Sugar has almost disappeared from the market following a government decision. Sugar is not available in the market from the next day after the government fixed its price. Edible oil is not being sold anywhere in the market at the rate fixed by the government. The sale price of chickpea was fixed in Chittagong but the market of the commodity has gone wild there too.
Virtually there is no control over the market. The businessmen have been selling commodities as per their will or stopped selling. The government itself went into hiding after fixing the prices of commodities. None is to monitor the market. As a result, the market has become reckless.
According to the government data, there is no deficit of sugar in the market. As per the Tariff Commission, current sugar stock in the market is 101,055 metric tons. From April to 21 June 2011, letter of credits (LCs) were opened to import 412,587 metric tons of raw sugar. But "there is no sugar" is the common reply from shopkeepers in the market.
The Commerce Ministry has fixed the prices of sugar, soybean oil and palm oil on 20 June 2011 ahead of the month of Ramadan. As per the government-fixed rate, the retailers will have to sell loose soybean oil at taka 109 per liter, palm oil at taka 99 per liter and sugar at taka 65 per kg. The marker has turned volatile after the government to the decision to this effect.
The retailers have been blaming the wholesalers for high prices of sugar saying that it would not be possible for the retailers to sell sugar at a lower price if wholesalers sold the item to them at increased price. On the other hand, wholesale traders claimed that there was supply shortage of sugar in the market despite the closure of a number of big sugar refineries.
Open Market Without Sugar
There was almost no trace of sugar in retail grocery shops in kitchen markets of the capital during a visit in the market on July 22. Most of the retail shopkeepers informed that they are refraining from selling sugar.
There are around 25 shops at Palashi kitchen market. During a visit to the market on July 22 morning, it was seen that sugar was selling at only one shop at taka 72 per kg. The shop owner said he will not bring sugar further from the wholesale market after the current stock of his shop will exhaust.
Mohammad Abdus Satter of Obayed Store of the market said: "I stopped bringing sugar for selling just being fed up (with the situation). Sugar is unavailable in Moulavibazar (a wholesale market in Dhaka). If we somehow find out some sugar, we have to purchase it at increased rate. How we sell sugar at a low price?"
Nurul Amin, owner of Amin Store at Palashi bazar said he had not brought sugar from the wholesale market yesterday. His complain is that the wholesalers of Moulavibazar are selling sugar without issuing memos so that none could be able to know the actual sale price of sugar. They (wholesalers) have started applying the tricks after a mobile court fined a number of wholesale traders for selling sugar at exorbitant price. There was no loose sugar at two shops in Bokshibazar intersection area. The situation was the same when there was a searched for sugar at the grocery shops located opposite the Shyamoli cinema hall. Instead, it was seen that packed sugar was being sold at those shops at taka 70 per kg.
Mohammad Sohag, co-owner of Ratul Store of Topkhana Road, came to Moulavibazar to buy a sack of sugar yesterday noon. He said majority of the wholesale shops of Moulavibazar area were closed. Though a few shops are open, they charged taka 3500 for per 50-kilogram sack of sugar.
What is wrong with sugar: The wholesalers claimed that sugar price has increased due to supply shortage against the demand in the market. They said the current daily demand of sugar is 5,000 metric tones while supply is only 2,000 metric tons. It is the reason behind sugar price soaring in the wholesale market. At a meeting with sugar refinery owners on July 9 ( 2011), Commerce Secretary Golam Hossain informed that the stock of sugar in the country was 97,000 metric tons. In the meantime, LCs were opened to import 217,000 metric tons of sugar. Besides, Bangladesh Food Industry and Sugar Corporation has a reserve of 53 metric tones of sugar. There would be a surplus of 100,000 metric tones of sugar against the demand of 300,000 metric tons up to Eid-ul-fitr (in early September). The businessmen informed the meeting that the current stock of sugar was 75,000 metric tons.
However, the Tariff Commission, on the basis of data given by the refiners, said that the current sugar stock in the market is 101,055 metric tons. From April to 21 June 2011, LCs were opened to import 412,587 metric tons of raw sugar. The total quantity would reach 382,325 metric tons if the available stock of raw sugars was refined properly. Taking into account the statistics of the sugar stock, the Tariff Commission at the beginning of July, made its observation that there would be no crisis of sugar in the market.
Abul Hashem, Vice President of Bangladesh Sugar Traders Association said that they did not get adequate supply of sugar following the close down of four local refineries. If sugar was not supplied to the market by refiners as per government-fixed price, it would not be possible for them to sell at reduced prices.
