Debt-laden Zeal Bangla begins another crushing season

The Zeal Bangla Sugar Mills in Dewanganj upazila of Jamalpur has resumed production amid a mounting debt of Tk 656.75 crore, more than half of which is accrued bank interest.

The mill began this year's sugarcane crushing season on November 28.

According to mill officials, the target for this season is to crush 70,000 tonnes of sugarcane to produce 5,000 tonnes of sugar.

Established in 1957 with financial and technical assistance from the then Pakistan and New Zealand governments, the mill is one of the oldest and most iconic heavy industrial units in Jamalpur and one of the first three sugar mills in Bangladesh.

It went into operation during the 1958-59 crushing season.

Its name was changed from Zeal Pak Sugar Mills Ltd to Zeal Bangla Sugar Mills Ltd after the independence of Bangladesh. The mill was declared a state-owned enterprise in 1972.

It is currently operated under the Bangladesh Sugar and Food Industries Corporation, with a daily crushing capacity of 1,016 tonnes of sugarcane and a total production capacity of 10,150 tonnes of sugar.

Over the decades, the mill has completed 67 crushing seasons but made profits in only 18.

Local farmers have alleged mismanagement, syndicate influence, and various complications within the mill that have led to losses year after year.

They also complained that irregularities in procurement, price fixing, and delayed payments by the mill authorities have been pushing sugarcane cultivation into decline.

"There is no profit in cultivating sugarcane. The mill delays paying us, so I have reduced sugarcane cultivation," said Manik Miah, a sugarcane grower.

Another farmer, Samad, said, "If the mill authorities ensure proper support for us, sugarcane cultivation will rise again."

Tarikul Alam, managing director of the sugar mill, said the government and the Ministry of Industries have initiated a five-year roadmap for the mill's recovery.

He called for government initiatives to modernise the mill, diversify its production, and promote sugarcane cultivation to enable the mill to return to profitability.