The Directorate General of National Consumer Rights Protection (DNCRP) found several irregularities in marketing sugar and held the traders concerned responsible for the ongoing volatility in its prices.
The irregularities were found while the government agency's teams inspected refining factories, wholesale traders and retail outlets across the country, said the DNCRP on Monday.
The entity placed a report on the recent sugar market volatility and delivered 11-point proposals to keep the market stable, as sugar prices shot up to Tk 100-120 a kg against the government-fixed rates of Tk 90-95 a kg.
The report was finalised after a meeting organised by the directorate, involving refiners, dealers, retailers, consumers right bodies, Bangladesh Trade and Tariff Commission (BTTC), and Bangladesh Petroleum Corporation (BPC).
Meanwhile, after creating a shortage in the market by reducing supply, sugar refiners sent a letter to the BTTC to raise sugar prices further citing higher import costs, DNCRP Director General (DG) A H M Shafiquzzaman told the newsmen in the meeting.
The DNCRP DG said the directorate talked to the government agencies concerned to ensure smooth gas supply to the refineries.
"The sugar companies promised on Monday to normalise supply, but it will take a few days."
The companies have to maintain unit price in their vouchers. If a voucher lacks unit price, there is scope for manipulation, Mr Shafiquzzaman added.
Secretary General of Bangladesh Sugar Refiners Association and Managing Director of Deshbandhu Group Golam Rahman said every player in the sector has some responsibilities for the current situation in the sugar market.
"But despite all odds, we want to keep sugar supply normal, and to do so, stable gas supply has to be ensured."
Apart from low gas supply and high import duties, most of the refiners are facing complications in opening letters of credit (LCs) amid volatile USD market.
"We have sent a letter to the BTTC to review sugar prices amid higher production costs for these reasons."
"Those (traders) who need sugar can give us requisition, we'll deliver it to them directly," he added.
However, the DNCRP found irregularities in five major sugar refineries, include those of City, Meghna, TK, Abdul Monem, and Deshbandhu Group.
Lack of price information, failure to supply product to dealers - ordered two months back, no price list in the mill-gates, and lower quantity of goods in packets were some major irregularities - found in the factories.
Besides, squeeze in sugar delivery was mainly due to low supply of gas to the units, according to the report.
Shafiur Rahman, deputy manager of Meghna Group, said his factory needed 15 PSI (pressure per square inch) of gas, but was getting only 4.0 PSI.
Amitabh Chakraborty, advisor of City Group, said, "Because of gas supply shortage, we are able to produce only 1,400-1,500 tonnes of sugar a day against (usual) 5,000 tonnes."
"Duty of Tk 30 for each kg of sugar should be reduced to give the item to the customers at lower rates," he opined.
The country's sugar market became volatile last week amid a supply cut by the refiners, and its prices shot up to Tk 100-120 a kg from Tk 90-95 a kg.
Bangladesh has a demand for 2.0-2.2 million tonnes of sugar a year, while it imports 2.0-2.4 million tonnes.
