Subsidised sugar sales for ten million families during the upcoming Ramadan, the holy month of fasting for Muslims, are in doubt after the commerce ministry failed to procure the required quantity from the international market.
The ministry recently requested "immediate purchase" of 20 million kilograms of sugar from the government-run Sugar and Food Industries Corporation (BSFIC), a senior commerce ministry official said.
However, the Sugar and Food Industries Corporation will be unable to fulfil such a large request, according to another official at the corporation.
The sugar and food corporation, the official said, produced only 21,000 tonnes of sugar last year, which has already been allocated for government rations of various agencies.
The commerce official said that global volatility caused by the ongoing Russia-Ukraine war hampered the Trading Corporation of Bangladesh (TCB)'s efforts to purchase its targeted 87 million kilograms of sugar despite repeated tenders.
TCB, under the government's programme to ease inflationary pressures, is set to distribute one kilogram of sugar, two litres of soybean oil and two kilograms of lentils at subsidised rates to ten million underprivileged families across the country.
The corporation currently requires at least 20 million kilograms for open sale before Ramadan, which begins in the second week of March.
Following TCB's failed attempts to procure sugar internationally, the official said that tenders were issued to attract local private-sector participation. However, the rates proposed by the local suppliers were unreasonably higher, prompting TCB to turn to sugar and food corporation.
In this context, the commerce ministry has written to the industry ministry, requesting 10 million kilograms of sugar by January 29 and another 10 million kilograms by February 29 to fulfil the subsidised sale programme for ten million families, said the commerce official.
Contacted, Joint Secretary of the Industries Ministry Md Shafiqul Islam confirmed receiving the letter and initiating the official process.
Meanwhile, Chowdhury Ruhul Ameen Kaiser, secretary of the Sugar and Food Industries Corporation, said they are currently unable to supply sugar to TCB.
He said all 21.3 million kilograms of sugar produced by local mills last year were distributed for government rations.
Mr Kaiser admitted that while sugarcane crushing has begun at local mills this year, it won't yield enough to fulfil TCB's request. "We targeted for 45 million kilograms of sugar this year, but are now expecting 33 to 35 million."
Meanwhile, TCB records show a 30 per cent price surge of sugar within a year, with the sweetener now costing Tk 145-160 per kilogram in grocery stores.
Seven major refiners handle over 99 per cent of the 2.2 million tonnes of domestic sugar demand through import, refining and marketing.
According to the commerce ministry, the demand for sugar quadruples during Ramadan.
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