Sugar prices in Bangladesh are likely to rise after India decides to limit sugar export, reports The Daily Star.
The country is already facing a price rise of major commodities due to the Russia-Ukraine war and the unfavourable weather conditions and fears that it may face a sugar supply crunch in the coming days.
Bangladesh is one of the major buyers of sugar from India apart from Sri Lanka, Indonesia, Afghanistan, and the United Arab Emirates. According to the Bangladesh Trade and Tariff Commission, the country needs around 18 lakh tonnes of refined sugar annually and it imports 98% of the sugar, especially from Brazil to meet domestic demand.
Sugar mills under the Bangladesh Sugar & Food Industries Corporation (BSFIC) have produced 19,500 tonnes of sugar in the 2021-22 season which is 40% of the total sugar produced during last season.
According to the retailers in the domestic market the sugar is sold at the same price as it was sold one month ago but the suppliers have lowered the supply fearing shortage and this may lead to a price hike in the domestic market in the future.
The global shortage of sugar has triggered the demand, hence Indian government has taken a precautionary step by putting a cap on the export of sugar to 100 lakh metric tonnes (LMT).
