Bangladesh : Sugar, edible oil imports surge as dollar supply improves
Bangladesh’s imports of essential commodities rose in early FY26, driven by improved foreign exchange availability and lower global prices. Sugar, palm oil, oilseeds, and wheat imports increased sharply, ensuring adequate domestic supply. Lower sugar prices and smoother LC openings supported market stability.
Bangladesh’s imports of key essential commodities rose in the first quarter of fiscal year 2025-26 (FY26), supported by improved availability of foreign exchange and lower prices in the international market.
The country remains heavily dependent on imports for sugar, palm oil, soybean oil and wheat due to inadequate domestic production.
Bangladesh imports more than 95 percent of its annual sugar requirement, estimated at around 20 lakh tonnes, according to the Bangladesh Trade and Tariff Commission (BTTC).
Data from the Bangladesh Bureau of Statistics (BBS) showed that refiners imported 8.23 lakh tonnes of raw sugar during the July-September period of FY26, marking an 87 percent increase from 4.4 lakh tonnes a year earlier.
Taslim Shahriar, deputy general manager of Meghna Group of Industries, said global sugar prices had declined and banks were now opening letters of credit (LCs) more smoothly after the easing of the dollar crisis. “Sugar imports have so far been satisfactory.”
World Bank Commodities Price Data showed that international sugar prices fell to 36 cents per kilogramme (kg) during the July-September period, down from 43 cents a year earlier.
In Dhaka, sugar sold for Tk 95-Tk 110 per kg, down 19 percent from a year ago, according to data compiled by the Trading Corporation of Bangladesh.
“There is no problem with LC openings now. Commodity prices are generally low, except for soybean oil, which remains expensive due to its use in biofuel production,” Shahriar said.
Imports of palm oil, another highly import-dependent commodity, also surged, rising 40 percent year-on-year to 7.44 lakh tonnes in the first quarter, showed BBS data.
In contrast, soybean oil imports declined during the period after jumping 42 percent in FY25.
BTTC estimates Bangladesh’s annual demand for edible oil at 22 lakh tonnes. However, oilseed imports continued to increase as local crushers focused on processing oilseeds to extract edible oils and produce by-products such as soybean meal and rapeseed cake to meet demand from the feed industry.
Local crushers imported 22.79 lakh tonnes of oilseeds, mainly soybeans, in FY25, posting a 1 percent increase. During the July-September period of FY26, oilseed imports surged 52 percent year-on-year to 5 lakh tonnes.
Businesses say the growing forex reserve and increased demand are encouraging more imports.
“We have been able to open letters of credit for more than a year now as the foreign exchange situation has improved. There is also an uptick in demand,” said Mohammad Mustafa Haider, group director of TK Group, a major commodity importer and processor.
Bangladesh Bank (BB) data showed that LC openings for imports of consumer goods, including rice, wheat and sugar, increased in the four months to October this fiscal year. Imports of industrial raw materials such as crude edible oil and oilseeds also rose during the period.
“Demand for edible oil has remained stable, but demand for wheat for both industrial and household use has increased,” Haider said.
He added, “Gas supply to factories has improved, allowing them to operate more smoothly. This has helped workers earn and spend more.”
Wheat imports have surged significantly. According to the food ministry, total wheat imports stood at 29.57 lakh tonnes between July 1 and December 14 of the current fiscal year. The figure is nearly half of the 62.35 lakh tonnes imported in the whole of FY25.
Biswajit Saha, director of corporate and regulatory affairs at City Group, said the supply of essential commodities was expected to remain adequate during Ramadan, when demand typically rises.
TK Group Director Haider expects consumer demand to increase ahead of the general election scheduled for February 12 and during Ramadan, which will begin after mid-February.
“We expect a spike in demand, but it is difficult to predict how it will play out in reality,” he said.
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Source : The Daily Star
