Sugar sold at all-time high

Refiner, trader blame each other
Sugar sold at all-time high prices for the third consecutive day yesterday with the middle and lower-middle class people queuing longer than ever at the mobile fair-price points.
The refiners and traders continue blaming each other amid government’s failure in checking the price due to lack of sugar imports and poor open marker operation.
“It is painful buying sugar at such high price. The difference between the present retail market and fair-price centre rate is about Tk 20 which forced me to stand in the queue,” said an official of a private firm Abul Hashem.
Hashem was seen waiting in the queue, along with many others, for sugar at Tk 42 at the Trading Corporation of Bangladesh (TCB) Karwan Bazar outlet. He said this long wait saved him some money, which he could spend on other purposes.
On Monday, retail price of sugar stood at Tk 60-64, though the wholesale market rate dropped by Tk 1 per kg because another refiner S Alam entered the market with a capacity of supplying about 1,200 metric tonnes of sugar a day.
Refiners said there is no shortfall in the market, claiming that they are supplying about 4,000 tonnes of sugar at Tk 39 a kg from the mill gates every day.
Wholesalers, however, opposed refiners’ claim alleging that there was a shortfall in the market due to belated deliveries by the millers, which in turn resulted in a hike in sugar transportation cost.
“It is not wholly true that they (millers) are selling sugar at Tk 39 a kg at mill gates. Many of us had bought sugar at higher prices before millers announced to sell at Tk 39 per kg,” said general secretary of Moulvibazar Merchant Association.
He claimed that sugar had not been distributed to traders at government-fixed rate.
Wholesalers at Moulvibazar, one of the major wholesale hubs, also alleged that fewer delivery orders (DOs) were issued at Tk 39 per kg by refiners.
“Those who offered higher price got sugar, but not all,” said a wholesaler at Moulvibazar.
However, refiners blamed wholesalers for spreading rumours regarding further price hike after Eid. In a letter to the Ministry of Commerce, refiners brushed aside the allegation of inadequate supply by millers. The refiners also said more than 2 lakh metric tonnes of sugar would arrive by the first week of October.
Visits at different markets revealed that many traders, especially wholesalers, stocked sugar and rationed supplies to retail sellers.
Allegations of unfair means by a section of millers were also found which includes the market going under control of a few refiners amid weak market intervention by government entity–TCB.
TCB itself is suffering from poor stocks and still awaiting consignment of sugar–more than 37,000 metric tonnes–to arrive.
Earlier the government had rejected Bangladesh Sugar and Food Industries Corporation’s plea to import more than one lakh tonnes of sugar.
Market analysts said sugar import and marketing by the government could have helped ease the price curbing the monopoly of private sector at a time when global sweetener market witnessed rise on a bleak output forecast.
Feroz Ahmed, secretary of Ministry of Commerce, however, said the government asked the millers to increase the number of fair-price points in the city. Presently millers are selling sugar at Tk 42 per kg at about 40 different points.
“Price of sugar has been increased by creating artificial crisis although there is no supply shortage,” he said adding that supply of the sweetener will increase as S Alam Group entered the market.
“We are investigating the reasons for the artificial crisis and the persons involved in it,” he added.
Refiners and wholesalers said that the price would drop if the supply of sugar increases. They were also afraid that high price might lessen consumer demand.  
 
Courtesy of The Daily Star