Sugarcane cultivation in the Rajshahi agricultural region has dropped by nearly 52 per cent over the past decade, triggering concerns about the long-term future of the crop in one of the countryтАЩs key sugar-producing belts, New Age reported.
The region, comprising Rajshahi, Natore, Naogaon and Chapainawabganj districts, has traditionally been a major contributor to national sugarcane output. However, official data show a steady decline in the area under cultivation.
According to the Department of Agricultural Extension, sugarcane was grown on 40,867 hectares of land in the 2016тАУ17 fiscal year. By 2025тАУ26, the area had fallen to 19,340 hectares.
While yield per hectare has remained relatively stable, total production has decreased in proportion to the reduced land coverage. The region produced more than 1.80 crore tonnes of sugarcane in 2016тАУ17, but output has fallen to around 1.11 crore tonnes in the current fiscal year.
Farmers attribute the decline to low profitability, rising input costs and delays in payments from sugar mills. Ahad Ali, a farmer from Paba upazila in Rajshahi, said growers often have to wait months to receive payment. With fertiliser and labour costs increasing, he said sugarcane cultivation is no longer financially attractive.
He also pointed out that the crop requires 12 to 14 months to mature, making it less appealing compared to short-duration crops such as paddy, vegetables and maize, which provide quicker returns.
The fall in cultivation has directly affected operations at two state-owned factories тАФ Rajshahi Sugar Mills Limited and North Bengal Sugar Mills Limited тАФ both of which depend on local cane supply.
Officials at Rajshahi Sugar Mills said the mill, with an annual capacity of about 20,000 tonnes, began crushing on November 29 last year with a target to produce 6,930 tonnes of sugar by processing 75,000 tonnes of sugarcane over 67 days. However, due to shortages, operations lasted only 44 days and production reached 3,172 tonnes, about 15 per cent of its installed capacity.
North Bengal Sugar Mills, which has an annual capacity of 15,000 tonnes, produced about 9,600 tonnes against a target of 13,000 tonnes during the same period.
Financial reports show both mills are under severe strain. Rajshahi Sugar Mills recorded a net loss of around Tk 70 crore in the fiscal year ended June 30, 2025, taking its accumulated losses to over Tk 1,064 crore. Its current liabilities stood at approximately Tk 882 crore, compared to assets of about Tk 65 crore.
North Bengal Sugar Mills posted a net loss of roughly Tk 66 crore, with accumulated losses nearing Tk 986 crore. Auditors noted that its liabilities exceeded its assets by about Tk 964 crore, raising concerns about its ability to continue operations.
Industry observers said reduced cane supply has pushed up production costs, making locally produced sugar less competitive than imports.
Rajshahi Sugar Mills Managing Director Humayun Kabir said production costs are around Tk 300 per kilogram, while the government-fixed selling price is Tk 125 per kg. He said the mill relies heavily on government subsidies to bridge the gap.
Professor ANK Noman of Rajshahi University said the decline reflects deeper structural problems, including outdated machinery, weak management and delayed payments to farmers. He said unless these issues are addressed through modernisation, better pricing mechanisms and improved cultivation practices, farmers are unlikely to return to sugarcane farming.
Data from the Bangladesh Sugar and Food Industries Corporation show that state-run mills recorded combined annual losses of more than Tk 500 crore in the 2023тАУ24 fiscal year, marking the fifth consecutive year of deficits despite closures and cost-cutting measures. Losses had peaked at over Tk 1,036 crore in 2020тАУ21, shortly after six of the fifteen loss-incurring mills were shut down.
