. Dewanganj, Jamalpur
15. Carew's Distillery Darshana, Chuadanga
16. Renwick, Jagneswar & Co. Kushtia

13. 13
2.1 History
Faridpur, city, central Bangladesh. It is located on the west bank of the Mara (Dead)
Padma stream, a tributary of the upper Padma River (Ganges [Ganga] River).
Faridpur serves as a rail terminus for the branchline connecting Goalundo Ghat with
Kolkata (Calcutta; in India) and is linked by road with Kushtia, Meherpur, Khulna,
Barisal, and Jessore. The city was constituted a municipality in 1869 and takes its name
from the Muslim saint Farīd-ud-Dīn Masʿūd, whose shrine is located there. It has a
thermal power station, jute mills, and several government colleges.
Faridpur Sugar Mill is located in Modhukhali of Faridpur district. It was set up by the
Government in 1974-78 at a cost of Tk. 144.55 million. The sugar mill started trial
production in 1976-77.
Cane crushing capacity of Faridpur Sugar Mills is 1016 M. Tons per day and sugar
production capacity is 10,160 M. Tons per annum. Since establishment, the sugar mill
has produced 10,427 M. Tons of Sugar per annum on average at an average sugar
recovery rate of 7.73% from sugarcane. Highest sugar production was 16,828 M. Tons
in 1994-95.
2.2 Study Area:
Faridpur Sugar Mill is in Modhupur, Faridpur district and in the division of Dhaka.
Faridpur sugar mill’s construction was started during 1974 and it was ended during
1978. The production of sugar was started during 1976-1977. About 1016 TCD cane can
be crushed daily and yearly production is 10,160 M. Ton. The factory area covers on an
about 56.50 Acre. Faridpur Sugar Mill stands at Modhukhali of Faridpur district. The
machinery and equipment are brought from M/S.StrokWerks Poor of Holland. At an
average the sugar recovery rate is 7.73% per annum. The average wind speed is 18
Mile/hour and the average temperature of the region is on an about 32◦C.

14. 14
2.3 Data:
The mass balance of the sugar industry is given below which is according to the flow
chart of the study . The various water quality parameters at different distances Of
Chandana River give the right idea on the intensity of the pollution in the river water.
The different water quality parameters are pH, color, turbidity; Biochemical Oxygen
Demand (BOD5), Chemical Oxygen Demand (COD) and dissolve solids tests were
done. On the basis of the velocity of streams the great change in the water quality
parameters enhances the pollution of the river water and its intensity of pollution and
effect on environmental species and food chain is great.
2.4 Objectives of the corporation:
1. Production of high yielding & high sucrose content sugarcane in mills zone
through extension activities.
2. Maximise production of sugar by optimum utilization of installed capacity of the
sugar mills and thereby save hard earned foreign exchange.
3. Maintain stable price of sugar in the domestic market through efficient
marketing.
4. To undertakes BMR/BMRE works of existing sugar mills as well as to take steps
for establish sugar mills with a view to attain self-sufficiency in sugar
2.5 Name of Training Institute/Centre of the corporation:
There are 12(twelve) numbers of training complex which are located in 12 sugar mills.
Name of .Joint Venture Project with %, of shares of the corporation: Nil

15. 15
2.6 Manpower :
Category Head
office
Mills /
Enterprises
Grand
Total
Officer 156 935 1091
Staff(Permanent) 182 4999 5181
Worker(Permanent) - 3038 3038
Staff(Seasonal) - 3297 3297
Worker(Seasonal) - 1880 1880
Grand Total: 338 14149 14487
2.7 Source
Sugar consumed in Faridpur comes from three main sources:
 private sector sugar refiners, who import raw sugar and process it;
 domestically grown sugar which is milled by the Bangladesh Sugar and Food
Industries Corporation (BSFIC) owned by the Government; and
 imports of refined sugar
Table 3: Sugar market share of different participants in Faridpur
Estimated Share (%)
BSFIC 10-15%
Direct Import 5-10%
Private Sector Reference 820%
ODI Research, Interviews with Stakeholders The private sector does not use
domestically produced sugar as it can import sugar of a higher quality more cheaply
from abroad. Domestic sugar production is entirely dependent on state subsidies to state
owned enterprise (SOE) mills. The estimated share of sugar coming from each of these
sources is shown in Table 3 above.

