Sugar mills are making losses despite the demand, because of the continuous increase in the interest on the loans taken by the factories, said Industries Minister Nurul Majid Mahmud Humayun.
"Sugar mills are being run with high-interest loans from banks due to lack of financial support from the government. Costs and losses increased due to continuous increase in interest on loans," he said in response to a question from Jatiya Party lawmaker Masiur Rahman Ranga during the question and answer session of the Parliament on Tuesday.
Due to the fixing of sugarcane and sugar prices by the government, there is a need to reduce the sugar prices depending on the market demand and consumer concerns, but the sugarcane prices remain fixed, resulting in higher losses, he added.
"Sugarcane cultivation is declining due to crop diversification. Losses of sugar mills are increasing as they fail to produce sugarcane as per target.
He further said failing to invent improved sugarcane varieties, lack of skilled manpower and labour-intensive factories have reduced the rate of sugar extraction.