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In anticipation of Eid, the sugar market has witnessed a fresh surge in prices, which were already at a record high, after refiners proposed an upward price adjustment in accordance with global rates.
FE
On Wednesday, sugar rose to Tk 130-145 per kg in retail, up from Tk 118-130 per kg, in contrast to the government-fixed rate of Tk 104-109.
Consumer advocates have criticised the commerce ministry’s lack of market monitoring, citing it as the primary cause of market volatility.
Adding to consumer woes just days before the biggest festival for Muslims, chicken and beef also experienced further price hikes on Wednesday.
According to Juel Rana, a grocer in Dhaka’s West Dhanmondi, the wholesale price of sugar increased by Tk 12 per kg overnight, as distributors demanded Tk 122 per kg from Wednesday morning.
He said that loose sugar is now retailing at Tk 130-135 per kg, while packet sugar is at Tk 140-145 per kg, with only a few stores having branded packets on their shelves.
The Bangladesh Sugar Refiners Association (BSRA) submitted a proposal to the government on April 17, requesting an increase in the maximum retail price (MRP) of packed sugar to Tk 135 per kg from its present government-fixed rate of Tk 109, and an increase in the MRP of loose sugar to Tk 125 from Tk 104 per kg.
Commerce ministry officials confirmed to FE that they have received the proposal from BSRA to increase sugar prices, but they will review the proposal, while a senior official stated that there was no scope for the evaluation before Eid.
According to supply chain expert and economist Prof Golam Hafeez Kennedy, the international market price of sugar was US $490-520 per tonne in the January-March period. It witnessed a significant increase in April and is currently trading at $ 560-$ 570 per tonne.
He noted that the sugar products currently available in the market were brought long ago. He said that the refiners could propose to adjust the price next month after the Eid-ul-Fitr festival.
Prof Golam Hafeez added that the government should reduce the higher import duty to adjust the price rather than raising it further.
Humayun Kabir Bhuiyan, secretary of the Consumers Association of Bangladesh (CAB), criticised the commerce ministry for “totally failing” to control sugar prices, pointing out that despite four consecutive price reviews in the last six months, prices remain much higher in the market.
He urged the Bangladesh Trade and Tariff Commission (BTTC) to regularly publish the international prices of commodities and their probable import costs on its website so that consumers can understand the market trend.
He said, “The BTTC has authentic information from global trading agencies, the NBR, and refiners. They only have to do some arithmetic, nothing else.”
The country has an annual local demand for refined sugar of more than 2.0 million tonnes, of which 98 per cent is imported. The monthly demand for the item is 0.15-0.18 million tonnes, which rises threefold during the month of Ramadan.
Meanwhile, according to city meat shops, the price of beef increased to Tk 760-840 per kg on Wednesday from Tk 750-820 per kg on Tuesday.
Broiler chicken prices also increased, with Pakistani and Sonali varieties now costing Tk 400-420 per kg, up from Tk 370-380 per kg, and regular broiler chicken costing Tk 230-240 per kg, up from Tk 220-230 per kg.
(FE)
