Bangladesh Trade and Tariff Commission (BTTC) has recommended to sell 100 per cent package to control price volatility in the country's sugar market and prevent excessive profit of retailer.
BTTC made this recommendation in a report to the Ministry of Commerce recently.
Besides, the organisation under the Ministry of Commerce has recommended for commodity exchange to control the secondary market of daily commodities including wholesale and retail.
The report prepared by the Tariff Commission on the instability of the sugar market has been sent to the Ministry of Commerce.
It highlights various issues including disruption in the sugar supply system. According to the agency, problems caused by disruptions in sugar supply from refineries are driving up the price of sugar in the market.
The price of packaged sugar is written on the wrapper, so sellers cannot easily increase the price.
According to BTC, currently 95 per cent of sugar is sold in the loos sack. The remaining 5 per cent sugar is packaged and released by the companies. Due to the fact that the price is mentioned on the packet of this 5 per cent sugar, if the company wants to increase the price at the retail level, the sellers are facing questions from the buyers.
Speaking to The Business Post, mill owners say if packaging is done now, the production cost of sugar will increase because there are separate costs for packaging. In that, the initiative being taken for the purpose of reducing instability may not be effective.
There will be no opportunity to open the bags of sugar in the retail market and sell it at a higher price. The price of sugar that will be fixed by the government will create an environment to be effective.
Golam Rahman, Secretary General of Bangladesh Sugar Refiners Association and Managing Director of Deshbandhu Sugar Mills, said, in the current market condition, if new packaged sugar is brought, the cost will increase, because there are extra costs for packaging. The initiative is being taken for the purpose of reducing instability may not be effective.
