Despite the price spiral of sugar, local refiners urged the government to jack up its price by Tk 25 per kilogramme, ahead of the sweetener’s high demand in the upcoming Eid-ul-Azha festival.
The Bangladesh Sugar Refiners Association (BSRA) moved the proposal to fix the maximum retail price (MRP) of packed sugar at Tk 150 per kg, from its present government-fixed price of Tk 125 per kg, and the MRP of loose sugar at Tk 140 a kg from Tk 120 a kg.
The BSRA wanted to make the rates effective from Thursday (June 22), and it requested the Ministry of Commerce (MoC) to take necessary steps in this regard.
When contacted, a senior official of the MoC said, “We have recently received a proposal from the BSRA to increase the prices of sugar. We will review the proposal. But the ministry has not yet got any approval for raising its rates.”
The BSRA gave the new proposal by taking into account the current upward price trend of the key essential in the international market, increased bank loan interest rate, ship-delay penalty, and refiners’ production cost, according to the association.
There was no alternative to implementing the new rates, as sugar prices are increasing in the international market, it added.
However, analysts said most commodity prices are declining globally due to consumption squeeze amid high inflation. Sugar is selling at higher prices locally despite its duty cut.
They added that sugar prices should not be increased, as prices of most commodities are already maintaining a high level in the local market.
The hardship of common consumers would intensify further, if its prices are hiked again. The refiners should make some sacrifice for the sake of common people, they opined.
Meanwhile, raw (crude) sugar price is US$ 640-650 a tonne in the global market. The local refiners are buying raw sugar and marketing in the country after refining it.
The rates of packed and loose sugar were earlier fixed at Tk 125 per kg and Tk 120 per kg respectively following the ministry’s notification. But, the item has never been available in the local market at the government-fixed rates.
According to the Trading Corporation of Bangladesh (TCB) market review, the sweetener is sold at Tk 120-140 a kg at retail level, whereas its actual price is now Tk 140-150 per kg.
Traders concerned said they bought the item at high prices, which forced them to sell it at higher prices.
The Bangladesh Trade and Tariff Commission (BTTC) informed the MoC on June 11 that sugar price in the international market rose to $673.15 on June 8, 2023 from $551.95 on June 8, 2022, rising by 21.96 per cent in one year.
On June 06, the BSRA sent the price hike proposal to the MoC to inform it about the steps taken in this connection. On June 19, the association sent the proposal again for taking steps for saving them from financial loss.
On May 10, the government increased sugar prices to contain its price hike - in a situation, which was created through short supply of the item at retail level, according to market watchers.
The annual demand for sugar in Bangladesh is 2.0-2.2 million tonnes. The country annually imports some 2.2-2.4 million tonnes of raw sugar and some 50,000 tonnes of refined sugar, according to the BTTC. Only 1.5 per cent of the country’s demand is met with locally produced sugar.
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