BANGLADESH: Zero duty to remain for time being
Published: 09/02/2010, 8:43:22 AM
The government will continue charging zero duty on imported raw sugar and levying half on refined sugar from mid-September onwards to keep the market stable, according to Bangladesh's Daily Times newspaper.
In July, the commerce ministry withdrew BDT2,000 (US$28.7) duty on a tonne of imported raw sugar and halved the specific duty on imported refined sugar to BDT2,000 from BDT4,000 for up to mid-September to prevent price rise during Ramadan.
The duty has been withdrawn to keep prices stable and give some respite to consumers, said a ministry statement yesterday.
The move came as sugar prices showed signs of edging up as retailers reportedly hoarded sugar to cash in on a probable rise in demand ahead of Eid.
The country's seven sugar refiners earlier requested the government to maintain the status quo on imports duty until prices become stable in global market, said Mostafa Kamal, chairman and managing director of Meghna Group of Industries.
Demand rises to nearly 5,000 tonnes a day on the holy month from more than 3,000 tonnes at other times. The country depends much on imports to meet its annual demand of 1.4 million tonnes.