Tariff commission suggests halving sugar import duty

The price of sugar can see a price cut as the Bangladesh Trade and Tariff Commission (BTTC) has recommended reducing import duty on unrefined and refined versions of the sweetener to 15 percent from the existing 30 percent.

The commission has also suggested increasing surveillance in the border areas to stop illegal import of sugar.

The commission made the recommendations in a report on 'rationalisation of sugar import duty' and sent those to the National Board of Revenue (NBR) today.

The import duty cut will play a significant role in decreasing sugar price in the local market, industry insiders said.

Today, sugar was sold at Tk 128 to Tk 135 per kg in different markets of Bangladesh, which was Tk 126 to Tk 135 a week ago.

Sugar price increased by 0.77 percent in the last one week, according to state-run Trading Corporation of Bangladesh.

Usually, the demand for sugar increases during the holy month of Ramadan (about four months from now) in Bangladesh.

Considering the increased demand, sugar refineries will now have to open letters of credit for sugar import to maintain a stable supply to the market, the BTTC said in the report.

In the last one month, the price of unrefined sugar in the international market has increased by 20.81 percent from $394 to $476.19, it added.

Bangladesh annually requires 24 lakh tonnes of sugar and five refiners meet around 99 percent of the total requirement by importing raw sugar mainly from Brazil.

State sugar mills meet just 1 percent of the demand.

Bangladesh's sugar imports fell sharply in 2023-24 fiscal year as refiners stayed away from placing orders to foreign buyers in the face of an illegal influx of the sweetener through the borders.

Import of raw sugar by the refiners stood at 13.86 lakh tonnes last fiscal year, down 25 percent year-on-year from 18.49 lakh tonnes the previous year, according to data compiled by the commerce ministry.