Bangladesh : Sugar prices climb ahead of Ramadan, traders blame syndicates
Sugar prices in Chattogram’s Khatunganj have surged by Tk 150–170 per maund after the government halted white sugar imports. Traders blame supply cuts by major mills, while consumer groups allege syndicates are creating artificial shortages ahead of Ramadan as authorities remain preoccupied with election preparations.
Despite continuous price drops since August 5 of last year due to multifaceted pressures, sugar prices in Chattogram’s Khatunganj wholesale market have surged abruptly this week. In just a few days, the wholesale price of sugar increased by Tk 150–Tk 170 per maund. Traders attributed the rise to the government halting white sugar imports, which has pushed up the price of refined sugar in the country.
Consumer groups, including the Consumer Association of Bangladesh (CAB), allege that sugar mill syndicates are taking advantage of the government being occupied with preparations for the 13th national parliamentary elections. With Ramadan approaching, they claim that artificial shortages are being created to raise prices.
Several traders in Khatunganj revealed that in July 2024, the wholesale price of sugar was Tk 4,440 per maund. By late November, it had dropped to Tk 3,210 per maund. However, prices have started rising again over the past week, though retail markets have yet to feel the impact.
Sources said that to meet the country’s demand, more than 98% of sugar has to be imported each year. In the private sector, five industrial groups—City, Meghna, S. Alam, Abdul Monem Limited, and Deshbandhu Sugar Mill—import raw sugar. Among them, Abdul Monem Limited’s Iglu brand sugar plant has been acquired by another major industrial group, Abul Khair Group. After import, the milling companies process the sugar themselves and then market it. Meanwhile, Deshbandhu Sugar Mill remains shut due to various complications. Although S. Alam Group faced difficulties following the fall of the Hasina government, it has continued supplying sugar. Recently, Khatunganj traders reported that S. Alam Sugar has reduced its sugar supply.
Sources from the National Board of Revenue reported that between July 1 and November 25, 2024–25, a total of 985,760 tons of sugar were imported, including 903,072 tons of raw sugar and 82,668 tons of refined white sugar. Among the raw sugar, Abdul Monem Sugar Refinery Limited imported 9,669 tons, City Sugar Industries 316,235 tons, Deshbandhu Sugar Mills Limited 5,500 tons, Meghna Sugar Refinery Limited 503,623 tons, S. Alam Refined Sugar Industries 67,638 tons, and Pran Dairy Limited 406 tons. All raw sugar is imported from Brazil. With government approval, several business groups imported refined white sugar in the last fiscal year. Refined sugar is also imported as raw material for factories.
According to Khatunganj traders, just a month ago, wholesale sugar was priced at Tk 3,210 per maund. Although prices stabilized around Tk 3,250 per maund for a while, they have started rising again over the past week. On Sunday, sugar was sold at Tk 3,410 per maund.
Syedul Haque, Director of Imam Sharif Brothers in Khatunganj, told Jago News, “At the beginning of the week, ready-to-sell sugar in Khatunganj is being sold at Tk 3,400–3,410 per maund. To get sugar supply from the mills now, one must collect serial numbers. Distribution order (DO) sugar is being sold at Tk 3,360–3,370 per maund, depending on the mill. Obtaining a serial from some mills takes up to 11 days.”
Shahjahan Bahadur, a DO trader in Khulna, said, “Over the past year, sugar prices in Khatunganj have steadily decreased, but production costs remained high. This caused significant losses for the millers. Over the past week, sugar prices have increased slightly.”
Another trader, speaking on condition of anonymity, told Jago News, “On Sunday, sugar from S. Alam Group sold at Tk 3,410 per maund. S. Alam Sugar Mill sells DO sugar from the office of Messrs MA Salam. The factory has now reduced sugar supply. However, fresh sugar DO was sold at Tk 3,320 per maund. To collect fresh sugar directly from the mill gate, buyers must wait in line for at least four days.”
Md Aminur Rahman, General Secretary of Khatunganj Trade and Industries Association, told Jago News, “Since last year, the government allowed the import of white sugar, which helped keep market prices under control. Now, the government has again stopped white sugar imports. As a result, the price of refined sugar in Khatunganj’s wholesale market has risen slightly.”
SM Nazer Hossain, President of the Chattogram Division of the Consumer Association of Bangladesh (CAB), said, “Ahead of Ramadan, business syndicates increase their malpractices. They create artificial shortages to take advantage of rising prices. This is why sugar supply is being reduced artificially, pushing prices up.”
He added, “Dishonest syndicates are taking advantage of the administration being busy with preparations for the upcoming national parliamentary elections in February.”
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Source : Jago News 24
