Sugar prices hit record high

Sugar prices have started rising afresh to hit a record high of as much as Tk 125 per kilogramme at retail in the two main cities of Bangladesh, namely Dhaka and Chattogram, further straining the wallets of consumers as inflation continues to bite.

Market prices data compiled by the state-owned Trading Corporation of Bangladesh (TCB) showed sugar prices edged-up in Dhaka's markets yesterday as the sweetener became scarce in many stores for a dip in supply from refiners.

These correspondents visited 25 retail stores in Dhaka and Chattogram and found no sugar in 10 shops.

And supply of the sweetener, especially packaged, was lower than the regular requirements of stores, retailers said.

As such, prices of loose sugar shot up by Tk 10 to Tk 15 per kilogramme (kg) in these two cities over the past week.

TCB data showed that prices of sugar have risen 22 per cent to Tk 110-Tk 115 per kg from Tk 90-Tk 95 a month ago.

The present prices of sugar were 45 per cent higher year-on-year.

Prices of the sweetening agent have been increasing over the last three weeks as sugar refining was severely affected by the squeeze in gas supply.

Refiners said refining slumped by up to 50 per cent. At the same time, they are also facing problems in opening letters of credit to import unrefined sugar due to the banks' lack of cooperation on account of the dollar shortage.

Retailers and wholesalers in several areas of Dhaka and Chattogram said the supply of loose sugar is declining.

"For the last one week, we have not been getting sugar from dealers as per the demand. So, prices have gone up," said Anamul Haque, owner of Ahmed Store in the Hamzarbag area of Chattogram city.

"For the last two days, I have had no sugar to sell," he added.

Abu Zafar, a retailer in the Pallabi Extension area of Mirpur, said they are selling loose sugar at Tk 120 per kg and packaged sugar at Tk 125 per kg.

Dealers have been delivering only 20 per cent of the sugar we need to serve our customers for the last two weeks, he added.

Monwar Hossain, owner of Yasin General Store in Dhaka's Karwan Bazar, one of the biggest kitchen markets in the country, said they have not been getting sugar from dealers as per the demand.

Traders of the Khatunganj-Chaktai wholesale market in Chattogram said sugar prices have gone up by Tk 300-Tk 350 per maund (roughly 37 kgs) in a one-week span.

Traders at the market said the sweetener was sold at Tk 4,000 to Tk 4,100 per maund, up from Tk 3,700 to Tk 3,750 for the same amount a week ago.

SM Mujibur Rahman, head of accounts of Meghna Group of Industries, said they face complexities in opening letters of credit to import raw sugar owing to the dollar crisis.

Besides, they can refine just half of their capacity due to reduction in gas supply to factories, he added.

However, a report by the Directorate of National Consumer Rights Protection said the country had a stock of more than 375,000 tonnes of sugar as of October 23 this year, and there was no shortage of raw sugar.