Authors: Mohammad Nazmul Huda
Abstract: Bangladesh’s sugar market is structurally import-dependent. Recent industry reporting places annual sugar demand at approximately 20–22 lakh metric tonnes, while domestic sugar mills produce only around 30–35 thousand tonnes in aggregate. BSFIC’s FY2023–24 production was reported at 46,197 tonnes, illustrating the large gap between national demand and state-sector production. This paper argues that the strategic significance of Bangladesh Sugar and Food Industries Corporation (BSFIC) should not be assessed solely by its share of national production. A separate household-consumer segment—covering tea, coffee, home-prepared sweets, traditional foods and other everyday uses—requires analysis because its purchasing behaviour differs from that of industrial bulk users. The paper develops a conceptual framework in which BSFIC can function as an alternative domestic supply channel and a potential price-disciplining participant. Historical evidence supports this institutional role: BSFIC has repeatedly used open-market and dealer sales, stockholding and Ramadan-oriented distribution to support price stability. BSFIC’s own SDG reporting states that the corporation helps the government keep sugar prices stable. Recent market episodes also demonstrate the vulnerability of retail prices to import costs, refinery disruptions and supply concentration. The paper does not claim that BSFIC currently controls a specified percentage of household consumption. Rather, it proposes that household market presence, consumer preference for naturally processed/local sugar, strategic stocks and accessible retail distribution should be treated as measurable variables in future empirical research. The article concludes with a market-segmentation strategy built around household retail, institutional supply, industrial B2B sales and strategic reserve functions.
DOI: http://doi.org/10.5281/zenodo.23007645
