Nearly a year and a half ago, sugar retailed at BDT 140–150 a kilogramme in Bangladesh. After the interim government took charge in 2024, prices fell steadily, slipping below BDT 100 a kilo in both wholesale and retail markets. Yet that descent has now reversed, even as international sugar prices continue to fall. Importers and wholesalers are artificially pushing up prices, citing global conflict and energy shortages, and the effect is rippling through retail.
Two months ago, sugar traded at BDT 3,400–3,420 a maund (37.32 kg) at Khatunganj, the country’s largest wholesale market for consumer goods. That was the lowest level in two years, and retail prices had eased to bearable levels. But after the US and Israel launched military strikes on Iran on February 28, fuel oil prices climbed globally. The subsequent rise in domestic fuel prices in Bangladesh saw wholesale sugar prices jumping by BDT 200–205 each maund. On Thursday, sugar changed hands at BDT 3,610–3,615 a maund in Khatunganj, Moulvibazar and other major wholesale hubs — a rise of roughly BDT 120–150 per maund in just two weeks.
Traders say international booking prices for sugar have fallen steadily over the past month. For import-dependent countries such as Bangladesh, the per-pound price has dropped 2 cents. It stood at 15.77 cents on March 26, slid to 13.48 cents by April 17, and then settled at 13.87 cents on April 23. Global futures markets also point downward.
Anwar Hossain Chowdhury, organising secretary of the Bangladesh Sugar Dealers Association, told Bonik Barta: “The sugar market had stabilized after many years. But importers have exploited the recent Middle East war and the domestic fuel price rise to push up prices. A top-tier mill stopped supplying sugar and cut mill-gate supply, which is driving prices higher.” He warned that if summer demand intensifies, the market could rise further.
Meanwhile, the wholesale surge has spilt into retail. Retailers are now charging BDT 3–5 more per kilogramme, and the daily wholesale creep of BDT 10–20 a maund continues to filter through. Fearing further rises, many businesses are hoarding stock and demanding higher prices from customers. Traders attribute part of the retail spike to higher transport costs driven by the fuel price increase.
Today, a kilogramme of sugar retails at BDT 100–110, compared with BDT 95–100 a fortnight ago and as little as BDT 92–95 before the Middle East war began. Traders note that sugar demand typically doubles during Ramadan. But cool weather during this Ramadan kept prices stable. Demand doubles again in summer — a period that now coincides with deeper supply cuts by major refineries, fuel shortages and the global conflict, all of which, they argue, are driving prices abnormally higher.
Traders in Khatunganj say the global turmoil is being capitalised on to lift prices after a prolonged trough. Many had previously bought delivery orders at a loss and now seek to recoup those losses through steeper mark-ups. Trading houses want to recover their investment by driving prices higher before demand softens with the coming fruit season, when sweet fruits such as mango, jackfruit and litchi will arrive.
Several private sugar mills have already cut supply, traders add. The price spike is now being felt across the food market: bread, biscuits and confectionery prices have started to climb. And the recent fuel oil price increase, they say, has tilted the broader food market upward.
“Sugar prices held steady for a long time,” Abdus Salam, president of the Khatunganj Trade and Industries Association, told Bonik Barta. “Now the war has driven up import costs. And the domestic fuel price rise has added extra transport costs. Summer demand has pushed the sugar market temporarily higher.” He expects consumer goods prices to retreat once the Middle East conflict is brought under control.