Bangladesh reissues tender to export 50,000 tonnes of sugar to EU

Bangladesh Sugar and Food Industries Corp has reissued an international tender to export 50,000 tonnes of white sugar to the European Union, in an effort to tap high state stocks.

The tender will close on Nov 30, a state agency official said on Thursday, adding that the original tender that opened last week drew no response.

The sugar, obtained from locally produced cane, will be exported to EU countries under a preferential quota for the least-developed countries.

Bangladesh increased duty on imports of raw and refined sugar in August to discourage overseas buying amid a drop in prices due to ample supplies.

The state agency has been struggling to sell its stock in the domestic market as private refiners are offering lower rates on the back of low global prices of the sweetener.

White sugar from the government stockpile is being sold at mill gates at 37 taka ($0.48) a kg, almost half the cost of production.

Private refiners in Bangladesh imported around 2 million tonnes of raw sugar in the fiscal year ended in June, up from 1.37 million the previous fiscal year.

Bangladesh depends on imported raw sugar to meet annual demand of 1.4 million to 1.5 million tonnes of refined sugar.

In late 2012, the government allowed exports of sugar by private refiners who had been calling for overseas sales as they have more than 3 million tonnes of refining capacity.

Private refiners mostly import raw sugar from Brazil, India and Thailand and export refined sugar to East Africa and the Middle East.

($1 = 77.97 taka)