Sugar disappears: Retailers stop selling it in fear of mobile court action against sale beyond govt fixed prices

An elderly woman reacted sharply after she was informed from the fourth successive grocer's that it had no sugar in its store.

''What is wrong with sugar? Has it gone out of the market?'' asked the woman to the grocer in a disturbed voice.

''Not that we have stopped selling sugar,'' replied the man sitting behind the cash counter of Lokman General Store at Hatirpool in the capital.

The retailer introducing him as Lokman Hossain said if he sells sugar at the government-fixed rate of Tk 65 per kilogram, he will have to count loss because of his purchase at higher rate from the wholesalers.

''If I charge more that the government-fixed rate, I will have to risk a fine of Tk 20,000 against a margin of Tk 2 each kilogram. So it is better to refrain from selling sugar,'' he added.

The woman, who declined to give her name, did not trust Lokman and offered to pay whatever price he demanded.

The grocer however turned down the offer and the woman, shelving her plan to buy the sweetener, put orders for other essential commodities.

This was the common scene at the groceries near the Hatirpool kitchen market in less busy afternoon hours yesterday.

Retailers at Hatirpool say they have stopped selling the sweetener fearing fines by mobile courts that are raiding stores to ensure sale of sugar and other essentials at the government-fixed rates.

Some retailers at Karwan Bazar also say they have stopped selling sugar to avoid fines.

The jittery, accompanied by the ongoing supply shortfall, pushed up the prices of sugar further yesterday.

Retailers, who were still selling the sweetener, charged Tk 70-75 for a kilogram, Trading Corporation of Bangladesh data shows.

In some cases, some retailers charged Tk 80 a kilo as off-take for sweetener increased ahead of the HSC results and the upcoming Ramadan.

Mofizur Rahman, a tea seller at Karwan Bazar, said he had to pay Tk 80 for a kg of sugar.

''When I mentioned the government announced price, I was advised to buy sugar from the government,'' he said.

Retailers blamed for high prices of sugar say wholesalers are charging Tk 70-71 for each kg now taking the advantage of the supply crunch.

Some retailers also claim the wholesalers are not issuing memos mentioning accurate price they charge for a 50-kg sack.

Jahirul Islam Russell, owner of Bhai Bhai General Store at Hatirpool, claimed wholesalers charge Tk 3,520 for a 50-kg sack of sugar.

But they do not give any cash memo against the sale, he said.

"How can we sell sugar at Tk 65 per kg after buying it at a higher rate?" said Delwar Hossain of Noakhali Store at Karwan Bazar. He said he has stopped selling the sweetener for a week.

Abul Hashem, vice-resident of Bangladesh Sugar Merchants Association, said the government should not monitor prices without ensuring adequate supply to the market.

He however said supply may improve within three-four days as some refiners promised to deliver sugar. ''Prices may drop if the companies supply it properly,'' added Hashem.

In the last one month, prices of sugar surged 14 percent amid businesses' move to have higher margins, banking on the supply shortfall that resulted from the shutdown of production at four out of six refineries.

Golam Mostafa, secretary general of Bangladesh Sugar Refiners Association, said supply-demand mismatch will be eliminated within seven days as two refiners -- Deshbandhu Sugar and S Alam Sugar -- have already resumed production.

The refinery of Meghna Group of Industries will restart soon, he said.

''But I cannot assure whether the price will fall,'' said Mostafa, also chairman of Deshbandhu Group, blaming middlemen for the recent price escalation.

Soruce : The Daily Star

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