The Trading Corporation of Bangladesh (TCB) today walked back its decision to raise sugar prices by Tk 30 per kg to Tk 100 per kg.

TCB this morning was selling per kg of sugar at Tk 70.

State Minister for Commerce Ahsanul Islam Titu today said that recent increased price of sugar was due to "our own error", leading to an increase from Tk 70 to Tk 100 per kg.

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Sugar prices edge up as traders tighten supply

"This was our own mistake. I apologise for this. Going forward, we will be more cautious to ensure small issues do not escalate into major ones," he said while inaugurating the TCB's commodity sales programme in capital's Tejgaon area.

In response to questions from journalists, the state minister stated that, despite a recent fire at one of the mills in Chattogram, there is no chance of a sugar crisis.

"A few days ago, there was a fire at a sugar mill, but you can rest assured that the existing sugar stock is sufficient," he said.

TCB, a wing of the commerce ministry, yesterday increased sales price of sugar by 43 percent or Tk 30 per kilogramme (kg) in a bid to contain subsidy bills.

It said the state-run agency would sell the sweetener at Tk 100 per kg from today, along with selling soybean oil, lentil, dates and rice at subsidised rates to one crore TCB cardholder families.

Humayun Kabir, spokesperson of the TCB, told The Daily Star yesterday that the amount of subsidies for sugar has increased due to a rise in purchasing prices resulting from a spiral in its rates in global markets and higher import cost for the devaluation of the taka.

"This is why, we have taken the decision of increasing sales price of sugar," he added.

Sugar is sold at Tk 140-Tk 150 per kg at retail markets in Dhaka at present.