Fresh volatility hits sugar market

Amid the apparent tranquility in edible oil market, another essential component sugar has received volatility shock.

The port city’s Chaktai-Khatunganj market has witnessed the sugar price hike of around Tk 70 to Tk 80 per quintal (Maund) this week.

No sooner had the consumer goods market begun to turn normal to some extent with the announcement of VAT withdrawal from the edible oil than a fresh volatility hit the sugar market.

As the country’s sugar demand is met by import and there is no shortage of sugar stock, none can tell why the market is turning unstable.

The wholesaler and commissioning agent Solaiman Badsha, also a former leader of local business association, told The Business Post, “It seems that the crisis in market has changed its size and colour. The volatility of oil has now shifted to sugar.”

The price of sugar in the market has gone up to Tk 2660 to Tk 2670 per maund whereas at the beginning of this week it was Tk 2620.

“We have to buy sugar at the new price from importers and the millers. When we sell to retailers, additional Tk 10 to Tk 15 has to be added to the current purchase price,” said Solaiman.

A Chattogram retailer Mohammad Omar Foisal said when he went to buy sugar from wholesalers, he had to pay Tk 2690 to Tk 2695 per quintal.

Alamgir Parvez, director, RM Enterprise in Khatunganj, one of the largest sugar importers in the country, said they had released sugar at Tk 2660 per quintal in the market which wholesalers collected from them.

The annual demand for the sweet substance is 2 million to 2.2 million metric tonne, according to Mazharul Haque Khan, head of marketing, Department of Sugar and Food Industries Corporation of the government.

He said 1.783 million metric tonne of sugar has been imported till March 15 in the current financial year, so sugar crisis is not supposed to happen.

Traders say the edible oil market has somewhat stabilized since the withdrawal of VAT but the supply has not returned to normal.

Prices have also come down a bit as the government has withdrawn VAT on oil in the wake of criticism from various quarters across the country.

“Although there is no shortage of bulk soybean oil and palm oil, the supply of bottled oil, especially five-litre and three-litre bottles, is low,” observed Solaiman Badshah.

“The ‍shortage occurred on Wednesday and Thursday.”

Mostafa Haider, director of TK Group, one of the leading importers and marketing companies of edible oil in the country, said they supply 60-70 carts of oil per day which is their normal supply.

Regarding the low supply of bottled oil in the market, he noted that many traders may take some precautionary measures as there are various rumors about the market of edible oil.

When the businesses of different tiers are saying that the sugar price is turning to be volatile and oil supply is not enough, Consumer Rights Protection Department, a government agency engaged in monitoring the market, claimed that the market of consumer goods is quite normal.

Deputy Director of the organisation Mohammad Fayez Ullah, also head of Chattogram divisional office of the government agency, said: “Our officers are visiting the market full time in weekdays.”

“We did not see any problem in the market and none informed us of anything abnormal.”