Bangladesh Refined sugar imports double in FY25 as duty cuts bite local refiners
Refined sugar imports through Chattogram Port nearly doubled in FY25 to 2.68 lakh tonnes, driven by import duty cuts. This surge has pressured domestic refineries, with raw sugar imports declining 20%. Industrial users are switching to direct refined imports, citing cost parity and VAT benefits. Overall sugar imports rose 35.84%, deepening challenges for local refiners.
The import of refined sugar through Chattogram Port has nearly doubled in the span of a year following reductions in import duties, according to official data and industry sources.
This shift has put immense pressure on domestic sugar refineries, with some reporting a decline of over 20% in their imports.
Refined sugar import volume through the port surged by nearly 96% in the 2024-25 fiscal year to 2,68,380 tonnes, up from 136,980 tonnes a year ago.
Speaking to TBS, industry insiders attribute this sharp rise in refined sugar imports to lower import duties and a declining trend in raw sugar imports by major local refineries such as S Alam Group and Deshbandhu Group. Additionally, industrial users – particularly in the food and beverage, pharmaceutical, and dairy sectors – are increasingly opting to directly import refined sugar as raw sugar imports become less feasible.
Key clients of local sugar mills, such as those in the food and beverage, pharmaceutical, and dairy sectors, are increasingly opting for direct refined sugar imports. “For several years, we sourced sugar from the local market. Since the beginning of 2025, we’ve started importing refined sugar directly, and the price is quite comparable to local options,” said Raisul Uddin Saikat, chairman of Chattogram-based pharmaceutical company Albion Laboratories Limited.
Mizanur Rahman, senior deputy general manager at Meghna Group, confirmed the direct link between duty cuts and increased imports. “One of the main reasons for the rise in refined sugar imports is the reduction in import duty.”
The duty on refined sugar has been lowered from Tk6,000 per tonne to Tk4,000, while the duty on raw sugar remains at Tk3,000 per tonne.
The overall import value of refined sugar also saw a substantial increase, rising from Tk1,114.07 crore in FY24 to Tk2,203.56 crore in FY25 – an increase of 97.79%. This also led to a 58.33% boost in customs revenue, from Tk587.27 crore to Tk929.82 crore.
Challenges for local refiners
The escalating refined sugar imports pose a significant challenge for the domestic sugar refining industry. According to the Bangladesh Sugar Refiners Association, the country’s annual sugar demand is approximately 20 lakh tonnes, almost entirely reliant on imports. A handful of companies, including City Group, Meghna Group, Bashundhara Group, TK Group, S Alam Group, and Deshbandhu Group, typically import raw sugar from countries like Brazil, Argentina, and India for processing and distribution.
However, the landscape is changing. “Our raw sugar imports have decreased by almost 20% in one year,” said Biswajit Saha, director of City Group. He highlighted that companies importing refined sugar benefit from VAT exemption facilities on raw material imports if they are manufacturing entities, which creates an uneven playing field for local refiners.
Saidul Islam, deputy commissioner and spokesperson for Chattogram Customs House, confirmed this, stating, “If a company is a manufacturer, they receive VAT exemption on raw material imports. Beverage and pharmaceutical companies also receive the same VAT benefits as refining companies.”
Declining raw sugar imports
Raw sugar imports have been on a downward trend for several years, aggravated by the Russia-Ukraine war, dollar shortages, and rising sugar prices. Notably, S Alam Group’s raw sugar imports have been almost halted since the fall of the Awami League government a year ago, and Deshbandhu Sugar Mill has recently shut down. This has further pushed beverage and pharmaceutical companies towards importing refined sugar.
Aziz Chowdhury, head of commercial at Abdul Monem Limited, a major raw sugar importer, shared his company’s struggles. “Previously, our annual raw sugar import was about 3 lakh tonnes. Due to a decline in refined sugar customers and LC complexities, our import volume has now dropped to 2 lakh tonnes.”
Overall import trends
Despite the challenges faced by raw sugar importers, the overall import of both raw and refined sugar through Chattogram Port has increased. In FY25, over 12.17 lakh tonnes of raw and refined sugar were imported, with an import value of over Tk8,000 crore, generating about Tk3,300 crore in customs revenue.
This represents a 35.84% increase in total sugar imports compared to over 7.81 lakh tonnes imported in FY24, which had an import value of over Tk5,100 crore and yielded over Tk2,658 crore in revenue.
Bangladesh’s annual sugar demand ranges from 20 to 22 lakh tonnes, with local sugar mills producing only 30 to 35 thousand tonnes. The remaining demand is met by domestic refining companies that import and process raw sugar for the market.
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Source : The Business Standard
