The National Board of Revenue (NBR) on Wednesday reduced the regulatory duty on both refined and raw sugar imports by 50% to rein in local retail prices.
To reduce the price of sugar, the duty has been cut from 30% to 15%, effective immediately.
NBR explained in a statement issued on the day that this measure is intended to make sugar prices more bearable for consumers.
A statement also said that as a result of this reduction, the import cost of raw sugar will decrease by Tk11.18 per kilogram (kg), and the cost of refined sugar will drop by Tk14.26 per kg at the import level.
The NBR expects the price of sugar to decrease by a similar amount at the consumer level and also expressed hope that lowering the customs duty will discourage sugar smuggling through illegal channels and boost legal imports.
Steep prices
The retail sugar prices in Dhaka have increased by 2% over the past month, ranging from Tk125 to Tk135 per kg, according to data from the Trading Corporation of Bangladesh (TCB).
NBR pointed out that various global and domestic factors have contributed to the recent rise in the prices of daily essentials, including sugar.
Due to the global tensions, political unrest, and the significant devaluation of the Bangladeshi currency, prices of several essential goods have escalated.
Items such as baby food are also becoming increasingly unaffordable for most people.
It further said that recent student protests and the ongoing flood situation have added additional pressures, driving prices of essential items even higher.
According to the available data, the annual consumption demand for sugar in Bangladesh is 2-2.2 million tonnes where only 1.5% of the country's demand is met with locally produced sugar.
Five importers
Meghna Group of Industries (MGI) and City Group are the two main importers of sugar followed by S Alam Group, Abdul Monem Ltd and Deshbandhu Sugar Mills.
These five private sugar mills currently import more than 98% of the country's annual demand for refined sugar, whereas the raw sugar is mostly sourced from Brazil.
