Bangladesh: Is Tk42 tariff on sugar import keeping its prices soaring?

Published 2024년 3월 3일

Tridge summary

Despite the Bangladesh government's recent reduction in fixed customs duty on sugar imports, prices have continued to rise due to tariffs, high import costs, and the pressure of smuggled sugar. Over the last week, the price of sugar per maund (37.32 kg) has increased by Tk120-140 in the country's largest wholesale market. The smuggling of sugar, particularly low-quality sugar from India, has also increased, leading to calls from the Bangladesh Sugar Refiners Association for the government to halt the illegal supply, which is causing revenue loss and damaging the domestic industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The government has recently cut fixed customs duty on the import of sugar, a key essential commodity, to keep its prices stable but the government's move turned futile as the prices have recently increased instead. Attributing the fixed customs duty cut by 50 paisa per kg as minimal, importers say they still have to pay Tk42 as tariffs. The industries ministry on 22 February revoked its decision hours after the announcement of the price increase of brown sugar produced by Bangladesh Sugar and Food Industries Corporation by Tk20 per kg. But in the meantime, sugar prices increased by Tk4-5 per kg as a result of the price hike decision, although it was later revoked. According to traders, the price of sugar per maund (37.32 kg) has increased by Tk120-140 in the country's largest wholesale market Khatunganj in Chattogram over the last week. Average sugar prices per maund were at Tk5,000-5,020 yesterday which were at Tk4,880-4,900 a week ago. Due to the increase, the prices rose by Tk5 ...

Source: TBS