No fall in sugar price ‘soon’

New VAT law may result in further price hike, apprehend importers

Despite the drop in sugar price in global market, there is little chance of the price falling in Bangladesh soon, according to importers and traders.

It will take about one-and-a-half months for the low-priced sugar to reach the country. The price of the essential sweetener may start falling from the middle of June, they said.
However, traders apprehend that instead of decreasing, the sugar price might rise further after enactment of the new law on Value Added Tax (VAT) in the upcoming budget session.
The Food and Agriculture Organization (FAO) of the United Nations, in its Sugar Price Index released on Thursday said the sugar price in global markets registered a 9.1 per cent fall from March to hit a twelve-month low. 
Continued weak global import demand and prospects of larger export supplies from Brazil are among the main factors behind the price decline in April, said the UN agency.
Biswajit Saha, general manager of City Group, one of the largest importers of the country, said the price would be revised after receiving the low-priced sugar. It may take one-and-a-half months, he added.
The present price of sugar is Tk 59 a kg at the mill gate, and it is being sold for Tk 66-67 at retail outlets.
But visiting a retail market at Jatrabari in the capital on Friday, this correspondent found that retailers are selling sugar at Tk 70 a kg.
The sugar price went up by Tk 8-10 per kg in retail market in the past one week, retailers at Karwan Bazar kitchen market told The Independent on Friday.
Replying to question, Saha said they have to pay Tk 18 per kg as duty and other charges. Earlier, it was only Tk 2.
The sugar price might increase further with the implementation of the new VAT law, he added.
According to Saha, six companies, including the City Group, Meghna Group, S Alam and Deshbandhu Group, import sugar.
Abdus Salam, managing director of Mir Group, a Chittagong-based sugar wholesaler, said they have fixed the rate of sugar at Tk 60 for wholesalers and Tk 63 for retailers. The decision was taken at a meeting between businessmen and the deputy commissioner of Chittagong on Thursday.
He said they requested the DC to talk to the owners of the Dhaka sugar mills to fix a common rate of sugar and edible oil across the country for the sake of consumers. About 80 per cent of the sugar mills are in Dhaka and only 20 per cent in Chittagong, he added.
He blamed a section of unscrupulous seasonal businessmen for the increase in prices of essential commodities, including sugar and oil, during occasions like Eid-ul-Fitr and Eid-ul-Azha.
Retailers and wholesalers at different wholesale and kitchen markets in the capital said sugar price is going up as millers have created artificial crisis despite the announcement of the government to go tough against the rise of prices of essential commodities before Ramadan.
Every year before the holy month of Ramadan, sugar mill owners create artificial crisis lowering the supply to make extra profit.

No fall in sugar price soon

New VAT law may result in further price hike, apprehend importers

Despite the drop in sugar price in global market, there is little chance of the price falling in Bangladesh soon, according to importers and traders. It will take about one-and-a-half months for the low-priced sugar to reach the country. The price of the essential sweetener may start falling from the middle of June, they said. However, traders apprehend that instead of decreasing, the sugar price might rise further after enactment of the new law on Value Added Tax (VAT) in the upcoming budget session. The Food and Agriculture Organization (FAO) of the United Nations, in its Sugar Price Index released on Thursday said the sugar price in global markets registered a 9.1 per cent fall from March to hit a twelve-month low. Continued weak global import demand and prospects of larger export supplies from Brazil are among the main factors behind the price decline in April, said the UN agency. Biswajit Saha, general manager of City Group, one of the largest importers of the country, said the price would be revised after receiving the low-priced sugar. It may take one-and-a-half months, he added. The present price of sugar is Tk 59 a kg at the mill gate, and it is being sold for Tk 66-67 at retail outlets. But visiting a retail market at Jatrabari in the capital on Friday, this correspondent found that retailers are selling sugar at Tk 70 a kg. The sugar price went up by Tk 8-10 per kg in retail market in the past one week, retailers at Karwan Bazar kitchen market told The Independent on Friday. Replying to question, Saha said they have to pay Tk 18 per kg as duty and other charges. Earlier, it was only Tk 2. The sugar price might increase further with the implementation of the new VAT law, he added. According to Saha, six companies, including the City Group, Meghna Group, S Alam and Deshbandhu Group, import sugar. Abdus Salam, managing director of Mir Group, a Chittagong-based sugar wholesaler, said they have fixed the rate of sugar at Tk 60 for wholesalers and Tk 63 for retailers. The decision was taken at a meeting between businessmen and the deputy commissioner of Chittagong on Thursday. He said they requested the DC to talk to the owners of the Dhaka sugar mills to fix a common rate of sugar and edible oil across the country for the sake of consumers. About 80 per cent of the sugar mills are in Dhaka and only 20 per cent in Chittagong, he added. He blamed a section of unscrupulous seasonal businessmen for the increase in prices of essential commodities, including sugar and oil, during occasions like Eid-ul-Fitr and Eid-ul-Azha. Retailers and wholesalers at different wholesale and kitchen markets in the capital said sugar price is going up as millers have created artificial crisis despite the announcement of the government to go tough against the rise of prices of essential commodities before Ramadan. Every year before the holy month of Ramadan, sugar mill owners create artificial crisis lowering the supply to make extra profit.