The plan to build a new sugar mill to replace the Penang Mill in Rakiraki depends on having enough sugarcane in the area, according to businessman and sugar industry figure, George Shiu Raj, reported FBC News.
Raj emphasized that the future of the proposed mill is uncertain because sugarcane production in Rakiraki has dropped sharply, from 300,000 tonnes to 150,000 tonnes a year.
“At the end of the day, if people talk about building a mill in Penang, we need to be realistic. We need to have the sugarcane first,” Raj said.
He added that sugarcane supply should be restored to at least 250,000 tonnes to make the new mill feasible.
Meanwhile, last month, the Minister for the Sugar Industry, Charan Jeath Singh, mentioned the possibility of buying a second-hand sugar mill to replace the Penang Mill. Singh also said that experts from the Food and Agriculture Organization have reviewed the sugar industry, and their report will provide a clearer picture of the sector. The findings are expected to be presented to the Sugar Ministry later this year.
