Refined sugar prices rise by Tk5 per kg

Bangladesh Sugar Refiners Association has increased the price of loose refined sugar by Tk5 per kg to Tk107 and packaged refined sugar by Tk4 per kg to Tk112.

The new prices will be effective from 1 February, according to a press release published by the Bangladesh Sugar Refiners Association on Thursday (26 January).

Earlier on 17 November 2022, the price of refined sugar was increased by Tk13 per kg to Tk102 for loose sugar and Tk 108 for packaged ones.

The price was increased considering the price hike of unrefined sugar in the global market, dollar price increase, and increase in operational costs of local mills, reads the statement. The press release adds that the decision was taken after consulting the Bangladesh Trade and Tariff Commission and the Ministry of Commerce.

According to the commerce ministry, Bangladesh's annual demand for sugar is 20 lakh tonne, whereas it locally produces only 30,000 tonne and imports the rest 19.7 lakh tonne.

Sugar traders claim, "There is a lack of supply of packaged sugar in the market. Even though loose sugar is available, we are having to buy that at a higher price as well. That is why retailers are having to mark up the price of sugar."

Loose and packaged sugar is being sold in the market at Tk125-130 per kg, that is, the price of sugar is already higher in the local markets than the price fixed by the association.

Md Sahid, owner of Sahid General Store in Segunabagicha told TBS, "The price mentioned on the packet of a sugar brand is Tk107 but we are having to buy it at a higher price. That is why we are selling at Tk125."

He also complained that, "Companies now do not want to sell only packets of sugar. If you want to take sugar from them, they made it compulsory to buy salt or other products of their brand as well."

This shopkeeper, however, removed the price of sugar printed on the packet, so as not to get into any legal trouble.

A tea shop owner in Eskaton Garden, Rana, told TBS, "Tk107 packet of sugar has to be bought for Tk130. Sugar is essential for tea shops, so there is no way but to buy it at a high price."

According to commerce ministry sources, the import of sugar during the July-December period of 2022 decreased by about 2.08 lakh tonnes compared to the same period of 2021.

However, during Ramadan, there is an increased demand for sugar. Usually, the demand for sugar is 1.5 lakh tonnes per month, but during Ramadan, this demand doubles to about 3 lakh tonnes.

On one hand is the preparation of Ramadan supplies, on another is the normal supply pressure. Traders said that there is lacking in both places. Due to which there is a crisis in the supply of sugar.

Traders say the supply crunch is due to the inability to open enough LCs due to the dollar crunch.

Previously, the commerce ministry had said it would warn the Bangladesh Bank that it will be held responsible for any shortage of essentials in the market during the forthcoming Ramadan as the central bank has not yet taken effective measures to solve existing problems, including dollar shortages, and complications in opening LCs for imports.

The ministry will request the central bank to provide dollars from reserves for the import of everyday commodities – including edible oil, sugar, dates, chickpeas, and lentil – to meet their increased demand during Ramadan, Senior Commerce Secretary Tapan Kanti Ghosh told The Business Standard.

Another official of the commerce ministry told TBS that the ministry in its letter to the central bank will mention that many luxury products continue to be imported alongside essential products such as fertilisers and fuel oil. Therefore, it would be very concerning if dollars were not provided to open LCs for the import of essential food products for Ramadan.