A fall in sugar supply has begun to push prices higher across Bangladesh, with the sharpest impact visible in Khatunganj, the country’s largest wholesale market for consumer goods.
Over the past week, wholesale sugar prices in Khatunganj have risen by more than Tk150 per maund, while retail prices have increased by Tk4 to Tk5 per kilogram in different markets, traders said.
Merchants in Khatunganj said supplies from City Group, one of the country’s largest sugar refiners, have dropped to nearly half of normal levels as lower raw sugar imports limited refined sugar output. At the same time, supply from S Alam Group has reportedly stopped, further tightening the market.
Alamgir Parvez, proprietor of consumer goods importer M/s R M Traders, said City Group’s reduced raw sugar imports were the main driver behind the price increase.
“Earlier, the group supplied around 15,000 tonnes of sugar daily. Now supply has fallen to about 7,000 to 8,000 tonnes. With S Alam Group’s supply also stopped, overall availability has declined compared to demand,” he said.
Wholesale sugar is currently selling at around Tk3,400 per maund in Khatunganj, up from slightly above Tk3,200 a week earlier, Parvez said. About a year ago, prices had climbed as high as Tk4,500 per maund before easing gradually.
The government’s Agricultural Marketing Office has also confirmed the upward trend, citing reduced supply and the closure of S Alam Group’s sugar refinery in Chattogram as contributing factors.
Chattogram district Senior Agricultural Marketing Officer Shah Mohammed Morshed Kader said prices had risen in both wholesale and retail markets over the past week.
“At the wholesale level, sugar is selling between Tk87 and Tk91 per kilogram. In retail markets, prices have increased by up to Tk5 per kilogram, depending on location,” he said, adding that there was currently no strong election-related pressure on the sugar market.
In several upazilas of Chattogram, dealers said they were unable to supply sugar in line with demand, with overall availability falling by nearly half.
Mofizul Islam, owner of Islam Traders in Dohazari Bazar, said the price of a 50-kg sack of sugar had increased by Tk250 to Tk260 within a week.
“We bought a sack at Tk4,420 a week ago. Now it costs between Tk4,680 and Tk4,700,” he said. At retail, sugar is selling at Tk95 per kg in bulk and Tk98 per packet.
In Mirsarai’s Mithachhara Bazar, Manik Store owner Manik Chandra Das said sugar that sold at Tk94 per kg about 10 days ago is now priced at Tk100 per kg.
According to the Bangladesh Sugar Refiners Association, Bangladesh’s annual sugar demand stands at around 2 million tonnes, almost entirely dependent on imports. Major local refiners, including City Group, Meghna Group, Bashundhara Group, TK Group, S Alam Group and Deshbandhu Group, import raw sugar mainly from Brazil, Argentina and India before refining it locally.
Raw sugar imports have declined in recent years due to the Russia–Ukraine war, dollar shortages and rising global prices, industry participants said. Following political changes, S Alam Group’s raw sugar imports have almost stopped, while Deshbandhu Sugar Mills has shut down because of heavy debt.
Industry sources said imports of refined sugar through Chattogram Port have surged after import duties were reduced, putting pressure on local refineries. In the 2024–25 fiscal year, refined sugar imports rose 96 per cent to 268,380 tonnes, compared with 136,980 tonnes a year earlier.
As food and beverage companies, pharmaceutical firms and dairy producers increasingly import refined sugar directly, demand for locally refined sugar has weakened. Refineries have responded by cutting raw sugar imports by 20 to 30 per cent, contributing to the current supply squeeze.
Officials from several sugar refineries said the reduction in raw sugar imports was directly linked to the surge in refined sugar imports. Attempts to contact City Group Director Biswajit Saha for comment were unsuccessful.