16. 16
CHAPTER-3
3.1 Production of 10 Years
Traditionally the government makes formal contracts with mill zone sugar producers to
produce and sell all of their production to government sugar mills. However, there is
now a trend for farmers not to sell all of their sugar production to government mills (e.g.
in order to produce more handicraft sugar products such as “gur/ jaggery” for local
consumption). This is affecting production levels at the BSFIC mills. There is also
evidence that some farmers are switching from growing sugar to growing seasonal
vegetables and other cash crops. This suggests that the price paid for sugar cane under
the BSFIC scheme is too low.
Table 4. Production of Sugar at 10 Years (2004-2014)
Crushing
Season
Sugar
Production
(‘000 ton)
Sugar import
(‘000 ton)
2003-2004 246.00 138.00
2004-2005 195.00 5.00
2005-2006 167.00 64.00
2006-2007 221.00 86.00
2007-2008 270.00 156.00
2008-2009 184.00 28.00
2009-2010 256.00 142.00
2010-2011 184.00 95.00
2011-2012 210.00 118.00
2012-2013 280.00 154.00
2013-2014 125.00 75.00

17. 17
3.2 Sales and Earning 10 Years (2004 to 2014)
S.N Particulars Audited figure 10 Years Period
(2004-2014)
1 Net Sales / Income from operations 2799610
2 Other Income 13100
3 Total Experditure 868890
4 Interest 70560
5 Depreciation 33190
6 Profit/ (loss) before tax 15600
7 (Provision for tax) Taxes & Defered Tax 4330
8 Net Profit/ (loss) PAT 1793902

18. 18
CHAPTER-4
Trade Union
Thus driven by statutory requirements most trade from the sugar mills is to licensed
wholesalers - who in turn service retailers for the household customers and endusers for
institutional demand.
Moreover, with such a large customer base spread all over the Bangladesh, neither it is
possible for the individual mill to access them, nor service. Thus trade Union is an
important link in the supply chain.
In order to make sure of commitments/transactions and collection of sales proceeds a
system of indent and order collecting agent got developed over a period of time in most
states. These agents are appointed by the mills whose role is:
1. To book order from wholesalers.
2. Place such orders and delivery instructions on mills
3. Arrange deliveries from mills to the wholesalers.
4. Collect payment from the wholesalers
5. Pass on sales proceeds to the mills
The mills for the above service pay a consideration by way of commission (0.5 to
0.75%).
The secondary sale is transacted through brokers. Such brokers bring the wholesalers
and the retailers in contact for the ultimate sale and charge a free (upto 0.25%)
The retails either pick up the sugar or the wholesaler makes the delivery to the retailer at
a cost

19. 19
4.1 Future Plan
The companies plan should be taken time to time where necessities for the new age.
Management already decided to include one spinning unit (Rotor and Ring spun) with
this project so that the required standard quality of yarn is made available within the
premises by which superior quality fabric can easily be produced from the weaving shed
and will achieve highest possible efficiency with a resultant reduction in the cost of
production. The company expects better efficiency and sophisticated products and
beyond try to meet the growing demand have home and abroad satisfactory.
On September 5, 2018, the sugar mill in Faridpur issued the Medium and Long-term
Plan of Renewable Energy Source Development to meet the growing energy demand,
improve the energy structure and reduce environmental pollution. Up to 2025, the gross
installed capacity of sugar mill will reach 300 m.ton, 225 m.ton of which will be from
the large and middle-scale sugar mill, while 75 m.ton from small production On March
18, 2018, the BSMA announced the Twenty Eighteen- year Plan of Renewable Energy
Source Development. An additional 73 m.ton of hydropower will be installed during the
Twenty eighteen- year period (2006–2010), 13 m.ton of which will be from the pumped
storage power stations. By 2010, the total installed capacity of production will reach 190
m.ton, 120 m.ton of which will be from the large and middle-scale conventional
hydropower, 50 m.ton from small production, and 20 m.ton from the pumped-storage
power stations. The installed capacity of conventional power that will have been
constructed by 2020 will account for 31% of the technically exploitable installed
capacity of Faridpur’s total.

