Sugar price going up
Friday, 13 May 2011
Monira Munni
Sugar is likely to taste sour as its price has started to increase in the local market ahead of the holy month of Ramadan. Traders attributed the price hike to plunge in supply from the millers. The price of this essential item was Tk 57.07 per kg at the wholesale market while the retail price ranged from Tk 62-64 Thursday. Last week retailers were selling sugar at Tk 56-58 per kg. According to the state-run Trading Corporation of Bangladesh (TCB), sugar prices have shot up by about 13 per cent in a month. Sugar price increased 44 per cent in a year which was selling at Tk 41-43 per kg last year, TCB data showed. TCB prepared the report based on its survey of the city's Karwan Bazar, New Market, Hatirpool, Moulavi Bazar, Sutrapur, Fakirapool, Mirpur, Mohammadpur, Shahjahanpur, Malibagh, Jatrabari, Shantinagar, Kochukhet and Mohakhali markets. Gholam Mowla, president of Bangladesh Wholesale Merchants' Association said the recent price hike of sugar is the result of a shortage in supply against the demand. "One or two refiners stopped their production due to servicing of machineries while the others are not supplying the product to the traders as they are selling sugar to the beverage companies at a higher rate," he told the FE. Though there is no shortage and price hike in international market, sugar prices were up in the local market due to the artificial shortage in supply, Mr Mowla who is also general secretary of Moulavi Bazar Traders' Association said hoping the price may come down when all the refiners will start production again. Abdul Latif, a sugar trader at the city's Karwan Bazar, said: "Prices of sugar have increased by Tk 2 to Tk 3 per kg in the last two days and it may increase further." It has become very usual in the country especially ahead of Ramadan, prices of some essential items like sugar, edible oil start increasing, he said, adding "Millers, wholesalers, importers take the advantage of the growing demand during Ramadan." Meanwhile, Ministry of Industries sources said there would be no crisis of sugar before Ramadan as the government has sufficient stock and the state-owned sugar corporation will buy 0.15 million tonnes of sugar from both local and international markets before the month of fasting to keep the market stable. The country's annual demand of sugar is 1.4 million tonnes. The state-owned sugar mills produce about 0.12 million tonnes while the rest of the demand is met by private sugar refiners and import by the traders.
Sugar is likely to taste sour as its price has started to increase in the local market ahead of the holy month of Ramadan. Traders attributed the price hike to plunge in supply from the millers. The price of this essential item was Tk 57.07 per kg at the wholesale market while the retail price ranged from Tk 62-64 Thursday. Last week retailers were selling sugar at Tk 56-58 per kg. According to the state-run Trading Corporation of Bangladesh (TCB), sugar prices have shot up by about 13 per cent in a month. Sugar price increased 44 per cent in a year which was selling at Tk 41-43 per kg last year, TCB data showed. TCB prepared the report based on its survey of the city's Karwan Bazar, New Market, Hatirpool, Moulavi Bazar, Sutrapur, Fakirapool, Mirpur, Mohammadpur, Shahjahanpur, Malibagh, Jatrabari, Shantinagar, Kochukhet and Mohakhali markets. Gholam Mowla, president of Bangladesh Wholesale Merchants' Association said the recent price hike of sugar is the result of a shortage in supply against the demand. "One or two refiners stopped their production due to servicing of machineries while the others are not supplying the product to the traders as they are selling sugar to the beverage companies at a higher rate," he told the FE. Though there is no shortage and price hike in international market, sugar prices were up in the local market due to the artificial shortage in supply, Mr Mowla who is also general secretary of Moulavi Bazar Traders' Association said hoping the price may come down when all the refiners will start production again. Abdul Latif, a sugar trader at the city's Karwan Bazar, said: "Prices of sugar have increased by Tk 2 to Tk 3 per kg in the last two days and it may increase further." It has become very usual in the country especially ahead of Ramadan, prices of some essential items like sugar, edible oil start increasing, he said, adding "Millers, wholesalers, importers take the advantage of the growing demand during Ramadan." Meanwhile, Ministry of Industries sources said there would be no crisis of sugar before Ramadan as the government has sufficient stock and the state-owned sugar corporation will buy 0.15 million tonnes of sugar from both local and international markets before the month of fasting to keep the market stable. The country's annual demand of sugar is 1.4 million tonnes. The state-owned sugar mills produce about 0.12 million tonnes while the rest of the demand is met by private sugar refiners and import by the traders.