Govt to import sugar before Ramadan
Saturday, 21 May 2011
Asaduzzaman Pallab
State-run Sugar and Food Industries Corporation (BSFIC) has started the process of importing sugar to help stablise the price of the essential commodity in the domestic market during the month of Ramadan. The corporation will procure around 200,000 tonnes of sugar from local and international sources, officials said. Of the total amount, 20,000 tonnes will be imported through local tender, 75,000 tonnes through international tender and the rest 100,000 tonnes will be imported under state to state agreement. Last year the corporation imported a total of 25,000 tonnes to rein in the rising prices of sugar in the domestic market. "The corporation has already started the process of importing sugar from various sources. We have invited a number of local and international tenders," an official said. "Although we have not yet imported sugar, we hope to procure before Ramadan," he added. The corporation plans to sell the imported sugar in the local market at a government fixed rate, he said. At present, dealers procure sugar from various BSFIC mills at the rate of Tk 45 per kg. They are allowed to add Tk 2 per KG to sell in the market as profit margin and to cover transport cost But consumers have to spend Tk 55-60 to buy a single KG of sugar due to lack of supply from the government-owned entity. Private owners mainly control the sugar market who have production capacity of around 2.5 million tonnes at present Against the demand of 1.5 million tonnes per year, the BSFIC-controlled sugar mills just produced around 100,000 tonnes of sugar in the last financial year. The corporation fixed the production target around 135,000 tonnes, which will not be sufficient to meet the market demand.
State-run Sugar and Food Industries Corporation (BSFIC) has started the process of importing sugar to help stablise the price of the essential commodity in the domestic market during the month of Ramadan. The corporation will procure around 200,000 tonnes of sugar from local and international sources, officials said. Of the total amount, 20,000 tonnes will be imported through local tender, 75,000 tonnes through international tender and the rest 100,000 tonnes will be imported under state to state agreement. Last year the corporation imported a total of 25,000 tonnes to rein in the rising prices of sugar in the domestic market. "The corporation has already started the process of importing sugar from various sources. We have invited a number of local and international tenders," an official said. "Although we have not yet imported sugar, we hope to procure before Ramadan," he added. The corporation plans to sell the imported sugar in the local market at a government fixed rate, he said. At present, dealers procure sugar from various BSFIC mills at the rate of Tk 45 per kg. They are allowed to add Tk 2 per KG to sell in the market as profit margin and to cover transport cost But consumers have to spend Tk 55-60 to buy a single KG of sugar due to lack of supply from the government-owned entity. Private owners mainly control the sugar market who have production capacity of around 2.5 million tonnes at present Against the demand of 1.5 million tonnes per year, the BSFIC-controlled sugar mills just produced around 100,000 tonnes of sugar in the last financial year. The corporation fixed the production target around 135,000 tonnes, which will not be sufficient to meet the market demand.