Sugar prices up again on excuses of int’l market impact

The price of sugar, another essential commodity, has gone up once again in the wholesale kitchen markets of Chattogram city.

In the last three days, the price of sugar increased Tk100 per maund in Khatunganj, the country's largest wholesale market for consumer goods. 

Traders here said importers increased the price of sugar in the domestic market citing slightly higher booking prices for the product in the global market in the last one week.

However, it will take at least two months for the products currently booked to reach the market, sugar wholesalers say.

Currently, a maund (37.32 kilogram) of sugar sells for Tk2,800 in Khatunganj which was Tk2,700 three days ago. With this, the wholesale price of the product shot up Tk100 per maund within three days.

S Alam sugar is selling for Tk2,800, Meghna Group's Fresh brand of sugar is Tk2,780, and Citigroup's Igloo brand is going for Tk2,760.

According to Khatunganj wholesalers, the price of sugar in the local market has been on the rise for the last eight to nine months due to higher booking rates in international markets. Over these past months, the price of sugar has gone up about Tk500 per maund.

Nurul Azam, proprietor of M/s Ajmir Traders, a wholesale sugar trader in Khatunganj, said, "Despite adequate stocks to meet demand, importers control the sugar price at will, as a syndicate."

Privately owned companies are now controlling the sugar market at will as the supply from state-owned companies has declined as compared to the private companies, the wholesaler complained.

Alamgir Parvez, the proprietor of M/s RM Enterprise, a Khatunganj sugar importer said that in the last one week, the price of sugar (per maund) has gone up two dollars in the international market. At present, standard sugar from the international market, after adding import and refining costs of Tk560 per maund, costs Tk2,360 per quintal.

"Sugar was $18 per maund in the international market a week ago. Adding import and refining costs of Tk560 per mound, the price of sugar was Tk2,180. Sugar prices have now gone up $2 per maund. At present, the cost of importing sugar is Tk2,360. With this, the price of sugar in the international market shot up by Tk180 in a week."

But the importers are selling sugar at Tk2,800 per maund, making a profit of Tk440 which is abnormally high, Mahmudul Hasan, the proprietor of M/s Hassan Traders,  complained.

He agreed that the price of sugar rose slightly in the international market, but sugar booked in the international market at a higher price has not reached the domestic market yet, and what is selling now was imported earlier at a lower price.

According to Bangladesh Sugar and Food Industries Corporation (BSFIC) and the Trading Corporation of Bangladesh (TCB), the annual demand for sugar in the country is 15-17 lakh tons. About 7-8 % of the demand for sugar is met by government supply. 15 state-owned companies supply only 1.5 lakh tons and through TCB, the government also imports some sugar.