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Bangladeshi consumers are still paying high prices for sugar, even though the global price has been declining for the past three months.
The average global sugar price reached an 11-year high in April this year at US$650 per tonne, but has since declined to US$555 per tonne in July.
Despite the price fall of US$90 to US$95 per tonne in the international market, retail prices of the most common sweetener in the local market have remained largely unchanged at Tk 140-150 per kg.
The Bangladesh Trade and Tariff Commission (BTTC) said it would review sugar prices with refiners, but a decision has not yet been made.
Taslim Shahriar, assistant general manager of leading Bangladeshi conglomerate Meghna Group, said the country mainly imports sugar from Brazil and the Brazilian prices typically determine the local rates.
He said the companies are currently incurring a loss of Tk 10 per kg by selling sugar at government-fixed rates of Tk 120-125 per kg.
He said the import duties should be reduced significantly to help bring down prices.
Meanwhile, a report on Brazilian sugar exports published in Forbes on July 3 said the country raised its shipments by 31.8 per cent in June, with an average price of US$485 per tonne.
Sugar exports jumped as the centre-south of Brazil can produce a record volume of the commodity in the 2023/24 season, with the sugarcane crop registering a strong recovery in productivity, the Forbes report said.
The Bangladesh government has also contracted with Brazil to bring in 12,500 tonnes of sugar at US$524.21 per tonne for its subsidised sale, according to media reports.
Contacted, Trade and Tariff Commission Member Shish Haider Chowdhury told the FE that the commission will sit with the refiners next week to look into the matter.
After assessing international prices, import costs including freight or shipping charges and VAT or taxes paid by the refiners, the commission will review the price and send a proposal to the commerce ministry in this regard, he said.
Bangladesh has a demand for 2.0-2.2 million tonnes of sugar annually, of which it produces less than 20,000 tonnes.
Despite such dependence on imports, the government realises Tk 25 to Tk 30 in taxes from each kilogram of imported sugar.