During the parliamentary session held in the Mon State Hluttaw on March 26, the state minister responded to questions raised by the State Hluttaw MP Dr Khin Naing Oo on the future plans of the sugar factory and whether or not the sugar factory is in operation, and the allocated land for sugarcane plantation.

“The Bilin sugar factory could grind 1,500 tons in the past but the factory is over 50 years old and it could no longer operate. The sugarcane production of the local residents has also decreased. Now, a new sugar machine that can grind 300 tons per day has been built and the trial run started on March 3,” said U Min Htin Aung Han.

Ten thousand acres of sugarcane plantation will be needed to run the 1500-ton sugar machine and around 3,000 acres of sugarcane plantation is needed for the 300-ton sugar machine. Plans have been made to grow sugarcane in Bilin, Kyaikhto, and Thaton townships.

According to the minister, the factory and sugarcane farmers have signed a contract and the contract states that the factory will provide the costs for cultivation, sugarcane species, and fertilizers and the farmers have to supply the factory with harvested sugarcane. The contract also includes the issue on buying all the sugarcane.

U Min Htin Aung Han said the State receives Ks 25 million per year as rental fee for Bilin sugar factory. By revitalizing the factory, it will bring many benefits such as job opportunities for local residents, sugarcane becoming the selected choice for local farmers, benefits from using the agricultural land, and increase in domestic production in replacement of foreign products.

Under the policy of privatizing state-owned enterprises, Bilin sugar factory was rented to Shwe Than Lwin Company in 2011. The factory was shut down due to low supply of raw material and several machinery breakdowns. Only 12,700 tons of sugarcane was produced in the 2011-2012 sugarcane year.

Bilin sugar factory has been leased to Super One Company for thirty years with Ks 25 million per year.