The Bangladesh Trade and Tariff Commission (BTTC) advised increasing the price of sugar by Tk15 per kilogram amid a volatile commodity market.
Sources said that the state agency recently sent its recommendation to the Commerce Ministry in response to the sugar refiners’ request, citing steep bank loan interest rates, rising dollar prices and surging production costs.
The commission recommended an increase in the maximum retail price (MRP) of packed sugar to Tk140 per kg from its present rate of Tk125, while the MRP of loose sugar was proposed to Tk135 from Tk120 per kg.
It also proposed the price of refined loose and packet sugar at Tk130 per kg and Tk135 per kg respectively at the mill gate.
The prices of refined loose and packaged sugar are to be Tk132 per kilo and Tk137 at the distributor level.
The commission proposed the sugar prices by calculating the US Dollar’s exchange rate at Tk112, taking into consideration six months of bank loan interest and determining the prices based on average import prices inclusive of average LC, average in bond and out-bond from June 01 to June 30, 2023.
On 8 May, the government revised rates of loose and packaged sugar and fixed those at Tk120 per kg and Tk125 per kg respectively as per the commission’s recommendation.
Currently, sugar prices are much higher in the retail market, even though the government fixed the MRP as essential to control spiraling prices.
Sugar retails at Tk130-Tk140 per kg in different retail markets in Dhaka city, according to the daily market prices data of the Trading Corporation of Bangladesh (TCB).
During the June 1-30 period this year, raw (crude) sugar was at $599.86 per tonne in the international market, according to BTTC documents.
The annual demand for sugar in Bangladesh is around 22 million tonnes.
Some 2.2-2.4 million tonnes of raw sugar is imported annually, according to the tariff commission.
On average, 110,000 tonnes of sugar are required per month.
Only 1.5% of the country’s demand is met by locally produced sugar by sugarcane growers, leaving the sector import-dependent.
