Bangladesh's sugar output for 2012/13 will likely rise about 40 percent to 100,000 tonnes, thanks to a good crop of sugar cane, while imports of raw sugar will also increase after overseas sales of refined sugar were allowed. "This year, we received more sugar cane from farmers as production was good this season," said Harun Mia, purchasing officer of Bangladesh Sugar & Food Industries Corp.
That production coupled with stocks helped the state agency, which has until now imported sugar to build up reserves, last month issue the first ever international tender to export refined sugar from locally produced cane to the European Union under an EU preferential quota. In December, the government gave the agency permission to explore the quota opportunity to cover losses because production costs are often above the selling price. The official ruled out another export tender in the near term as the state agency needs to maintain enough reserves to be able to rein in domestic prices, which have remained stable over the past year.
Bangladesh depends on imported sugar to meet annual demaand of 1.4-1.5 million tonnes Late last year, the government allowed exports of sugar by private refiners who had been calling for overseas sales as they have more than 3 million tonnes refining capacity.
Since December, Bangladesh has exported around 30,000 tonnes of sugar to east African and Middle Eastern countries and another 50,000 tonnes will be shipped soon, said Golam Mostafa, chairman of Deshbandhu group, a leading refiner and trader. Private refiners mostly import raw sugar from Brazil, India and Thailand.