Sugar import declines with falling demands

Staff Reporter :
Sugar consumption demand has declined significantly in the country as the price it is steadily increasing.

Due to fall in demand, the sugar import has fallen down by 5.75 lakh tonnes or 24 per cent in the outgoing fiscal year compared to the previous fiscal year, according to a data of the National Board of Revenue (NBR).

The NBR data showed that over 24.24 lakh tonnes of sugar was imported in the fiscal year 2021-22. But it declined to 18.48 tonnes in the last fiscal year (2022-23).

Currently sugar is selling at Tk 140 per Kg, which was Tk 80 per Kg in August of last year, according to the Trading Corporation of Bangladesh (TCB).

The revenue earnings have also declined by Tk 170 crore or 4 per cent from the sector at the end of the outgoing fiscal year.

The NBR collected Tk 4,594 crore in last fiscal year, which was Tk 4,764 crore in the previous fiscal year, as per the NBR data showed.

Traders have attributed the rise in sugar prices to inability to open Letters of credit (LCs) due to the dollar crisis at various times, increase in the exchange rate of the dollar, increase in import duties and price hikes in the international market.

But, there is no impact on the domestic market, although the NBR reduced duties on sugar import and even the prices of it falls globally.

Currently, the importers are paying Tk3,000 specific tax per tonne of sugar with 15 per cent VAT, 20 per cent regulatory duty and 2 per cent advance income tax.

There are five private sugar refineries in the country. They have been selling necessary sugar by refining raw sugar imported from the international market.

Currently, the daily production capacity of the private refiners is about 10,200 tonnes.

The country’s annual demand for sugar is from 18 to 20 lakh tonnes. Of the amount, only around 1 lakh tonne is produced in the country and the rest comes from India, Brazil and Argentina.

To keep the domestic market stable, the refiners have been importing raw sugar at international prices. Sugar price often fluctuates in the global market.

Refiners have demanded of the government to withdraw all duties on import of raw sugar due to skyrocketed prices of sugar in the local market.