Now comes sugar price shock
Consumers are already bearing the brunt of the high prices of edible oil, wheat and rice for the Russia-Ukraine war and unfavourable weather conditions on the domestic front.
Adding salt to injury, India's decision to limit sugar export has started to fuel prices of the sweetener in Bangladesh due to concerns over a supply crunch in the coming days.
The neighbouring country imposed a cap, saying it would allow export of just 1 crore tonnes of sugar with effect from June 1 in order to ensure availability and price stability in its own domestic market.
The second biggest producer of sugar after Brazil exported 70 lakh tonnes of sugar in fiscal year 2020-21.
Bangladesh was one of the buyers along with Sri Lanka, Indonesia, Afghanistan and United Arab Emirates, according to reports our correspondent from New Delhi.
Bangladesh is heavily dependent on the import of sugar.
The country annually requires nearly 18 lakh tonnes of refined sugar according to the Bangladesh Trade and Tariff Commission.
Some 98 per cent are imported, mostly from Brazil, as production at state mills is insignificant.
State mills under the Bangladesh Sugar & Food Industries Corporation (BSFIC) produced 19,500 tonnes of sugar from locally grown sugarcane until March during the current fiscal year of 2021-22.
The amount was 40 per cent of the total production of 48,000 tonnes of last fiscal year, according to the BSFIC.
According to Custom House, Chattogram, about 4.85 lakh tonnes of refined and raw sugar worth Tk 1,897 crore was imported in the last 10 months of fiscal year 2011-22.
Currently raw sugar faces a Tk 3,000 customs duty per tonne, 30 per cent regulatory duty, 15 per cent value added tax (VAT) and four per cent advance income tax.
In the last one year, the price of sugar has increased by about 7 per cent, according to the Trading Corporation of Bangladesh yesterday.
Yesterday, wholesale prices in markets of Dhaka and Chattogram went up by Tk 50 to Tk 60 per maund (around 37 kilogrammes) amidst reductions in supplies from dealers.
Prices at Khatunganj wholesale market, the country's largest commodity hub at Chattogram, reached Tk 2,835 to Tk 2,850 a maund from Tk 2,770 to Tk 2,780 three days ago, said traders there.
At some retails in Dhaka and Chattogram, prices also edged up by Tk 2 to Tk 5 per kilogramme (kg) to reach Tk 85 to Tk 90.
Abdur Rahman, a wholesale trader in Khatunganj, claimed that there was no crisis of the product in the market. However, every dealer had reduced providing supplies, he said.
He added that refiners had also reduced deliveries from mills.
However, varying scenarios were unearthed in Dhaka.
Seven retailers in Kawran Bazar, one of the capital's largest kitchen markets, said sugar was being sold at the price which has been prevailing for the past one month and dealers so far had not informed them about any price hike.
However, Nurul Alam Shikdar, owner of Mamun General Store in Pallabi Extension area of Mirpur, said the price of both one kg packets alongside that of loose sugar had increased by Tk 5.
Dealers could not give him any specific reason behind the price rise, he said.
One refiner said India's export curbs would have an impact in the world market.
Mostafa Kamal, chairman and managing director of the Meghna Group of Industries, which runs a big refinery here, said they were observing the developments. He did not want to comment further.
Abul Hashem, vice president of Bangladesh Sugar Merchants Association, said at present there were different types of information floating around in the market about sugar.
The overall situation indicates that the price of sugar will increase further, he said.
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