Refined sugar imports through Chattogram Port have nearly doubled over the past year, driven by reductions in import duties, according to official figures and industry sources, reported The Business Standard.
This surge has intensified challenges for domestic sugar refiners, with some reporting a drop of over 20% in their raw sugar imports.
In the 2024–25 fiscal year, refined sugar imports via Chattogram Port jumped by nearly 96% to 2,68,380 tonnes, up from 1,36,980 tonnes the previous year.
Industry insiders attribute this sharp increase to the government’s move to lower import duties, combined with a slowdown in raw sugar imports by major local refiners such as S Alam Group and Deshbandhu Group. Additionally, large industrial users—particularly in the food and beverage, pharmaceutical, and dairy sectors—are now increasingly opting to import refined sugar directly.
“For years we sourced sugar locally, but since early 2025, we’ve started importing refined sugar directly. The cost is quite similar to what’s available domestically,” said Raisul Uddin Saikat, chairman of Chattogram-based Albion Laboratories Limited, reported The Business Standard.
Mizanur Rahman, senior deputy general manager at Meghna Group, confirmed the impact of the duty reduction. “One of the main reasons for the increase in refined sugar imports is the lower import duty.”
The import duty on refined sugar was reduced from Tk6,000 to Tk4,000 per tonne, while the rate for raw sugar remains at Tk3,000 per tonne.
This policy shift also led to a significant rise in the value of refined sugar imports, from Tk1,114.07 crore in FY24 to Tk2,203.56 crore in FY25, a 97.79% increase. Customs revenue also rose by 58.33%, from Tk587.27 crore to Tk929.82 crore.
The influx of refined sugar imports has created a tough environment for local refineries. According to the Bangladesh Sugar Refiners Association, the country’s annual sugar demand stands at around 20 lakh tonnes, nearly all of which is met through imports. Major players such as City Group, Meghna Group, Bashundhara Group, TK Group, S Alam Group, and Deshbandhu Group traditionally import raw sugar from Brazil, Argentina, and India for refining and distribution.
However, the dynamics are shifting. “Our raw sugar imports have dropped by nearly 20% in just one year,” said Biswajit Saha, director of City Group. He noted that industrial importers of refined sugar—if they are manufacturers—can avail VAT exemptions on raw material imports, giving them a pricing advantage over domestic refiners.
Chattogram Customs House spokesperson Saidul Islam confirmed this. “Manufacturing companies are eligible for VAT exemptions on raw materials. This benefit also applies to beverage and pharmaceutical companies, just as it does to refining companies.”
