Edible oil and sugar demand data inaccurate: Traders 

Infographic: TBS

Edible oil and sugar producers of the country have suggested a proper market analysis to determine correct demand data saying the current assessment for the two kitchen essentials are inaccurate.

Currently the monthly demand of both edible and sugar is estimated to be 1.5lakh tonnes, which doubles in the month of Ramadan while the traders say in reality the demands are much higher.    

At a meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Sunday, they also assured that the supply of sugar and edible oil is sufficient to meet the demand in the ensuing month of Ramadan.

Producers of other essential commodities, wholesalers and retailers attended the meeting held to assess the prices, demands and supply of daily necessities ahead of the Ramadan.   

Taslim Shahriar, senior assistant general manager of Meghna Group of Industries, said supply of sugar has seen no problem in the last four-five years.

"Now, the only problem is gas shortage, which is affecting production to meet the daily demand of 5,000-6,000 tonnes. As a result, the price of sugar has risen to the highest level in the last eight years," he said.

In this situation, he suggested that duties should be re-structured as importing raw sugar costs Tk65-70 per kg.

He also stressed that the sugar demand data analysis is very important.

Golam Mawla, president of Bangladesh Wholesale Edible Oil Traders Association, weighed in on the need for accurate data and said, "For the past 15-20 years, I have been hearing that the demand of oil in Ramadan is 3 lakh tonnes. All these years, the number of consumers have increased and so has the demand. So, it is necessary to assess the exact demand."

About the supply of edible oil, City Group Adviser Amitabh Chakraborty said, "We are trying our best to ensure that the supply of goods is not hindered in Ramadan amid the dollar crisis-induced LC opening restrictions."

Bangladesh Oil Mill Association President Biswajit Saha said, "We have handed to the government a list of items that need to be imported. The problem is the LC settlements are stuck. Ships are docked at the port with imported goods but the consignments cannot be released."

He called on the government to look into the matter.   

The FBCCI President Md Jasim Uddin asked the traders to remain aware so that no one can destabilize the market during Ramadan by creating an artificial crisis. Receipts (invoices) should be given for selling products at retail, wholesale market and warehouse levels to keep the price of products stable.

The apex trade body chief told businessmen that in a meeting with the central bank governor on 20 December, the FBCCI placed the demand of facilitating LC opening for the import of daily commodities during Ramadan.

He also said that a 46-member market monitoring committee is working on behalf of FBCCI to keep the market stable during Ramadan and check whether goods are sold at the prices, set by the government.

FBCCI Senior Vice-President Mostafa Azad Chowdhury Babu in his welcome speech urged the businessmen to come out of the culture of increasing prices of goods during major occasions.

Director General of the Directorate of National Consumer Rights Protection HM Safikuzzaman said, "It is necessary to keep sales receipts to stop abnormal price hikes of daily necessities."

Trading Corporation of Bangladesh (TCB) Chairman Brigadier General Md Ariful Hasan said, "If we have honest intentions, the market will not be destabilised. If it becomes unstable TCB has to enter the field and we do not want to enter the market."

Set wholesale and retail prices: Traders

Haji Abul Hashem, vice-president of Bangladesh Sugar Traders' Association, demanded that prices should be determined for wholesale and retail sale of sugar.

He added that the supply of sugar should increase to keep the market stable.

Traders said purchase from the mills with no invoices creates the scope for price manipulation and by the time the products reach consumers, the prices go up a lot.

Traders want permission to import refined sugar

Although some 18 lakh tonne sugar is produced in the country's refineries, traders have sought permission to import refined sugar from neighbouring countries considering the high demand of sugar during Ramadan.

Bashir Uddin, president of Moulvibazar Traders Association, said, "Sugar is sold at Tk45 per kg in India. Therefore, if the import of refined sugar is allowed on an urgent basis, it is possible to reduce the price of sugar by Tk70-80 before Ramadan. And if the duty on sugar import is reduced, the price will also come down."

Traders pointed out that currently there is about 61% duty in total on sugar import after 10% duty was recently reduced.

A further reduction in the duty will reduce the price and increase the supply of sugar, they said.

FBCCI President Jasim Uddin said, "61% duty on sugar is unacceptable. It should be reduced."

He assured that he will take the matter to higher quarters of the government.

Sirajul Islam of Bangladesh Fresh Fruits Importers Association said, although the delay in LC opening caused a setback in importing dates, they are expecting no shortage during the Ramadan.

"However, the price may go up slightly due to high import cost," he said.

Haji Md Majed, vice president of Shyambazar Agricultural Products Traders Association, said they expect the supply of onion, garlic, pulse and ginger to remain smooth.

CAB General Secretary Kazi Abdul Hannan demanded that a flexible tax for daily products should be introduced in the upcoming budget.

"War situations will cause prices to rise. When there is a single supply chain for a product, the supply of that product to the market will be affected. Therefore, creating multi-channel should be focused," he said.

Pointing out that 80% sugar is used commercially and 20% by general consumers, he said the two segments should be separated.

FBCCI Vice President Md Amin Helali, Habib Ullah Don, Director Md Anwar Sadat Sarkar, Md Rezaul Karim Reznu, CIP, and President of Bangladesh Shop Owners Association Md Helal Uddin were present in the meeting among others.