The commerce ministry yesterday asked millers and refiners to reduce sugar price by Tk 5 per kilogramme at the retail level three weeks after the revenue authority reduced import duty for raw and refined sugar in a bid to bring down the prices of the sweetener.

Though the government had fixed the rates of loose and packaged sugar at Tk 107 and Tk 112 respectively on February 1, traders in Dhaka's markets yesterday were charging Tk 115 to Tk 120, according to the Trading Corporation of Bangladesh (TCB).

Sugar imported following the duty cut are yet to hit the markets, said Commerce Minister Tipu Munshi at a press briefing after a meeting of a taskforce on essentials' prices and market situation.

The tariff withdrawal translates to a reduction of Tk 4.5 per kg at retail, he said.

Chairing the meeting at the ministry, Senior Commerce Secretary Tapan Kanti Ghosh acknowledged the TCB rates.

The National Board of Revenue (NBR) through a notification on February 26 reduced a regulatory duty on the import from 30 per cent to 25 per cent.

Moreover, it withdrew a specific duty of Tk 3,000 per tonne on the import of raw sugar and Tk 6,000 on refined sugar with immediate effect.

The reductions, following a commerce ministry proposal to bring down prices from the current record level of Tk 120, will remain in effect until May 30.

Overall import cost of raw and refined sugar is expected to decline by Tk 6,500 and Tk 9,000 per tonne respectively, according to an NBR estimate.

Officials of different ministries, government agencies, departments, importers, millers, refiners, wholesalers and trade body leaders at yesterday's meeting discussed prices, stocks, import scenario and market monitoring issues before upcoming Ramadan.

The talks included the supply situation of some other basic commodities like edible oil, lentil and onion.

Although prices of some essential items had decreased in international markets, the foreign currency exchange rate had gone up alongside gas and electricity prices and transportation costs, said Ghosh.

The state-owned TCB will sell some basic commodities at a reduced price twice to its one crore cardholder families during Ramadan whereas in the rest of the year it usually does it once a month, said Munshi.

Annually the TCB needs Tk 9,800 crore to purchase essential commodities meant for sale to consumers with low incomes at a 50 per cent discount, he said.

The minister also said he would sit with the fisheries and livestock minister soon to consult on bringing down soaring poultry prices.

As in every other year, the minister and senior secretary assured that prices of basic commodities would not go up and there would not be any crisis in the markets as there were substantial supplies and stocks.