The government on Wednesday gave its permission to sugar refiners, who will now be able to raise prices of the commodity by Tk16 per kilogram in retail, with immediate effect.
This means that the price of unpacked sugar would rise from Tk104 per kg to Tk120, according to a Commerce Ministry circular.
The price of packaged refined sugar has been hiked to Tk125 per kg from Tk109.
Sugar is being traded at a multi-year high in the global market amid tight supply and production concerns in key producing countries, including India, one of the largest producers of the sweetener in the world.
Refiners, which meet almost the entire domestic demand, last month wanted to hike the prices of sugar, citing soaring import costs resulting from spiraling prices.
Following the proposal, the Bangladesh Trade and Tariff Commission analyzed the prices in the international market and the import costs after the sharp depreciation of the Taka against the US dollar.
Based on the analysis, it suggested an increase in the prices of sugar by Tk16 per kg.
The government fixed the new prices at a time when the sweetener is selling at a record price in the local market and inflation remains at an elevated level.
Retailers sold sugar on the day at Tk130-Tk 140 per kg, according to price data compiled by the Trading Corporation of Bangladesh.