Sugar is sour now

Sugar price has become all-time high, recording an unbelievable margin of Tk 155 a kilogram in the market. Responding to the demand from the Bangladesd Sugar Refiners Association (BSRA), the government has made upward revisions of the sweetener several times in the past months---the latest at Tk 120-125 for its loose and packet types respectively. But a week ago the BSRA asked the government for another revision up to Tk 150 a kg for retail sale. The government did not agree to the proposal and instead requested the sugar refiners to wait for another hike until the end of the Eid-ul-Adha. The traders did not wait for the government's permission and went for unilateral price increase to the atrocious level. In the face of non-compliance of its directive, the authorities have once again proved its powerlessness and helplessness.
The impression is that the trade syndicates target a few items on higher demand for vicious price manipulation with the approach of the two great festivals of Eid in order to stash away a few billions of taka from the market. By the way the authorities concerned refuse to intervene in the market, it only becomes a party to the aberration of business ethics the traders here have made a new normal. It has happened in case of onion, and is now happening with a wide variety of spices and sugar. Why spices and sugar? It is because of the extensive use of those items during the festival time. Even onion is in great demand around this festival time. There is none to stop the business sharks' clandestine but methodical and calculative activities. Inflation could stay lower if business syndicates did not take undue advantage of the situation where the government stands more or less a silent spectator. The business lobby is so powerful that the government is rather submissive to it rather than the opposite. Globally commodity prices are on the decline now but not in this country.
In case of sugar, its price has increased on global market. But in neighbouring India, USA and large swathes of Europe including warring Ukraine and Russia, sugar price is between US$0.53 to $0.60. In neighbouring India, it is below Rs 60. But elsewhere it is quite high. Had India not put a cap on export of sugar until the second half of 2024, fearing production fall under the influence of EL Nino, Bangladesh would not be in such a position of supply crunch. Brazil also has diverted its sugarcane for production of bio-fuel in the face of energy crisis. Traders here are taking undue advantage of this supply chain disruption.
The refiners advance the pretext of higher refining cost and delay in unloading at the ports. These are flimsy excuses. Had there been a strong national consumer rights protection body, it could collect all the documents relating to import of sugar and easily find out the exact cost. The Directorate of National Consumers' Rights Protection, however, did it once when broiler chicken's price shot up all on a sudden before Eid-ul-Fitr. It showed the profit margin was exaggeratedly higher and the companies had to bring down the price of this cheap meat. The authorities have let down the people in order to serve the interests of businesses. It certainly could do better.