Golam Mostafa , President of Bangladesh Sugar Refiners Association and Managing Director of Deshbandhu Sugar Mills Limited said that there were 80,000 metric tons of sugar in and around the Chittagong seaport. Another 35,000 metric tons sugar are on import pipeline. The sugar crisis would go soon.
No Loose Soybean Oil in Market
Loose soybean oil is also not available in kitchen markets and grocery shops of the capital. Most grocers advised the consumers to buy bottled and packet soybean oil when they asked the shopkeepers to sell loose soybean oil. Some retailers, who were still selling loose soybean oil are charging taka 4 to 5 taka more per liter beyond the government-fixed rate. Loose soybean oil was being sold at taka 115 per liter at different places of Mirpur in the capital.
‘The government fixed taka 109 as the price of per liter loose soybean oil, but no impact of this was seen in the market. I bought the cooking oil at taka 115 a liter,’ a shopper alleged. Loose cocking oil was hardly found in the grocery shops located opposite Hatirpool kitchen market. Everybody was selling bottled and packed soybean oil. But loose soybean oil was being sold at taka 112 to 114 per liter inside the kitchen market. In Karwanbazar too, loose soybean oil was being sold at similar price.
Secretariat-Based Government Efforts
Officials of the Commerce Ministry were present at the secretariat even on holiday on 22 July (Friday). They would also attend their respective offices on every Friday and Saturday (weekly holidays) up to Eid-ul-fitr.
The Commerce Ministry sources said officials of the 14 mobile courts which have been formed to monitor markets on the occasion of Ramadan met with Additional Secretary of Commerce Ministry, Murtaza Ali Chowdhury after rounding up different kitchen markets on 22 July. The mobile courts in their observation blamed importers for the current sugar crisis. The importers did not import sugar timely. Another observation of the mobile courts was that sugar was selling at higher price much before the government fixed its price. The traders who bought sugar at high price during that time are now in trouble. And for that reason, sugar price soared in rapid pace.
The Commerce Ministry had issued letters on 21 July 2011 to the owners of four closed sugar refineries asking for the reason behind closing their factories and for not importing sugar before Ramadan. Sources said, the authority of Deshbandhu Sugar Mills informed the ministry on the following day that 52,000 metric tons sugar imported by them is scheduled to reach the country within next three to four days. And Meghna Group, the owner of big sugar refinery, said 75,000 metric tons of sugar being imported by them would reach within one week. Two edible oil refiners inform nothing to the ministry until now.
Virtually there is no control over the market. The businessmen have been selling commodities as per their will or stopped selling. The government itself went into hiding after fixing the prices of commodities. None is to monitor the market. As a result, the market has become reckless.
According to the government data, there is no deficit of sugar in the market. As per the Tariff Commission, current sugar stock in the market is 101,055 metric tons. From April to 21 June 2011, letter of credits (LCs) were opened to import 412,587 metric tons of raw sugar. But "there is no sugar" is the common reply from shopkeepers in the market.
The Commerce Ministry has fixed the prices of sugar, soybean oil and palm oil on 20 June 2011 ahead of the month of Ramadan. As per the government-fixed rate, the retailers will have to sell loose soybean oil at taka 109 per liter, palm oil at taka 99 per liter and sugar at taka 65 per kg. The marker has turned volatile after the government to the decision to this effect.
The retailers have been blaming the wholesalers for high prices of sugar saying that it would not be possible for the retailers to sell sugar at a lower price if wholesalers sold the item to them at increased price. On the other hand, wholesale traders claimed that there was supply shortage of sugar in the market despite the closure of a number of big sugar refineries.
Open Market Without Sugar
There was almost no trace of sugar in retail grocery shops in kitchen markets of the capital during a visit in the market on July 22. Most of the retail shopkeepers informed that they are refraining from selling sugar.
There are around 25 shops at Palashi kitchen market. During a visit to the market on July 22 morning, it was seen that sugar was selling at only one shop at taka 72 per kg. The shop owner said he will not bring sugar further from the wholesale market after the current stock of his shop will exhaust.
Mohammad Abdus Satter of Obayed Store of the market said: "I stopped bringing sugar for selling just being fed up (with the situation). Sugar is unavailable in Moulavibazar (a wholesale market in Dhaka). If we somehow find out some sugar, we have to purchase it at increased rate. How we sell sugar at a low price?"
