Speculations of increased import costs have led to a rise in wholesale sugar prices, as the National Board of Revenue (NBR) did not extend duty benefits for sugar imports. The volatility in domestic sugar prices prompted the commerce ministry to request lower duties for refiners in an effort to stabilize the market. In February, the NBR reduced regulatory duty by 5 percentage points and eliminated import duties on unrefined and refined sugar. However, these benefits expired on May 31, resulting in a price increase of Tk 140 to Tk 250 per maund (37 kilograms) of sugar.
Market traders predict further price hikes. Refiners have not received any instructions regarding duty benefits, which is affecting the wholesale business. The uncertain situation may lead to further price increases if duty benefits are not retained. Bangladesh heavily relies on sugar imports, as local production is insufficient to meet the annual demand of 20 to 22 lakh tonnes. Higher production costs have also forced local millers and refiners to adjust their prices, causing consumers to pay more than the government-fixed rate.
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