Govt to increase import duty on sugar

The government is contemplating increasing import duty on both crude and refined sugar in a move to protect local industries.

Apart from the import duty hike, it would also fix the import quota for sugar, Industries Minister Amir Hossain Amu told Parliament on Tuesday.

He, however, said a formal decision would be taken after consulting the industries, commerce and finance ministries.

The import duty on sugar was increased in April last year. The duty had been fixed at Tk 4,000 per ton of refined sugar and Tk 2,000 per ton of crude sugar.

The industries minister had told MPs last year that Bangladesh needed 1.4 million ton sugar every year.

The 15 sugar mills in the country produce only seven to eight percent of the demand while the rest is imported, according to the minister.

On Tuesday, he said the sugar mills in Bangladesh had 145,257.55 ton unsold sugar in reserve until Jan 9.

The mills started this year’s production even as large amount of sugar remained unsold.

According to those involved in the trade, the large amount of sugar remained unsold as prices of local sugar was more than imported sugar.