Nurul Amin, owner of Amin Store at Palashi bazar said he had not brought sugar from the wholesale market yesterday. His complain is that the wholesalers of Moulavibazar are selling sugar without issuing memos so that none could be able to know the actual sale price of sugar. They (wholesalers) have started applying the tricks after a mobile court fined a number of wholesale traders for selling sugar at exorbitant price. There was no loose sugar at two shops in Bokshibazar intersection area. The situation was the same when there was a searched for sugar at the grocery shops located opposite the Shyamoli cinema hall. Instead, it was seen that packed sugar was being sold at those shops at taka 70 per kg.
Mohammad Sohag, co-owner of Ratul Store of Topkhana Road, came to Moulavibazar to buy a sack of sugar yesterday noon. He said majority of the wholesale shops of Moulavibazar area were closed. Though a few shops are open, they charged taka 3500 for per 50-kilogram sack of sugar.
What is wrong with sugar: The wholesalers claimed that sugar price has increased due to supply shortage against the demand in the market. They said the current daily demand of sugar is 5,000 metric tones while supply is only 2,000 metric tons. It is the reason behind sugar price soaring in the wholesale market. At a meeting with sugar refinery owners on July 9 ( 2011), Commerce Secretary Golam Hossain informed that the stock of sugar in the country was 97,000 metric tons. In the meantime, LCs were opened to import 217,000 metric tons of sugar. Besides, Bangladesh Food Industry and Sugar Corporation has a reserve of 53 metric tones of sugar. There would be a surplus of 100,000 metric tones of sugar against the demand of 300,000 metric tons up to Eid-ul-fitr (in early September). The businessmen informed the meeting that the current stock of sugar was 75,000 metric tons.
However, the Tariff Commission, on the basis of data given by the refiners, said that the current sugar stock in the market is 101,055 metric tons. From April to 21 June 2011, LCs were opened to import 412,587 metric tons of raw sugar. The total quantity would reach 382,325 metric tons if the available stock of raw sugars was refined properly. Taking into account the statistics of the sugar stock, the Tariff Commission at the beginning of July, made its observation that there would be no crisis of sugar in the market.
Abul Hashem, Vice President of Bangladesh Sugar Traders Association said that they did not get adequate supply of sugar following the close down of four local refineries. If sugar was not supplied to the market by refiners as per government-fixed price, it would not be possible for them to sell at reduced prices.
Golam Mostafa , President of Bangladesh Sugar Refiners Association and Managing Director of Deshbandhu Sugar Mills Limited said that there were 80,000 metric tons of sugar in and around the Chittagong seaport. Another 35,000 metric tons sugar are on import pipeline. The sugar crisis would go soon.
No Loose Soybean Oil in Market
Loose soybean oil is also not available in kitchen markets and grocery shops of the capital. Most grocers advised the consumers to buy bottled and packet soybean oil when they asked the shopkeepers to sell loose soybean oil. Some retailers, who were still selling loose soybean oil are charging taka 4 to 5 taka more per liter beyond the government-fixed rate. Loose soybean oil was being sold at taka 115 per liter at different places of Mirpur in the capital.
‘The government fixed taka 109 as the price of per liter loose soybean oil, but no impact of this was seen in the market. I bought the cooking oil at taka 115 a liter,’ a shopper alleged. Loose cocking oil was hardly found in the grocery shops located opposite Hatirpool kitchen market. Everybody was selling bottled and packed soybean oil. But loose soybean oil was being sold at taka 112 to 114 per liter inside the kitchen market. In Karwanbazar too, loose soybean oil was being sold at similar price.
Secretariat-Based Government Efforts
Officials of the Commerce Ministry were present at the secretariat even on holiday on 22 July (Friday). They would also attend their respective offices on every Friday and Saturday (weekly holidays) up to Eid-ul-fitr.
The Commerce Ministry sources said officials of the 14 mobile courts which have been formed to monitor markets on the occasion of Ramadan met with Additional Secretary of Commerce Ministry, Murtaza Ali Chowdhury after rounding up different kitchen markets on 22 July. The mobile courts in their observation blamed importers for the current sugar crisis. The importers did not import sugar timely. Another observation of the mobile courts was that sugar was selling at higher price much before the government fixed its price. The traders who bought sugar at high price during that time are now in trouble. And for that reason, sugar price soared in rapid pace.
The Commerce Ministry had issued letters on 21 July 2011 to the owners of four closed sugar refineries asking for the reason behind closing their factories and for not importing sugar before Ramadan. Sources said, the authority of Deshbandhu Sugar Mills informed the ministry on the following day that 52,000 metric tons sugar imported by them is scheduled to reach the country within next three to four days. And Meghna Group, the owner of big sugar refinery, said 75,000 metric tons of sugar being imported by them would reach within one week. Two edible oil refiners inform nothing to the ministry until now.
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