Refiners want 20% hike in retail sugar price

The refiners yesterday urged the government to hike retail prices of packaged sugar by 20 per cent to Tk 150 a kilogramme citing spiral in import costs due to a rise in the sweetener's international rates and higher spending for US dollar.

They want to sell sugar at this rate to the consumers from June 22, just over a week before the Eid-ul-Azha, the second biggest festival of Muslims.

The Bangladesh Sugar Refiners Association (BSRA) made the call through a letter to Bangladesh Trade and Tariff Commission more than one a month after the commerce ministry hiked packaged sugar prices to Tk 125 a kg.

The expiry of the reduced duty benefit for purchasing raw and refined sugar from abroad has also increased the burden on the import cost, said Taslim Shahriar, deputy general manager of Meghna Group of Industries (MGI).

Currently, the importers pay duty and tax equivalent to almost Tk 40 per kg, which was earlier Tk 31 per kg, he said.

Businesses retailed sugar at Tk 120 to Tk 140 a kg in Dhaka yesterday.

On February 26 this year, the customs authority withdrew Tk 3,000 specific duty on the import of a tonne of raw sugar and Tk 6,000 on refined sugar with immediate effect.

It also cut the regulatory duty to 25 per cent from the earlier 30 per cent.

The reduced duty benefit expired on May 30.

Reuters reported a week ago that India, the world's second biggest sugar exporter, is not considering allowing sugar exports until at least the first half of the next season, as the government was worried that the El Nino weather pattern could reduce rainfall and dent production.

The BSRA said the present import cost of raw sugar is $640 to $650. These are released and are marketed after processing.

In March, sugar price was $0.45 per kilogramme in the world market. The rate rose to $0.56 in May, according to the World Bank.