Sugar price reduction by govt doesn't benefit consumers

Sugar

Jehangir Hussain

Though the government on April 6, reduced sugar price by Tk 3 per kg, its price has not decreased in the market.

Though loose sugar should cost Tk 104 and packaged sugar --Tk 109 per kg, consumers have to pay Tk 115 for loose sugar and Tk 120 for packaged sugar, as before.

Commerce Minister Tipu Munshi recently said, "We  noticed a slight upward movement of sugar price. Sugar price should be reduced by Tk 5 per kg.  But  sugar price has been raised again. During Ramadan,  demand for sugar increased, that’s why sugar price has increased."

“Increased demand is used by companies to make extra profit. Traders blamed each other for this. The mill owners claim that they are selling sugar at the mill gate at the price set by the government, but  wholesalers and retailers are selling it at higher prices.

“Sellers say that the price fixed by the government is being charged in the invoice by the millers, but they   charge extra price, saying they bought at a higher price.”

Golam Mawla, a wholesaler and former General Secretary of Moulvibazar Traders' Association, said that sugar price at mill gates has not decreased after the reduction of VAT, on the contrary, it has increased. The government is selling it at fixed price but charging extra price in the invoice.”

He said, "We complained to different quarters of the government. But there was no remedy. A few sugar mill syndicates are responsible for the price hike."

According to the Commerce Ministry, annual demand of sugar in the country is between 18 and  20 lakh tonnes. And only 30-35 thousand tonnes are produced in the country. During Ramadan demand of sugar increases by 30,000 to 35,000 tonnes. And , most of the demand is met from imports.

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