Carew & Company (Bangladesh) Limited has booked the highest net profit in its history for the 2024–25 fiscal year, even as its sugar operations continue to haemorrhage money.

This underscores the widening divide between its modernised businesses and ageing core mill, officials said.

The state-run enterprise reported a net profit of Tk 129.44 crore, up from Tk 112.07 crore a year earlier, according to company data.

Revenue contributions to the government stood at Tk 140.36 crore, broadly unchanged from last year.

The surge came overwhelmingly from the company’s distillery unit, which continues to act as Carew’s financial backbone, said an official sharing the data.

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Meanwhile, the sugar division once again posted a steep loss — Tk 62.35 crore — extending a trend that has plagued the mill for years.

Why the Sugar Unit Keeps Losing Money

Internal records and accounts from officials, workers and farmers reveal a cluster of entrenched problems behind the continued slide.

Low-quality and old sugarcane varieties:

Most sugarcane supplied to the mill consists of outdated varieties with weak recovery rates.

Crushing such cane increases production costs while yielding less sugar.

Declining sugarcane farming:

Farmers cite delayed payments, high irrigation costs and uncertain returns as key reasons for shrinking acreage. Reduced supply has further hit both output and quality.

Outdated machinery:

Much of the equipment on the production line is decades old, requiring frequent repairs and driving up maintenance costs while depressing efficiency.

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Market pressure and cheaper imports:

Inexpensive imported and adulterated sugar continues to dominate retail markets, forcing locally produced sugar to compete at lower price points and eroding revenue.

Management Banks on Modernisation to Stem Losses

Company's Managing Director Rabbik Hasan said record earnings were powered by the distillery but admitted the sugar division remains burdened by a “low recovery rate, low-quality cane and old machinery”.

He said that a Tk 102.21-crore BMRI modernisation project is nearing completion.

“We hope losses in the sugar department will come down once the new automated plant goes into operation,” he said.

At the start of this year’s crushing season, Additional Secretary Rashidul Hasan, who also chairs the Bangladesh Sugar and Food Industries Corporation, said the government is working to introduce improved technology and high-yielding sugarcane varieties.

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Adviser to the Ministry of Industries Adilur Rahman Khan said the main challenge is restoring the sugar unit to profitability, adding that all necessary steps are being taken.

Two workers at the mill, requesting anonymity, said modernisation and automation would boost production and reduce 'system loss'.

Farmers Push for Better Varieties and Pricing

Local growers argue that efficiency improvements at the mill must be matched by reforms in the fields.

Sugarcane farmer Moniruzzaman said expanding high-sugar varieties with improved seeds and fertilisers is crucial.

Another farmer, Shamim Ali, urged Carew authorities to ensure fair and timely prices to encourage farmers to return to sugarcane cultivation.

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Where the Profits Came From

Carew generated profits in five of its six units during FY 2024–25:

*The distillery remained the top earner with revenue of Tk 190.26 crore.

*The organic fertiliser factory earned Tk 78.36 lakh.

*The commercial farm earned Tk 36.09 lakh.

*The experimental farm earned over Tk 30 lakh.

*The pharmaceuticals unit earned Tk 5.20 lakh.

*Only the sugar department reported a loss of Tk 62.35 crore.

Despite that setback, the overall result marks Carew’s strongest financial year on record and extends the upward trajectory from last year’s Tk 112.07 crore profit.