In the fiscal year 2024-25, Bangladesh saw a significant increase in the amount of refined sugar brought in through Chattogram Port, with imports almost doubling from the prior year. Official figures reveal a 96% jump in refined sugar imports, going from 136,980 tonnes in FY24 to 268,380 tonnes in FY25. This growth was largely triggered by the government’s decision to reduce import duties on refined sugar, lowering the rate from Tk 6,000 to Tk 4,000 per ton.On the other hand, the tax on raw sugar stayed the same at Tk 3,000 for each ton. As a result of this policy shift, the total value of refined sugar imports rose sharply, going from Tk 1,114 crore in FY24 to Tk 2,203 crore in FY25—an impressive 98% jump. Customs revenue from refined sugar also climbed significantly, rising 58% from Tk 587 crore to Tk 930 crore during the same period. Industry insiders say that major industrial users, such as food and beverage producers, pharmaceutical firms, and dairy manufacturers, played a key role in driving this trend. These companies increasingly opted to import refined sugar directly rather than sourcing raw sugar domestically. The cost benefits, coupled with VAT exemptions on raw material imports for manufacturers, made importing refined sugar more attractive. This shift has placed significant pressure on local sugar refiners, including prominent groups like City Group, Meghna Group, S Alam, Deshbandhu, and Bashundhara. Traditionally, these companies import raw sugar from countries such as Brazil, India, and Argentina to refine locally. However, reports indicate that raw sugar imports by these refiners have fallen by about 20% as the market adjusts to the changing preference for directly imported refined sugar. City Group Director Biswajit Saha explained that manufacturers enjoy additional cost savings through VAT exemptions on raw materials, giving them a competitive edge over domestic refiners. Customs officials confirmed that these benefits apply to several industrial sectors, including beverage and pharmaceutical companies. Even though raw sugar imports have fallen, the total amount of sugar imported via Chattogram Port has increased significantly. In FY25, over 1.217 million tonnes of raw and refined sugar entered the country via the port, valued at around Tk 8,000 crore. This marks a 36% increase in volume compared to 781,000 tonnes worth Tk 5,100 crore in FY24. While the reduced duty has helped consumers and increased government revenue, it raises concerns about the long-term sustainability of the local sugar refining industry. Experts suggest that policymakers may need to revisit import duty structures or implement support measures to protect domestic refiners and ensure balanced growth in the sector.
