In Bangladesh, the demand for government-produced sugar is soaring despite sellers charging higher prices than the official rates. The country’s annual sugar demand is approximately 18 lakh metric tons, with government sugar mills contributing a mere 21,313 tons in the last fiscal year, less than 1.5% of the total demand.
Private companies import the remaining sugar, exerting control over market prices. The government-set prices for open and packed sugar are Tk 130 and Tk 135 per kg, respectively, but market prices exceed Tk 150 per kg. Despite an increased government-set price, the scarcity continues due to declining production, dropping from 82,000 metric tons in 2019-20 to 21,313 metric tons in 2022-23.
Of the 15 government-operated sugar mills, only nine are currently operational, and most are facing losses. The government aims to produce 39,000 metric tons of sugar in the current season, contingent on timely payments for sugarcane.
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