In the last one week, the price of sugar in the Bangladesh market has increased by 7.55 percent. But to control the price of sugar, the import duty has been reduced to half. However, due to the increase in the price of sugar in the global market, the increase in the price of the US dollar against the rupee and the shortage of supply in the country, the price of sugar in the country has increased, said the stakeholders.
Earlier, the National Board of Revenue (NBR) had halved the import duty on raw and refined sugar on November 2. Although this decision was taken to control the price of sugar in the country’s market, the price of sugar increased instead of decreasing.
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Due to reduction in NBR duty, importers have to pay Tk 1,500 duty for every tonne of raw sugar from the international market. It was Rs 3 thousand before tax deduction. Similarly, the import duty on refined sugar has been reduced from Tk 6,000 to Tk 3,000.
Retailers and wholesalers of the capital said on Saturday that refineries and dealers have increased the price of sugar.
According to Trading Corporation of Bangladesh (TCB) data, sugar was sold at Tk 130 to Tk 135 per kg a week ago. But currently it is selling at 140 to 145 taka.
That is, the price of sugar has increased by 7.55 percent in the last one week.
However, NBR has maintained 15 percent value added tax and 30 percent regulatory duty on import of raw and refined sugar.
Tanveer Hossain, a wholesaler at Karwan Bazar, one of the capital’s largest raw markets, said that sugar was sold at Tk 6,900 per 50 kg bag yesterday, which was Tk 6,400 a week ago.
When the dealers were asked about the reason for the price hike, they said that mainly due to the shortage of US dollar, the price of sugar has gone up. Besides, the increase in the price of sugar in the international market has affected the local market.
During July-September 2022, the price of sugar in the international market was $0.40 per kg. However, in January-September of this year, it increased to 0.54 dollars and in October it increased to 0.57 dollars.
Another wholesaler Naeem Hossain said that my demand for sugar was 20 to 30 bags, but yesterday I received 10 bags of sugar.
Enamul Haque, a retailer in the port city of Chittagong, said that he is selling sugar at Tk 142 to Tk 150 per kg. A week ago it was 130 to 132 taka.
Khatunganj market wholesaler Abdur Razzak sold sugar at Tk 5,000 per maund (37.32 kg), which was Tk 4,700 a week ago.
He said, ‘There is not enough supply of sugar.’
Senior Assistant General Manager of Meghna Group of Industries. Taslim Shahriar said that the price increase in the international market and the high value of the dollar are affecting the sugar market.
The rupee has depreciated by about 30 percent against the dollar since January last year, increasing import costs.
Md. Taslim Shahriar said, “In addition, we have to face difficulties in opening sufficient amount of loans.”
Bangladesh has a demand of 20 to 22 million tons of sugar every year. Of this, local mills produce 30,000 to 35,000 tons. As a result, Bangladesh has to rely on imports to supply the remaining sugar.