Intelligence agencies to identify culprits behind sugar price hike
Tuesday, 15 September 2009
Sheikh Shahariar Zaman
The government is going to engage intelligence agencies to find out the unscrupulous businessmen, who are responsible for the unusual price rise of sugar.
"I talked to the intelligence officials today and asked them to find out the culprits," commerce minister Faruk Khan told the FE on Monday.
The government will take stern action against the rogue traders to bring back stability in the market, he said.
Price of sugar has gone up by over 30 per cent to Tk 64 per kg, which was Tk 48 in the past week.
The minister, who came back from US trip Sunday night, feared that the essential item might be smuggled out to the neighbouring countries where it is being sold at a higher price.
"In Kolkata, a kg sugar is selling at Tk 60 and in Myanmar at Tk 62 and in Bangladesh, the mill gate rate is Tk 39 and the retail price should be Tk 42," he said.
It is possible that sugar is being smuggled out due to price advantage, he added.
The minister asserted that there was no reason for the rise in the price of the essential as there is ample supply of sugar.
"Per day consumption of sugar is about 2,500 tonnes, but in the holy month of Ramadan, consumption goes up to over 3,000 tonnes," he said.
Everyday, the four sugar refiners in the country releases about 4,000 tonnes of the essential and the supply should be sufficient to meet the demand, he added.
"The refiners are supplying about 4,000 tonnes of sugar everyday and another refiner, S Alam, will start selling 1,200 tonnes of sugar very soon," it said.
A ship laden with 27,500 tonnes of sugar reached the port on September 12 and over 0.1 million tonnes of raw sugar will reach the Chittagong port this month, and in the first week of next month another 0.115 million tonnes will come.
The minister pointed out that volatility in the international market, profiteering tendency of businessmen and panic buying are three main reasons behind any price hike.
"A month back sugar sold at $370 a tonne, but now it has shot up to $550 per tonne," he said.
The businessmen try to make unusual profit cheating their customers, he added.
The government has taken a number of measures to ensure a fair price of the product, but it continues to rise to Tk 65 level, he said.
"Import duty on raw sugar has been withdrawn and duty on finished sugar has been reduced, interest rate has been fixed at 12 per cent, service charge has been cut down and port and other logistic facilities improved to pass on the benefit to the ultimate consumers," he added.
The refiners are selling sugar at Tk 42 per kg at 20 points in the city and dealers of the Trading Corporation of Bangladesh will start selling sugar, Mr Faruk said.
The minister said the media can play an important role in this regard by making the people aware about true market situation.
"If a popular newspaper publishes a news item that the price would hit Tk 100 per kg, the market will react and price increases automatically," he explained.
The government is going to engage intelligence agencies to find out the unscrupulous businessmen, who are responsible for the unusual price rise of sugar.
"I talked to the intelligence officials today and asked them to find out the culprits," commerce minister Faruk Khan told the FE on Monday.
The government will take stern action against the rogue traders to bring back stability in the market, he said.
Price of sugar has gone up by over 30 per cent to Tk 64 per kg, which was Tk 48 in the past week.
The minister, who came back from US trip Sunday night, feared that the essential item might be smuggled out to the neighbouring countries where it is being sold at a higher price.
"In Kolkata, a kg sugar is selling at Tk 60 and in Myanmar at Tk 62 and in Bangladesh, the mill gate rate is Tk 39 and the retail price should be Tk 42," he said.
It is possible that sugar is being smuggled out due to price advantage, he added.
The minister asserted that there was no reason for the rise in the price of the essential as there is ample supply of sugar.
"Per day consumption of sugar is about 2,500 tonnes, but in the holy month of Ramadan, consumption goes up to over 3,000 tonnes," he said.
Everyday, the four sugar refiners in the country releases about 4,000 tonnes of the essential and the supply should be sufficient to meet the demand, he added.
"The refiners are supplying about 4,000 tonnes of sugar everyday and another refiner, S Alam, will start selling 1,200 tonnes of sugar very soon," it said.
A ship laden with 27,500 tonnes of sugar reached the port on September 12 and over 0.1 million tonnes of raw sugar will reach the Chittagong port this month, and in the first week of next month another 0.115 million tonnes will come.
The minister pointed out that volatility in the international market, profiteering tendency of businessmen and panic buying are three main reasons behind any price hike.
"A month back sugar sold at $370 a tonne, but now it has shot up to $550 per tonne," he said.
The businessmen try to make unusual profit cheating their customers, he added.
The government has taken a number of measures to ensure a fair price of the product, but it continues to rise to Tk 65 level, he said.
"Import duty on raw sugar has been withdrawn and duty on finished sugar has been reduced, interest rate has been fixed at 12 per cent, service charge has been cut down and port and other logistic facilities improved to pass on the benefit to the ultimate consumers," he added.
The refiners are selling sugar at Tk 42 per kg at 20 points in the city and dealers of the Trading Corporation of Bangladesh will start selling sugar, Mr Faruk said.
The minister said the media can play an important role in this regard by making the people aware about true market situation.
"If a popular newspaper publishes a news item that the price would hit Tk 100 per kg, the market will react and price increases automatically," he explained.