DO system for sugar, edible oil scrapped

FE Team | Published: October 15, 2010 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Sugar and edible oil manufacturers will not issue delivery order (DO) any more to the traders after one month to maintain price stability in the market.
The government and businessmen Thursday at a meeting decided to scrap the DO system for the essential items to avoid volatility in the market.
Commerce minister Faruk Khan at a press briefing said the DO system is not working properly in Bangladesh as some unscrupulous traders have distorted the mechanism.
A six-member committee has been formed to prepare a report within 15 days and the government will announce an alternative to the DO system within next 15 days, he said.
Sugar is selling at Tk 50 to Tk 54 per kg while edible oil is selling at Tk 88 to Tk 92 per kg in the market on Thursday, according to the Trading Corporation of Bangladesh.
"The producers can opt for dealership or distributorship whatever is profitable for them," Mr Faruk said adding, "The DO system will be scrapped for other essential items gradually."
The main objective of the government is to stabilise price and distribute goods even at the remote places at an affordable rate, the minister said.
The minister warned that everybody should be careful about an 'evil force', which always works to scuttle the good initiative of the government.
"If the government and businessmen work together it is possible to contain the price spiral," he said.
FBCCI president AK Azad said there is widespread allegation against businessmen because of handful of unscrupulous traders.
The apex business body chief said the newly formed committee will monitor the market and recommend reasonable prices for the essential commodities and the government will fix the price.
Fazlur Rahman of City Group said there should be some flexibility so that the producers are allowed to export their products.
On October 13, edible oil sold at $1035 per tonne while palm oil at $939 per tonne and sugar per pound sold at $27.15 in the international market.