The New Nation - Internet Edition

Bangladesh Sugar and Food Industries Corporation (BSFIC) has proposed to the government a huge increase in duties on imported sugar in the upcoming budget to cut down on the losses incurred by the sugar mills of the country.

BSFIC Chairman Mokhles Ur Rahman told a group of reporters at his office on Tuesday that his corporation has already sent the proposal to the Industries Ministry seeking the increase in specific duties both for raw sugar and imported sugar.

The BSFIC has proposed increase of the specific duty on raw sugar from existing Tk 4,000 to Tk 9,500 and on imported sugar from Tk 5,000 to 15,000.

"There will have to be a tariff adjustment for a balanced competition. The sugar industry needs all the government support. If the market price is balanced, the industry will survive," the BSFIC chairman said.

He said the marketing of local sugar is under threat amid existing "uneven competition."

He said that at present the production cost of one kilogram of sugar in the mills is Tk 38, while the selling price is Tk 31. "If the production cost does not go down, the amount of loss will increase."

Mokhles said the 15 state-owned mills in the country could produce 1.6-1.67 lakh metric tons of sugar against the demand of 12-13 lakh metric tons.

Emphasizing on government support, he said some 15,000 labourers and 500,000 farmers are directly involved with the industry. "It is said that about 5 million (50 lakh) people are indirectly involved with the industry."

Replying to a question, the BSFIC chairman said the total dues of the sugarcane cultivators, which was Tk 32.45 crore, has already been paid.