Dhaka, July 18 (UNB) – A proposal to allow sugar export is likely to be considered by the Cabinet Economic Affairs Committee in its meeting on Thursday.  

A strict ban on sugar export is in force since March 2010.

According to official sources, the Commerce Ministry has moved the proposal seeking the Cabinet body’s approval for sugar export following a decision of a joint meeting of the representatives of the state-owned sugar mills, private sugar mills and sugar refineries.
 
The meeting, held in January 30 this year with the Commerce Secretary in the chair, had decided that the government can allow sugar export at limited scale after studying the domestic demand, stocks and the production capacity of the private sugar refineries and also the production capacity of the state-owned sugar mills.
 
The Commerce Ministry, however, recommended allowing the sugar export subject to the fulfillment of a number of conditions after Ramadan, the officials said.
 
One of the conditions is that the exporting firm must take permission from the Commerce Ministry before every export consignment. While seeking the permission, the exporting firm has to submit its stock position certified by the Bangladesh Sugar Refiners’ Association (BSRA).   
 
Another condition is that the exporting firm has to prove at least 10 percent value addition to its product that it would be exported, according to the officials.
 
After the fulfillment of the conditions, the Commerce Ministry can issue export permission when it is convinced with available stock of sugar in the domestic market and finds the sugar price stable. The Tariff Commission’s recommendation will be required for the export permission.
 
The Commerce Ministry sources claimed that they have moved the proposal for allowing sugar export after receiving request from the state-owned Bangladesh Sugar and Food Industries Corporation (BSFIC).  
 
They said the country’s current annual domestic sugar requirement is about 1.4 million metric tonnes while the production capacity is 3.58 million metric tonnes.
 
According to them, the increased production capacity is created by different refineries set up by private sector in recent years. But half of the capacity of the private refineries remained unutilised virtually for lack of domestic demand.
 
Besides, the state-owned BSFIC has a stock of 183,192 metric tonnes of sugar of which 110,000 metric tonnes is locally produced. If such sugar is marketed locally, it will incur a financial loss because of its higher production cost.