Local refiners have sought immediate action to put an end to sugar smuggling from India in a bid to help the domestic industry survive such odds and adversities.
They apprehend that the domestic sugar industry will definitely be in dire straits if such smuggled sweetener continues to enter the local market.
Golam Rahman, secretary general of the Bangladesh Sugar Refiners Association, has recently written to the commerce ministry with a plea to act immediately against the entry of Indian sugar illegally.
Inferior-quality smuggled sugar has been entering the domestic market for three months, according to him.
For this reason, Mr Rahman said, the government has been losing huge revenue.
Sugar is being smuggled through border areas, including Haluaghat, Dobaowara under Mymensingh, Durgapur and Kalmakanda of Netrakona, Kasba of Brahmanbaria and Sylhet.
The sweet substance from India is sold at different upazila and district markets as well.
The refiners complained that law-enforcement agencies and the government authorities concerned have not taken any step against the sale of smuggled sugar.
According to a source, law-enforcers are operating a drive against the smuggling sugar across the country.
The Indian Border Security Force has been seizing sugar while being smuggled into Bangladesh through different international borders, added industry insiders.
Increased demand for Indian sweetener and a frequent hike in the prices of the item in the local market are the reasons behind increased sugar smuggling from India, cited a senior commerce official.
Private refineries have been selling sugar by refining raw sugar imported from the international market, mostly from Brazil.
Now, an applicable tax rate per tonne of crude item is Tk 42,000 and the government collects around Tk 60 billion in tax revenue in fiscal year 2022-23, Mr Rahman mentioned in a letter to the ministry.
Importing raw sugar requires compliance with various government regulations such as LC, custom clearance, VAT and taxes, according to the letter.
To refine and market sugar, they are under constant vigilance of institutions like the Bangladesh Trade and Tariff Commission (BTTC), Directorate of National Consumer Rights Protection, Competition Commission and, above all, commerce ministry.
The annual demand for sugar in Bangladesh is 2.0-2.2 million tonnes. Some 2.2-2.4 million tonnes of raw sugar is imported annually.
Most of the local demand is met by private refiners. More or less 50,000 tonnes of refined sugar is imported annually, according to the BTTC.
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