Uptrend in sugar prices continues

FE Team | Published: February 23, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Prices of sugar has again started going up in the domestic market after remaining stable for nearly two years.
During the last one week, non-brand sugar was selling at Tk38 per kg against Tk35 per kg a week ago and Tk28-Tk29 a month ago.
At the wholesale level, sugar price ranged between Tk 1740-1750 (50 kg) against previous rate at Tk 1640-Tk 1650 (50kg) a week ago.
"We have no alternative but to increase retail price of sugar as we need to procure the same at higher rate from the wholesale market," a trader in the city's Rampura Bazar said.
Prices of raw sugar at the international market marked a sharp rise recently, Fazlur Rahman, managing director of City Group of Industries, said.
Prices of raw sugar ranged between $305-$310 in the international market against $280-$290 a week ago, he said.
Rahman said the price of sugar soared over the past one week also due to the price hike of refined sugar in the international market.
The price of refined sugar in the international market is now around US$ 365 a tonne which was $340 per tonne previously, he said.
"We think vested quarters are active now to increase prices of sugar abnormally on the plea of the hike of the same in the international market," a source said.
It was alleged that a section of dealers and importers increased the prices of sugar by forming cartel in 2006.
As sugar price continued to rise hitting Tk 65-68 per kilogram in April 2006, the then government launched OMS of the same in a bid to stabilise the market.
Price manipulation is comparatively easy as Bangladesh is largely dependent on imported sugar, a source said.
Bangladesh needs around 1.2 million tonnes of sugar each year. Mills under Bangladesh Sugar and Food Industries Corporation (BSFIC) produce around 150,000 tonnes. The rest of the requirement is met by the local refineries and private importers.
Currently, Bangladesh has six sugar refineries and production in one plant has remained suspended.