Govt slashes profit margins on sugar, cooking oil

Business Desk :
The government has reduced allowable profit margins at the production, wholesale (distributor) and retail levels of sugar and cooking oil in an effort to mitigate skyrocketing price hikes.
Its producers are now entitled to keep a maximum markup of 1% on their products against the previous level of 2%, according to an official document.
With the move, wholesalers and retailers will be able to make a maximum profit of no more than Tk8 per one-litre bottle and Tk35 per five-litre bottle of edible oil.
The profit margin has been reduced by Tk5 per kg of sugar at the wholesale and retail levels, according to the document.
Earlier, it (profit margin) was 2% — Tk45 per five-litre bottle of edible oil and Tk10 per one-litre bottle – at the production, wholesale and retail levels.
The markup was Tk6 per kg on the sweetener at the wholesale and retail levels.
Currently, sugar has become both scarce and expensive in the local market in recent days.
Sugar was still selling at Tk100-120 in the kitchen market although the government set the price of packed sugar at Tk95 per kg and loose Tk90 per kg.
The central bank and the consumer rights protection agency on Sunday last assured the citizens of making the item available in the market soon.
At a meeting with the Directorate of National Consumer Rights Protection (DNCRP) on Monday, the sugar refiners assured that the problem of supply shortage in the market will end soon.
They, however, urged the government to provide uninterrupted gas supply with adequate pressure to the refineries.
The DNCRP has already inspected the sugar refineries against the backdrop of the crisis in the country.