Bangladesh Sugar Refiners Association re-fixed sugar price at Tk 74-75 per kilogram for the retail market.
The price was settled after a tripartite meeting with Bangladesh Trade and Tariff Commission (BTTC) and the Ministry of Commerce on Thursday.
“Sugar price soared to Tk 80 per kg. We’ve lowered it by Tk 5 per kg. From now on, per kg loose sugar will sell at Tk 74 and packed one at Tk 75,” Additional Secretary (import and internal trade) AHM Shafiquzzaman told the journalists after the meeting.
The new price will come into effect from Friday, he said.
During the last two or three months, the traders were increasing prices of some essential items in the excuse of higher import prices, Shafiquzzaman said.
“Before the hike, the price of sugar was below Tk 70. Now the meeting held at the ministry of commerce set the new price,” he added.
Earlier On September 05, Bangladesh Sugar Refiners Association proposed raising price of loose sugar to Tk 85 per kg and packed sugar to Tk 98 citing global price surge.
However, the local refiners are importing sugar at higher prices maintaining a demand-supply balance.
It is very logical that local price will rise while international price is going up, the association says.
Trading Corporation of Bangladesh (TCB) market research data showed that sugar price rose by about 13 percent in the last month. However, this price is 26 percent higher than the last year.
Bangladesh Sugar and Food Industries Corporation (BSFIC) sources said six state-run sugar mills remained closed this season while the rest of nine mills produced 41,648.60 tonnes sugar in total until March 01 this year.
Besides, BSFIC had a previous stock of 56,030.91 tonnes. Its stock now depleted to nearly 38,000 tonnes after sale and preserving nearly 11,000 tonnes as ration for special forces.
The stock is not at all sufficient to keep market stable, officials say.
Annual demand of sugar in the country is 15-17 lakh tonnes of which BSFIC supplies only 1.5 to 2 lakh tonnes through local production and import.
Due to the closure of six state-owned mills and low imports by the BSFIC, ninety percent of the country’s sugar market is now controlled by private refineries.