Chattogram: After months of steady decline, sugar prices in Chattogram’s Khatunganj wholesale market have risen sharply this week. The sudden increase comes despite prices falling continuously since August 5 last year due to various pressures. Within a few days, wholesale prices went up by Tk 150 to Tk 170 per maund, with traders linking the rise to the government’s decision to stop imports of white sugar, which has driven up refined sugar prices across the country, reports Jago News 24.
Consumer rights groups, including the Consumer Association of Bangladesh (CAB), have accused sugar mill owners of exploiting the situation. They claim that with the government focused on preparations for the 13th national parliamentary elections and Ramadan approaching, artificial shortages are being created to push prices higher.
Traders in Khatunganj said that in July 2024, sugar was selling at Tk 4,440 per maund at the wholesale level. By late November, the price had dropped sharply to Tk 3,210 per maund. However, prices have started climbing again over the past week, although the impact has not yet fully reached retail markets.
Industry sources said Bangladesh depends heavily on imports to meet its sugar demand, with more than 98 per cent of the requirement coming from abroad each year. In the private sector, five large groups — City, Meghna, S. Alam, Abdul Monem Limited and Deshbandhu Sugar Mill — import raw sugar. Abdul Monem Limited’s Iglu sugar factory has recently been taken over by Abul Khair Group. After importing raw sugar, the companies refine and sell it themselves. Deshbandhu Sugar Mill remains closed due to various problems, while S. Alam Group, despite facing difficulties after the fall of the Hasina government, has continued supplying sugar. Traders said S. Alam has recently reduced the amount of sugar it is releasing into the market.
According to the National Board of Revenue, between July 1 and November 25 of the 2024–25 fiscal year, Bangladesh imported 985,760 tonnes of sugar. This included 903,072 tonnes of raw sugar and 82,668 tonnes of refined white sugar. Of the raw sugar imports, Meghna Sugar Refinery Limited brought in the largest share, followed by City Sugar Industries, S. Alam Refined Sugar Industries, Abdul Monem Sugar Refinery Limited, Deshbandhu Sugar Mills Limited and Pran Dairy Limited. All raw sugar was sourced from Brazil. With government approval, several business groups also imported refined white sugar during the last fiscal year, including for use as industrial raw material.
Traders said that just a month ago, wholesale sugar was selling at Tk 3,210 per maund. Prices then remained steady at around Tk 3,250 for some time before starting to rise again last week. On Sunday, the wholesale price reached Tk 3,410 per maund.
Syedul Haque, a director of Imam Sharif Brothers in Khatunganj, said wholesale prices for ready sugar were now between Tk 3,400 and Tk 3,410 per maund. He said buyers now need to obtain serial numbers to receive supplies from mills, while distribution order sugar is selling at slightly lower rates depending on the producer. In some cases, he added, buyers have to wait up to 11 days to get a serial number.
Shahjahan Bahadur, a sugar trader dealing in distribution orders in Khulna, said sugar prices in Khatunganj had been falling steadily over the past year even though production costs stayed high, causing losses for mill owners. He said prices have risen slightly over the past week.
Another trader said sugar from S. Alam Group was sold at Tk 3,410 per maund on Sunday. He said the company has reduced its supply, although fresh distribution orders were sold at Tk 3,320 per maund. Buyers collecting sugar directly from the factory now have to wait several days for delivery, he added.
Md Aminur Rahman, general secretary of the Khatunganj Trade and Industries Association, said the government’s earlier decision to allow white sugar imports helped keep prices stable. He said the recent halt on such imports has once again pushed up refined sugar prices in the wholesale market.
SM Nazer Hossain, president of the Chattogram division of CAB, said business groups often increase unfair practices ahead of Ramadan. He alleged that supply is being deliberately restricted to raise prices and said such actions are being carried out while the administration remains busy with preparations for the national elections scheduled for February.