20. 20
4.2 Data
The mass balance of the sugar industry is given below which is according to the flow
chart of the study . The various water quality parameters at different distances Of
Chandana River give the right idea on the intensity of the pollution in the river water.
The different water quality parameters are pH, color, turbidity; Biochemical Oxygen
Demand (BOD5), Chemical Oxygen Demand (COD) and dissolve solids tests were
done. On the basis of the velocity of streams the great change in the water quality
parameters enhances the pollution of the river water and its intensity of pollution and
effect on environmental species and food chain is great. Legend: Black Rectangle is
milling; Red one is purification and Blue is boiling. 3D hatch boxes denote the material
is taken out from the system.
4.3 Mass balance of the sugar mill
The mass balance of the Faridpur Sugar mill involves with the three consecutive linear
steps which are: Milling, Purification and Boiling. In the milling there are two steps in
the inlet sections viz. sugar cane and water adding and outlet section comprising of
mixed juice and bagasse. Next, the purification section having mixed juice and the
flocculants to be added to give the output as clear juice and the paste mud.
Finally the boiling section heats the clear juice to give sugar, molasses and the steam.

21. 21
4.4 Present Problem of mills
Major Problems in the Sugar Sector The overall problem in the sugar sector is that the
state-owned sugar mills have long been in decay and dilapidation, with continuous
streaks of massive losses. Its output varies enormously from one year to the next. In
contrast, the private sector refineries have ample capacity and are apt to grow vigorously
unless the policymakers revert to the long era of protectionism and subsidization.
4.5 Insufficient Raw Material
Sugar mills are unable to procure enough sugarcane to crush. This is so because farers
lack the incentive to sell cane to the mills at low price. They rather prefer gur makers
who offer higher prices. And they switch to non-cane crops.
4.6 Low Rate of Recovery
The average recovery rate in Bangladesh is around 7%, while that in Brazil is more than
twice as high. This is the result of traditional varieties of cane with low sugar content
and especially the outdated technology that fails to crush the sugar cane enough to
extract the sugar content.
4.7 Production Cost is Higher than Market Price
Government policy is partly responsible for this. Competition from efficient foreign
producers such as Brazil means that imports would wipe out the domestic mills. The
inefficiency of the domestic mills is so grave that they incur one of highest production
costs. But the government also must keep the customs happy for political reasons. It
therefore orders mills to sell sugar at prices far below cost and hence incur losses.
4.8 Financial problem
Financial problem of the sugar industry in Madhukhali is an acute problem that attribute
to many other problems that let not sugar industry stand on its own foot. Due to
financial losses through the years, the Faridpur sugar mills can not pay salaries and
wages to employees; can not pay the bills of the farmers for their supplied canes in time
and has to count interest on borrowed money from the bank. The scenario is common
for all three sugar mills. To resolve the financial problem there should be an effective

22. 22
measure to improve the management system of the mills that may increase resource
utilization efficiency and reduction in production cost of sugar.
However, there are many other factors that attribute to the losses of the industry, of
which management is the key factor along with human and technical factors.
Government should take strong pragmatic initiative to improve the situation.
4.9 Others problem
Farmers in Madhukhali upazila, Faridpur, were simultaneously baffled and upset by a
new kind of insect attack to their sugarcane fields in the past couple of days.
The insects, grasshoppers, though not an unfamiliar object in the countryside, previously
used to come in small groups. But this year they came swarming, and are causing
damage to crops, especially sugarcanes.
The worst affected area was the Mesordia village, where about hundred acres of
sugarcane fields were attacked by the plant-eaters.
Farmers said these grasshoppers attack young stalks of sugarcanes at night, and lie
hiding under grass during the day. To add to their concern, the insects are also resistant
to the pesticides used to eliminate regular plant pests.
Daud Hossain, a farmer at Mesordia, said: “The insects have pesticide resistance and
can eat almost twice their body weight in a single day, which is worrying. We are now
using nets to catch them.”
Sources at Faridpur Sugar Mill said sugarcane is being cultivated over 4200 hectares of
land under the supervision of the mill. If the grasshopper attack continues at its current
pace, the production target of 125,000m tonnes may not be reached.
Komol Kanti Das, managing director of the mill, said samples of the insect have been
sent to Dhaka for examination, adding that local experts are also working in the fields to
find a solution.
Vashkar Chakraborty, deputy director of the Department of Agricultural Extension
(Faridpur), told the Dhaka Tribune that heavy rainfall in the last couple of weeks
triggered the dramatic growth of the insects, which usually remain in a dormant state.
A source at the mill said every year the government allocates money to help farmers
remove weeds from their cropland and keep them clean. However, mill authorities do
not distribute the money among them, hence the breeding of the insects.

