Staff Reporter :
The sugar industry in Bangladesh is grappling with significant challenges, exacerbated by the influx of illegally imported sweeteners, according to industry stakeholders.
Reports from the Bangladesh Sugar Refiners Association (BSRA) indicate that these illicit imports not only create uneven competition but also result in substantial revenue losses for the government.
Recent data released by the National Board of Revenue (NBR) reveals a decline in raw sugar imports from 18.48 lakh metric tonnes to 13.86 lakh metric tonnes between fiscal years 2022–23 and 2023–24, representing a decrease of 4.62 lakh metric tonnes within a year.
This trend underscores the mounting impact of illegal sugar imports on the domestic market.
Two decades ago, Bangladesh’s sugar sector was dominated by 15 state-run mills; today, it is predominantly controlled by just five private entities.
Among these, the Meghna Group of Industries (MGI) and City Group collectively accounted for approximately 70 percent of the 17 lakh metric tonnes of raw sugar imported in 2023.
MGI alone imported 40.5 percent, while City Group imported 28.5 percent, according to data from the Chattogram Customs House. S. Alam Group emerged as the third-largest importer, fulfilling around one-fifth of the country’s sugar demand last year.
Industry experts attribute the surge in illegal sugar imports to price differentials between Bangladesh and neighbouring India, where sugar is significantly cheaper.
They emphasised the urgency of curbing this illegal trade to safeguard local sugar producers and maintain market integrity.
Local sources report that sugar is currently priced at Tk 140 per kg in Bangladesh, whereas in India, prices range between Tk 70 and Tk 77 per kg. This substantial price gap incentivizes the illicit entry of Indian sugar into Bangladesh, undercutting local producers and affecting market stability.
Although the law-forcing agencies are conducting drives to prevent smuggling on a regular basis, they are able to take action against only one percent of the illegal smugglers, the businesses added.
As a result, the government is losing revenue, and the sufferings of domestic companies have increased, they said.
Delwar Hossain, the former chairman of Bangladesh Sugar and Food Industries Corporation, told The New Nation, “The issue is very important. This should be brought to the notice of the Prime Minister.”
Mohiuddin Monem, Additional Managing Director of Abdul Monem Limited, said, “The raw sugar import declined by at least three to four lakh metric tonnes in the last five months (January to May), and the government is losing revenue for the illegal imports.
Due to the illegal import, uneven competition has been created in the local market, and the country is losing a huge amount of revenue.”
According to the data of the Bangladesh Sugar Refiners Association, Bangladesh has 30 districts bordering India, and sugar is coming to the country through a large part of this border.
Sugar smuggling is increasing through the Sylhet division, Feni, Kishoreganj, Brahmanbaria, Satkhira, and Benapole borders.
The daily demand for sugar in the country is more or less 6 thousand metric tonnes. Now the minimum 2 to maximum 3 thousand metric tonnes are supplied from the factories.
According to this, at least 2000 metric tonnes of sugar are entering the country’s market illegally every day by evading duty.