Plan to procure 70,000mt sugar
The government will procure 70,000 metric tonnes of sugar from local and international sources keeping in mind the additional demand during the holy month of Ramadan, which will begin in August.
The government has endorsed two separate proposals, one for 12,500 metric tonnes and another for 25,000 metric tonnes of sugar in line with the demand forecast made by the industry ministry.
Officials told the news agency yesterday that the bulk procurement of 70,000 metric tonnes will be in addition to the earlier procurement of sugar.
Last year, the government had similar move for import of sugar to keep the market stable. But that move went in vain because of a trick by an unscrupulous group of businessmen.
It was alleged that some firms obtained the order for supply of sugar to the government. But finally they backed out of supplying the sugar as part of a plot hatched by a section of sugar merchants in connivance with certain officials.
As a result, the government could not release any sugar to the market on demand and the price went up during the Ramadan.
Taking advantage of the situation the unscrupulous business circle increased the sugar price and the people had to buy sugar at an excessively higher price.
But it is not clear what will happen this year. However, an industry ministry official said that they have moved much earlier this year to procure adequate sugar.
The country's annual demand of sugar is 1.2-1.4 million metric tonnes. The state-owned sugar mills produce about 140,000 metric tonnes against the production capacity of 200,000 metric tonnes.
The rest of the demand is met by private sugar refiners and import by the traders.
During the Ramadan in every year, the demand for sugar goes high because of additional consumption during the holy month.
Officials said that sensing this like the previous years, the government moved for procuring sugar by it from local and international sources to ensure smooth supply and stabilise the market.
Official sources said the Bangladesh Sugar and Food Industries Corporation (BSFIC), which is responsible for producing, procuring, importing and supplying the sugar under the public sector, has already invited tender to procure 20,000 metric tonnes from local sources and another 50,000 metric tonnes from international sources.
Though the sugar is bought from local source through a normal way of tendering, the BSFIC has to follow a very tight timeframe to import sugar from international source.
It has to complete the whole process from tender invitation to issuing work order only within 48-52 hours. As a result, the Cabinet Purchase Committee, who finally endorses such procurement or import proposal, has to deliver its decision within this timeframe.
The BSFIC floated tender for both buying sugar from local sources and import it from international sources. The import-related tender will be opened on May 7 and the cabinet purchase committee is scheduled to approve the bid on May 8.
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