State minister assures that existing sugar stock is sufficient despite sugar mill fire
Sugar prices have gone up at both the wholesale and retail levels amid hoarding by traders on speculation of reduced supply after the fire incident at S Alam Refinery, one of the largest raw sugar importers and refiners in Bangladesh.
State-run sugar mills have started crushing locally-grown sugarcane, aiming to produce 33,000 tonnes of sugar in the current fiscal year of 2023-24, said a top official.
The import tariff on raw and refined sugar was halved by the National Board of Revenue (NBR) yesterday in an attempt to contain prices in the domestic market.
Loose sugar will be Tk 120 a kg, packaged sugar Tk 125
Sugar prices have reached a record high internationally, which has had a ripple effect on Bangladesh’s wholesale markets, including those in Dhaka and Chattogram.
Sugar prices edged up in the wholesale market of Bangladesh within days after refiners declared that they would sell the sweetener at higher prices from the first day of February.
The government must implement economic policies that deal with the ongoing crisis
With sugar prices making new records almost every day for a supply crunch at home and abroad, pushing up the cost of making sweetener-based foods, state-run Bangladesh Sugar and Food Industries Corporation (BSFIC) can’t increase the supply to provide some relief to consumers.
The sudden rise in the price of sugar, a key ingredient for popular items such as biscuits, juices, sweets and candies, has pushed up the cost of production, putting manufacturers in a tight spot.
The Directorate of National Consumers Right Protection has identified seven reasons behind the price hike and shortage of sugar, including gas crisis, not mentioning price in sales invoices and complications in opening letters of credit.
Sugar has become dearer with prices going up by Tk 15 a kg at retail markets as millers cut supplies blaming insufficient gas flow at refineries.
India plans to restrict sugar exports for the first time in six years to prevent a surge in domestic prices and could cap this season's exports at 8 million tonnes, government and industry sources told Reuters.
The prices of rice, edible oil, beef, sugar, egg and onion have risen more in Bangladesh than that of the international markets, affecting the poor people who are already suffering from erosion of purchasing capacity for pandemic caused income losses, said the Centre for Policy Dialogue (CPD) today.
Taking advantage of increased demand for sugar during Ramadan, many of the traders are making extra profits from the sweetener -- a practice that prompted strong warnings from Commerce Minister Tofail Ahmed.
