Dhaka: The Bangladeshi sugar market experienced a brief period of volatility following an announcement, later withdrawn, by the Bangladesh Sugar and Food Industry Corporation (BSFIC) to increase retail sugar prices by Tk 20 per kg.
The BSFIC issued a notification on Thursday, declaring the maximum price of sugar at Tk 160 per kg, up from the previous Tk 140. Subsequently, at certain wholesale shops, the price of sugar saw an increase of Tk 300-350 per 50-kg bag since Friday, following the notification. However, BSFIC backtracked the decision.
In a press release on Thursday night, the Ministry of Industries stated, “Considering the problems people are facing ahead of the holy month of Ramadan, the government has withdrawn the decision to increase the sugar price.”
According to the Directorate of Agricultural Marketing, the wholesale price of sugar stood at Tk 133.44-134 per kg last Thursday. However, by Saturday, the price had escalated by Tk 6-7, reaching Tk 140 per kg in the market.
Many retail markets observed sugar being sold at Tk 135 per kg on Thursday, with the price surging to Tk 140-145 per kg on Saturday.
Consequently, several retailers refrained from purchasing sugar, citing the challenge of selling at retail prices if a subsequent price decrease occurs, leading to potential losses. Traders expressed concerns that if retailers refrain from buying sugar, the market could become more volatile due to reduced supply.
