As compared to January, the country saw a 27 percent increase in sugar imports in February. In January, a total of 93,000 metric tons of sugar were released from sea and land ports. According to information available from the National Board of Revenue (NRB), the country imported 127,000 tons of unrefined sugar in February.

Besides, the activities are on to release another 112,000 metric tons of sugar from the outer anchor of the Chittagong port. A vessel named Belltide has arrived with 53,000 metric tons of which 45,900 tons have already been released. Process is underway to release the remaining sugar. Another ship carrying nearly 59,000 tons also arrived. Some 15,833 metric tons have been released and the activity is ongoing to release the remaining 43,000 tons.

Considering the existing stocks and imports, there is no reason for a sugar crisis in the country, say the importers. Normally, the monthly supply of sugar stands at nearly 150,000 metric tons, they say. It is estimated that this will go up to about 250,000 metric tons in the month of Ramadan although many think that it could be little less due to ongoing high inflation and diet change. Considering everything, the Ramadan demand can be met comfortably with the existing supply, stocks and the amount of sugar waiting to be released from ships.

Meghna Group of Industries Chairman Mostafa Kamal told Bonik Barta, “The local sugar production is almost zero. Facing different adversities, we import unrefined sugar and refine it in an effort to ensure the supply as per the demand. There will be no crisis in terms of imports and supply even if the demand increases in Ramadan.”

In first eight months of the current 2023-24 fiscal year, a total of 982,000 metric tons of sugar were released from sea and land ports of the country. The customs value of the sugar stands at Tk 63.85 billion ($582.39m). According to NBR, three largest groups of industries – Meghna, City and S Alam – imported 81 percent of the total sugar. Besides, Deshbandhu Sugar Mills Limited and Abdul Monem Sugar Refinery import sugar to a small extent. Mainly, they bring raw sugar from Brazil and neighboring India and sell it after refining in their own mills.           

Individuals involved in the sector say that the country has a demand of nearly 150,000 metric tons of sugar every month. Usually, the demand rises by at least 50 percent in Ramadan and summer seasons. The demand may reach up to 250,000 metric tons, as Ramadan and summer are occurring at the same time of the year. It is possible to meet the additional demand with the existing stocks and imports.

The importers claim that the sugar supply is normal, but it is not reflected in the market. The prices of sugar both in retail and wholesale markets saw an upward trend on Wednesday owing to rumors about a crisis. One kilogram of sugar would sell at Tk 145 in Chittagong even a week ago. Retailers are selling it now at Tk 145. The retailers are blaming wholesalers and trading companies for the hike.

Abdur Rahim, the proprietor of a department store on Commerce College Road in Chittagong, said that the prices of sugar are on the rise, as the wholesalers have reduced the sale.

Visiting Chittagong’s Khatunganj that houses the largest wholesale market in the country, it was found that on Monday one maund of sugar (37.32 kilograms) was sold at Tk 4,930. The wholesale prices started to go up from Tuesday morning. At the end of the day, the price increased to Tk 5,020. The price shot up further in the evening of Wednesday to Tk 5,060. That means, the price per maund increased by at least Tk 130 in just two days.       

About the reasons behind the increase, people concerned say that the trading companies started to show reluctance in selling sugar on Tuesday following the fire at a sugar warehouse belonging to S Alam Group, one of the largest importers and refiners of the country. It is alleged that ahead of the Ramadan and summer, the trading companies and the large wholesalers are trying to impact the market by increasing the prices of sugar despite sufficient stocks in the country.     

Businesspeople say that rumors have been circulated that 100,000 tons of sugar were burnt in that fire. But, the warehouse has the maximum capacity of 60,000 tons. The fire could not spread due to the efforts of the fire service. The amount of sugar burnt cannot impact the market in the country. A section of traders is trying to destabilize the market temporarily taking the advantage of the situation. The market will return to stability once sugar from the mills starts coming to Chittagong.

Anwar Hossain Chowdhury, joint general secretary of Bangladesh Sugar Dealers Business Association, told Bonik Barta, “Consumer market is not supposed to be affected due to crisis at one company. With the imported sugar, the supply will remain normal during the Ramadan or summer seasons. Besides, government mills produced extra 10,000 tons of sugar this year. The temporary instability created due to the fire at a warehouse in Chittagong will go away soon.”       

Five entities -- Meghna, City, S Alam, Abdul Monem and Deshbandhu – imported the whole amount of 127,000 tons of sugar that the country imported all the sugar in February. Individuals concerned say that the sugar production at the government mills has decreased to a significant extent. Due to production shrinkage locally, the control of the market went to larger groups. Currently, these five enterprises are meeting the demand of sugar in the country.

In the first eight months of the ongoing fiscal, Meghna Group of Industries imported the highest amount of sugar. It brought 347,000 tons of sugar at a cost of Tk 24.66 billion. Chittagong-based S Alam Group imported 246,000 tons at a cost of Tk 13.03 billion while City Group brought in 198,000 tons priced at Tk 12.87 billion. Apart from them, Deshbandhu imported 97,455 tons priced at Tk 7.15 billion and Abdul Monem Group released 90,500 tons of sugar at a cost of Tk 5.97 billion.