FE Report

The government has failed to control the soaring price of sugar, as the product is being sold at a much higher rate than fixed by the commerce ministry.

The price of sugar increased by Tk 6 per kg in one week and Tk 10 in one month despite all government efforts to rein in the price of the most sought after commodity in Ramadan.

The government has withdrawn duty on unrefined sugar and fixed the mills gate price of sugar at Tk 39 per kg and retail at Tk 42, but now it sells between Tk 46 and Tk 48 per kg at the retail end.

Commerce Minister Faruk Khan on Wednesday held an emergency meeting with the sugar refiners but could not ascertain the reason for the price hike.

After the meeting, Mohiuddin Monem, a sugar refiner, said they urged the government to strengthen monitoring system and apprehend those engaged in price manipulation.

"The refiners are selling sugar at Tk 39 at the mills gate but traders manipulate the price at the other points of the value chain," he claimed.

City Group, Meghna Group, Deshbandhu and Igloo are the four biggest sugar refiners in the country.

Wholesalers, however, alleged that the refiners are trying to create artificial crisis by delivering less product in the market.

The refiners provide delivery orders but supply less quantity of the product to the wholesalers, they said.