A shortage of gas has forced two sugar refining companies in Bangladesh to halve their amount of production.
Amid a sudden price hike in the sugar market, a team of the National Consumer Rights Protection (DNCRP) on Saturday visited the refineries of City Group, Meghna Group of Industries (MGI) and Abdul Monem Sugar Refinery Ltd in Narayanganj, according to bdnews24.com.
Citing papers presented by City and MGI, DNCRP Assistant Director Magfur Rahman said sugar production in their mills fell to half the capacity. “Officials said they cut production due to a lack of gas.”
City markets sugar under the brand name Teer and MGI’s sugar brand is Fresh.
Biswajit Saha, a director of City Group, said the gas shortage forced them to cut daily production from 3,200 tonnes to 1000-1,200 tonnes. “We’ve informed the government agencies about the matter.”
He also said the gas crisis has been lingering for about one and a half months.
The government raised the prices of sugar in the first week of October in an apparent move to catch up with the market as the traders were already selling at higher rates than the previously fixed prices.
The price of refined but loose sugar was fixed at Tk 90 a kg in the retail markets while the price of packaged sugar was set at Tk 95.
Sugar prices skyrocketed in Dhaka by the end of last week after most stores ran out of the product. Retailers who still had the products were charging customers up to Tk 110 per kg on Friday. The government bolstered its monitoring in the sugar market amid reports of supply crunch.