Sugar may taste sour
Monday, 14 June 2010
Monira Munni
Sugar is likely to taste sour as its price has started to increase in the local market after the government proposed to impose additional duty on imported raw sugar, traders said.
The price of this essential item in the daily menu of public life now hovers at Tk 2,050 for a 50 kg bag at the wholesale market, which was Tk 1,850 two days ago.
The price of sugar at the retail level ranges between Tk 44 and Tk 46 a kg.
Abdul Latif, a sugar trader at the city's Karwan Bazar, told the FE: "Prices of sugar have increased by Tk 1 to Tk 2 per kg in the last two days and it may increase further."
Refiners argued that the minimum gap in the import duty between raw sugar and imported refined sugar should be increased, but instead of doing so the government has narrowed the gap further.
"If the government implements its budget proposal, it will simply destroy the refineries," said a refiner. "We have been incurring losses since last Ramadan as we sold sugar at a lower price than that of the international market."
In the budget for the next fiscal year, finance minister AMA Muhith has proposed to impose duty on raw sugar and refined sugar at the rate of Tk 2,000 and Tk 4,000 per metric ton respectively to ensure higher revenue collection to meet government's developmental needs.
Currently, there is no specific duty on raw sugar, while Tk 3,000 is slapped on refined sugar.
The refiners said the price of sugar may increase in the local market due to the proposed additional duty - a possibility which has already been ruled out by the finance minister.
The specific rate of duty on raw sugar was withdrawn last year in response to the sudden price hike of the sweetener in the world market, AMA Muhith said Friday at a post-budget press conference.
"And there is no possibility of sugar price hike in the local market as internationally the price has come down," the minister said.
Meanwhile, Industries Minister Dilip Barua said that there would be no sugar crisis before Ramadan as the government has a stock of 35,000 tonnes and the state-owned sugar corporation will import 25,000 tonnes more before the month of fasting begins.
According to Bangladesh Sugar Refiners Association (BSRA), the country's six sugar refiners can produce 2.4 million tonnes against annual demand of 1.4 million tonnes.
Sugar is likely to taste sour as its price has started to increase in the local market after the government proposed to impose additional duty on imported raw sugar, traders said.
The price of this essential item in the daily menu of public life now hovers at Tk 2,050 for a 50 kg bag at the wholesale market, which was Tk 1,850 two days ago.
The price of sugar at the retail level ranges between Tk 44 and Tk 46 a kg.
Abdul Latif, a sugar trader at the city's Karwan Bazar, told the FE: "Prices of sugar have increased by Tk 1 to Tk 2 per kg in the last two days and it may increase further."
Refiners argued that the minimum gap in the import duty between raw sugar and imported refined sugar should be increased, but instead of doing so the government has narrowed the gap further.
"If the government implements its budget proposal, it will simply destroy the refineries," said a refiner. "We have been incurring losses since last Ramadan as we sold sugar at a lower price than that of the international market."
In the budget for the next fiscal year, finance minister AMA Muhith has proposed to impose duty on raw sugar and refined sugar at the rate of Tk 2,000 and Tk 4,000 per metric ton respectively to ensure higher revenue collection to meet government's developmental needs.
Currently, there is no specific duty on raw sugar, while Tk 3,000 is slapped on refined sugar.
The refiners said the price of sugar may increase in the local market due to the proposed additional duty - a possibility which has already been ruled out by the finance minister.
The specific rate of duty on raw sugar was withdrawn last year in response to the sudden price hike of the sweetener in the world market, AMA Muhith said Friday at a post-budget press conference.
"And there is no possibility of sugar price hike in the local market as internationally the price has come down," the minister said.
Meanwhile, Industries Minister Dilip Barua said that there would be no sugar crisis before Ramadan as the government has a stock of 35,000 tonnes and the state-owned sugar corporation will import 25,000 tonnes more before the month of fasting begins.
According to Bangladesh Sugar Refiners Association (BSRA), the country's six sugar refiners can produce 2.4 million tonnes against annual demand of 1.4 million tonnes.