23. 23
CHAPTER-5
5.1 Conclusion and Recommendation
Based on the findings of this study the following conclusions are drawn and some
recommendations are given in order to increase sugar production and to revive the
bright present situation and prospect of sugar mill in Faridpur.
1. Sugar is an essential food commodity with universal demand. If local production
is inadequate, sugar has to be imported with the expense of foreign currency.
Local production of sugar can meet only 14.0% of annual requirement for
domestic consumption. This indicates the acute necessity of increasing sugar
production in Faridpur. A long term policy is needed to increase sugar
production in phases up to the level of self sufficiency.
2. The Faridpur sugar mills are failing to achieve their production targets for
inadequate supply of sugarcane from the growers. The farmers are not interested
to grow more sugarcane as because the mills do not pay fair price for their canes
and they do not get their money in due time rather they are paid in installments
after Problems and prospect of sugar industry 292 several months and sometimes
they have to pay bribe for selling sugarcane and getting money.
3. Another cause for inadequate supply of sugarcane to sugar mills is the use of
indigenous and power sugarcane crushers by gur producers within the sugar mill
Faridpur; a substantial part of sugarcane is consumed for gur production. Even
the contract farmers supply their canes to gur producers, if higher price is
offered.
4. Faridpur sugar area under sugarcane is decreasing at a rate of 0.15 ha per year,
which indicates that the growers are losing interest in growing sugarcane
because of the mismanagement and corruption of the Faridpur sugar mills
regarding procurement of sugarcanes from the growers. Faridpur sugar mills
should have a clear schedule for sugar production by the contract growers and a
schedule for sugarcane procurement from each farmer during the operational
period of the mills. So the sugar mills should also improve their management
system and stop corruption by the stuff.

24. 24
5. Sugarcaneis still a profitable cash crop for the growers. All kinds of inputs and
services should be made available to them in due time and all of their harvests
should be procured by the sugar mills in Faridpur with fair price as per schedule
which has been circulated to them well ahead of time. If the growers can sell all
of their harvested crop with a good profit margin, they will be encouraged to
grow more sugarcane for the sugar mills in Faridpur.
6. Sugar recovery is low in sugar mills as because they are using old machines and
the farmers are supplying canes with low sugar content. The sugar mills should
replace the old machines or renovate the sugar production units. The growers
should also be motivated to grow recommended varieties of sugarcane with high
sugar content.
7. Advisory or extension services for good agricultural practices (GAP) in sugarcane
production must be made available to the sugarcane growers so as to enable
them to get higher yield and maximum return.
8. The number of persons employed in a mill should be optimized on the basis of
sugar production capacity of the mill; this will cut down the overhead cost and
thus minimize the production cost of sugar. Training should be provided to the
employees to improve their skill.
9. Previously the sugar mills could earn money by selling the by-products such as
bagasse and molasses. Some initiatives are required for utilization of these
products. Bagasses can be utilized by the paper mills and molasses by some
private companies. The possibility of using bagasse for small electricity
generating plant can be explored.

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REFERENCES
[1] Schorn P M, Peacock S D, Cox M G S and Love D J (2005), ‘A Structured
Approach to Sugar Factory Design’, Proc. S. Afr. Sug. Technol. Ass. (2005) 79, pp. 273
[2] R.L. Earle (2004), “Unit Operations in Food Processing”, NZIFST, Cahpter.4,
Material and Energy,
Balance Bureau of Energy Efficiency, pp. 82-93.
[3] Wayne C. Turner (1999), “Unit Operations in Food Processing”, NZIFST,
Cahpter.4, Material and Energy, Balance Bureau of Energy Efficiency, pp. 82-87.
[4] Annual Report, Energy Audit Reports of National Productivity Council (2010),
Faridpur, Bangladesh.

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Bibliography
 www.wikipedia.com
 http://www.nasbnigeria.org
 www.ifrs.com
 Intermediate Accounting book