Refiners want sugar prices fixed

ANIS ALAMGIR

Despite slashing down of import tariff on raw and refined sugar, the Bangladesh Sugar Refiners Association has stepped up their demands. In a letter to the Commerce Minister Faruk Khan the Association has said that the Government fix the price of sugar at Tk 50. The Sugar Refiners' Association claims that if this did not happen they would end up running huge losses. Just recently the Government initiated a series of measures to control sugar prices in view of approaching Ramzan. This included withdrawal of import tax on raw sugar and slashing import tax by half for refined sugar - from the existing Tk four thousand to Tk two thousand per MT from July 1, 2010. The Refiners association claims that the sugar prices in the International market are high. "We are buying per tonne crude sugar at the cost of $530 from international market, it is impossible to sell per KG refine sugar under taka 45 even at the mill gate" according to letter written to the Commerce minister by the Association. The letter added, in that case retail price would stand at Tk 48-50 per KG. But The Government's decision itself has been questioned by market watchers. A similar policy measure had been taken last year by the Commerce Minister Faruk Khan whereby sugar prices had been for the whole sale and retail markets. But it failed to arrest the spiraling sugar prices. Even this year sugar prices are rising despite the Government's initiative. Last week sugar was selling at Tk 42 a KG. Now it is selling at the rate of Tk 45 per KG. Market analysts say this could rise further as Ramzan approaches if the Government did not intervene. NBR statistics indicate large scale sugar hoarding. Figures show that in the last fiscal sugar imported in the country till May was more then four times higher than previous fiscal. The country had imported 12.73 lakh MT sugar during 11 months of last fiscal, out of which 11.50 lakh MT sugar were raw and the rest were refined. NBR statistics also says, during previous financial year (2008-2009) it was only 2.70 lakh, raw and refined sugar taken together. No one from the Sugar Refiners Association was available for comment. But the General Secretary of the city's Moulovi Bazar Traders Association Abul Hashem, blames the sugar refiners for artificially keeping the prices high. It is they he alleges who are sitting on stocks of sugar causing price rise. He foresees a further rise in sugar prices with Ramzan approaching unless, the Government, can introduce a strong supply chain" he adds.