Bangladesh looks to supply sugar to GCC

Dubai: Bangladesh sugar refiners are targeting GCC markets as part of a global expansion programme. The country currently enjoys an abundance of refined sugar and intends to export to new markets to improve revenues.

The sugar industry, made up of private sugar refineries and public sugar mills, is currently the second largest agro-processing industry in Bangladesh, and contributes significantly to rural economies, employment generation, industrial growth and the GDP.

"Definitely we are planning to export and expand our sugar market in the GCC," said Gulam Mustafa, General Secretary of the Bangladesh Sugar Refiners Association, in a phone interview with Gulf News.

"The GCC is a premium market that we want to penetrate. We are currently looking at the UAE, Saudi Arabia and Yemen. Right now we are in negotiations with some suppliers in the UAE. Bangladesh offers the lowest sugar price in the Asian market because we have an excess of sugar production yearly," Mustafa added.

Demand

There has been a huge demand for Bangladesh white sugar in Nepal and the eastern states of India due to a recent transit MoU between Bangladesh and India. There is also great potential for exports to Southeast Asia, Far East, Europe and North America as the refiners have duty free access to most of the countries in those regions.

The Bangladesh Sugar Refiners Association facilitates imports of raw material into the country. Brazil has been one of the top sources of raw material. In 2009, Bangladesh imported 1.4 million metric tonnes of raw material and exported more than 10 tonnes of refined sugar.

Mustafa nonetheless noted that the sugar price has hit a 30-year high because of the shortage in production in India and Brazil.

"Last year and this year are the tough times for the sugar industry as prices skyrocketed more than 100 per cent within just a year. In February 2009, the price was 13 cents per pound but in the same month this year, it reached 30 cents per pound," said Mustafa.

To improve costs and revenue margins, the association produces its own electricity using sugar by-products. The surplus power produced by the refiners is even being supplied to the national grid.

The association is also building an ethanol manufacturing plant to produce alternative fuel.

"It will be first ethanol plant in Bangladesh," said Mustafa.