Despite the surging price of sugar, local refiners in Bangladesh have called on the government to raise its price by Tk 25 per kilogramme in anticipation of high demand during the upcoming Eid-ul-Azha festival. The Bangladesh Sugar Refiners Association (BSRA) proposed an increase in the maximum retail price of packed sugar from Tk 125 to Tk 150 per kg, and loose sugar from Tk 120 to Tk 140 per kg. The BSRA requested the Ministry of Commerce (MoC) to take necessary action to implement the new rates starting June 22. While the MoC confirmed receiving the proposal, no approval has been granted yet.
The BSRA justified the proposal based on the rising international market price of sugar, increased bank loan interest rates, ship-delay penalties, and refiners’ production costs. However, analysts argue that commodity prices are generally declining due to consumption constraints and high inflation, and increasing sugar prices would further burden consumers. The BSRA purchases raw sugar at international rates, refines it, and sells it locally. Despite the government’s fixed rates, sugar is being sold at higher prices in the local market. The annual demand for sugar in Bangladesh is around 2.0-2.2 million tonnes, with most of it being imported.
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