The Ministry of Industries has requested the Ministry of Finance to issue a Tk 80 billion government bond to address the significant liabilities of the Bangladesh Sugar and Food Industries Corporation (BSFIC) to six state-run banks.
The BSFIC owes approximately Tk 69.5 billion to five state-run banks. Meanwhile, the corporation is due Tk 79.71 billion in government subsidies to cover trade deficits and operational losses. The BSFIC has proposed adjusting these dues with the requested bond, citing financial challenges that make it impossible to service debts or sustain operations independently.
BSFIC, the parent body of 15 state-owned sugar mills, has struggled to cover production costs. According to the Bangladesh Economic Review, BSFIC’s accumulated losses reached Tk 91.75 billion between FY2005-06 and FY2023-24. The mills collectively produced 0.21 million tonnes of sugar annually—far below the national demand of over 2.2 million tonnes. The gap is bridged by importing 2.2–2.4 million tonnes of raw sugar annually.
Under the Public Corporations (Management Coordination) Ordinance of 1986, the government must reimburse financial losses incurred by state corporations due to policy directives. However, of the Tk 101 billion owed as compensation until FY2023-24, only Tk 21.31 billion has been provided as subsidies.
In FY2023-24 alone, the government subsidized Tk 2.8 billion, but this support was insufficient to alleviate the financial strain. Due to interest accruals, the mills face an annual increase of Tk 10 billion in liabilities.
