After several months of steady decline, sugar prices have risen sharply at Khatunganj in Chattogram, the country’s second-largest wholesale market, triggering concerns over possible market manipulation and supply problems, reports The Business Standard.
Wholesale prices of sugar at Khatunganj have increased by Tk120 to Tk150 per maund within a week, ending a prolonged downward trend. The sudden rise has worried consumers and regulators, especially with Ramadan drawing closer.
Market records show that sugar was priced at Tk4,440 per maund in July 2024 before gradually falling to Tk3,210 by late November. This downward movement has now reversed, with wholesale prices reaching around Tk3,400 per maund this week, compared with less than Tk3,250 a week earlier. Although retail prices have not yet fully reflected the increase, traders say continued rises at the wholesale level will soon affect consumers.
Traders have linked the price jump to a halt in white sugar imports and reduced supply from local mills. The Khatunganj Trade and Industries Association said earlier government approval for white sugar imports had helped keep supplies steady and prices under control. With imports now stopped, the market has become more dependent on locally refined sugar.
Mill owners have pointed to routine maintenance and repair work carried out in December, which has temporarily slowed refining operations. This has reduced supplies from mills and extended delivery times. Wholesalers say they are now waiting eight to eleven days to receive sugar from mills, much longer than usual.
However, consumer rights groups have dismissed these explanations, accusing millers of deliberately restricting supply to push up prices. The Consumer Association of Bangladesh (CAB) claims that there is no real shortage and that supplies are being held back to raise prices ahead of Ramadan, taking advantage of reduced oversight during the election period.
SM Nazer Hossain, divisional president of CAB in Chattogram, said preparations for higher prices had begun well before Ramadan, despite sufficient stocks in the market. He said weaker monitoring due to election-related administrative pressure was allowing some traders to exploit the situation, leading to instability.
Raising similar concerns, Mohammad Shahid, joint general secretary of the Chattogram Dealers’ Association, said global sugar prices have fallen and import duties have been reduced, which should have lowered local prices. Instead, he alleged, mill owners are keeping prices high to increase profits.
Consumer protection officials said they are watching the situation closely. Mohammad Foyez Ullah, deputy director of the Directorate of National Consumer Rights Protection in Chattogram, said the agency is aware of the reported increase and will take legal steps if any wrongdoing is found.
