Sugar refiners want another price hike ahead of Eid

Sugar refiners have demanded authorities concerned to further increase the retail sugar price by Tk 20, despite the essential commodity being sold at much higher rates than the government fixed price.

Citing spiralling import costs, the refiners on Monday asked the government to fix packaged sugar price at Tk 150 per kg and loose sugar at Tk140 per kg ahead of the Eid-ul-Azha, when demand for sugar usually spikes.

The Bangladesh Sugar Refiners Association (BSRA) made the call through a letter to Bangladesh Trade and Tariff Commission just over a month after the commerce ministry hiked packaged sugar prices to Tk 125 a kg and loose sugar prices to Tk 120 per kg.

The refiners said they want to sell sugar at the rate to the consumers from next Monday (June 22).

According to retailers in Dhaka, however, loose sugar is already being sold at Tk 135 per kg and packaged sugar at Tk 140-150 per kg.

Refiners claim import costs of raw and refined sugar has risen due to a rise in the sweetener’s international rates and a strong dollar.

Taslim Shahriar, deputy general manager, Meghna Group of Industries (MGI), one of the top sugar refiners in the country, said the expiry of the reduced duty benefit for purchasing raw and refined sugar from abroad has also increased the burden on the import cost. Currently, sugar importers pay duty and tax equivalent to almost Tk 40 per kg, which was earlier Tk 31 per kg, he said.

Businesses were retailing sugar at Tk 120 to Tk 140 a kg in Dhaka on Monday.

Meanwhile, the customs authority withdrew a Tk 3,000 specific duty on the import of a tonne of raw sugar and Tk 6,000 on refined sugar with immediate effect in February of this year. It also cut the regulatory duty to 25 per cent from the earlier 30 per cent. The reduced duty benefit expired on May 30.

Commerce Secretary Tapan Kanti Ghosh said the Sugar Refiners Association has sent a proposal to the Tariff Commission demanding a hike in the price of loose and packaged sugar.

He said, “It is difficult to keep the market stable when the global market is volatile. “The rise in prices of sugar in the international market led the Bangladesh millers to hike prices despite agreeing on the prices fixed by the government last month.”