2024-03-12 20:45:04
After inviting bids for procurement of sugar, the bids had to be canceled due to non-response and overquoted prices. The price of sugar produced by government sugar mills is very high. In this situation, the Ministry of Commerce has taken the initiative to procure 8 thousand metric tons of sugar from the private company S Alam Refined Sugar Industries Limited. As the price of sugar per kg is 134.50 taka, the total cost will be 107 crore 60 lakh taka.
Due to the increase in the price of sugar in the international market, it was announced that TCB would sell sugar at the rate of Tk 100 per kg instead of Tk 70 to the family card holders. Later, through a notification, it was withdrawn and the decision to sell sugar at Tk 70 per kg was upheld. Accordingly, the government will have to pay a subsidy of Tk 64.50 per kg of sugar. Sources said that the government will supply sugar at this subsidized price to reach the common people at affordable prices during the holy month of Ramzan.
According to sources, Trading Corporation of Bangladesh (TCB), an organization under the Ministry of Commerce, has set a target of purchasing 1 lakh 44 thousand metric tons of sugar in the annual purchase plan for the fiscal year 2023-2024. Earlier, a total of 14 thousand 500 metric tons of sugar was purchased. This time an initiative has been taken to buy another 8 thousand metric tons (50 kg bags).
According to sources, TCB is selling products at subsidized prices every month among 1 crore low-income families with family cards. In order to implement the decision of the government, on the occasion of the holy month of Ramadan, an initiative was taken to buy sugar from Bangladesh Sugar and Food Corporation with the aim of selling sugar to 1 crore families with family cards. The Ministry of Commerce decided to buy sugar from local market/international sources on an urgent basis instead of sugar from Sugar and Food Industry Corporation as the company proposed millgate price of sugar at Rs 160 per kg, which is much higher than the market price. Six bids from July to December last year did not receive any response. Besides, three tenders were rejected as they offered higher prices. In this situation, it becomes necessary to buy sugar through direct purchase method (DPM) ahead of Ramadan. In view of this, TCB decided to buy 8 thousand metric tons of sugar at relatively low price and in short time.
According to the Commerce Ministry’s decision, local refinery S Alam Refined Sugar Industries Limited sent the bid. Supply of 8,000 metric tonnes of sugar in 50 kg sacks is quoted at Tk 135 per kg including 2 percent ATI and cost of delivery to TCB warehouse. However, through negotiation, it was decided to procure this sugar at a lower price of 50 paise per kg. That is, the total cost of buying 8 thousand metric tons of sugar at the rate of Tk 134.50 per kg will be Tk 107 crore 60 lakh. According to the terms of the tender, the sugar will reach TCB’s warehouse by March 15.