• Indian sugar is entering Chittagong under the guise of other products
• The price per maund decreased by Rs.400 during the month
• Consumers are not benefiting even if the government loses revenue
Entire Chittagong including Khatunganj is the country’s second largest consumer goods wholesale market for smuggled Indian sugar. Due to the marketing of these black market sugars, the price of sugar per maund in Khatunganj has decreased by 400 rupees. But it has no effect on the retail market.
Traders say that smuggled Indian sugar is substandard. The market of refined sugar in the domestic industry is dying due to these substandard black market sugars. Again, consumers are being cheated by not reducing the retail prices even though the government has lost a large amount of revenue.
It is known that there is a demand of about 2.2 million tons of sugar in the country as usual. Out of this, 25 thousand tons of refined sugar comes annually from 15 state sugar mills. That is why the majority of the sugar needs to be imported at the private level to meet the needs of the country. For this reason, City Group, Meghna Group, Abdul Monem Company, Deshbandhu Sugar and S Alam Sugar Industries import more than 2.2 million tons of ‘raw’ sugar.
Now the market is flooded with illegal duty free sugar. Because of these smuggled sugars, sugar has to be sold in the market at a lower costing (import price, transportation, production price including refining) price. In this we are suffering financial loss.- Subrata Kumar Bhowmik, Executive Director of S Alam Group
According to the calculations of the National Board of Revenue, 17 lakh 31 thousand 542 tons of sugar have been imported from July 1 to May 6 of the current financial year. The government got 6 thousand 333 crore 43 lakh 39 thousand 689 taka revenue from these sugar imports.
Talking to Artatdar and DO traders of Khatunganj, it is known that the price of sugar per maund has decreased by Rs. 400 in the last one month. On Tuesday (May 7) S Alam’s ready sugar (direct delivery on going to the mill gate) is Tk 4625 to Tk 4630 per maund. DOs with three-four day supply are selling at Tk 4570-4580. Along with S Alam of Chittagong, Meghna, CT and Abdul Monem Company have sugar. But a month ago, at the end of Ramadan, the price of these sugars was around 5 thousand rupees.
RM Enterprises is a big trader of oil and sugar in the wholesale market of Khatunganj. Alamgir Parvez, director of Chittagong Chamber of Commerce and Industry, owner of the company, told Jago News, “The whole of Khatunganj is full of smuggled Indian sugar.” Most of the ready sugar traders in Khatunganj are now selling Indian sugar. These Indian sugars are about 1000 taka less per maund than desi sugar. So retailers, out-of-town grocers or food manufacturers are buying Indian sugar.’
He said, ‘The government is losing thousands of crores of revenue due to the sale of duty-evading sugar. Again the domestic factories are suffering major losses, which will have a serious impact on the domestic factories.
General Secretary of Khatunganj Trade and Industries Association Syed Chagir Ahmad told Jago News, ‘The market is suffering due to the black market sugar of duty evasion. The government should take measures to prevent smuggling of sugar.’
Talking to traders, it is known that the price of sugar in Bangladesh is twice as big as that of neighboring India. According to Tuesday’s calculations, the retail price of sugar in India’s West Bengal is Rs 45 per kg, which is equivalent to Rs 70 in Bangladesh. And on Tuesday, retail sugar is being sold at Tk 140 per kg in Kazi Deuri market of Chittagong. Moreover, in Bangladesh, one has to pay a duty of 37 rupees per kg of sugar. That is why some influential syndicates are bringing sugar from the Indian market to Bangladesh through the border. The sugar coming from Sylhet, Moulvibazar, Brahmanbaria, Mymensingh, Netrakona, Jamalpur, Feni and Mirsarai border of Chittagong is spreading all over the country.
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Law and order forces have already seized two shipments in Chittagong. On January 19 this year, the District Intelligence Police arrested two people along with three tons of Indian sugar from West Alinagar India-Bangladesh border area under Zorarganj police station of Chittagong. On April 20, RAB arrested an onion-garlic trader who was carrying 25 tons of Indian sugar from Madhya Chaktai Chaulapatti area. Law and order forces recovered 30 tons of Indian sugar from a furniture factory in Nafiz Gali, one kilometer under Chandgaon police station of the city, on April 27. Meanwhile, a wood trader was arrested.
Talking to the traders of Khatunganj and Chaktai, it is known that some syndicates started importing stolen onions from India after the price of onions in the country increased in the past. Among them are black market syndicates centered on Khatunganj and Chaktai. The syndicates started bringing Indian sugar to Chittagong under the guise of bringing onions from the border after managing various departments including the administration for a month.
Now our country’s market is occupied by Indian stolen sugar. Those who are in charge at the border, they are allowing these sugars to enter. Even if not, the smuggled goods could not have taken over the market like legal goods. – Cab Chittagong divisional president SM Najer Hossain.
On the condition of anonymity, an onion grower from Chaktai told Jago News, ‘Indian sugar was first brought to the warehouse by trucks. Then overnight plastic bags are printed in the name of domestic companies and packed in 50 kg bags and sold as ready sugar. As the S Alam group is dominant in Chittagong, the smuggled sugar is not packaged in the name of S Alam. Indian sugar is marketed by printing sacks of CT, Meghna, Deshbandhu or Abdul Monem companies.
The businessman’s statement is confirmed by the shipment of Indian sugar seized by the law enforcement agencies. The 30 tonnes of sugar seized on April 27 was packed in Meghna Group’s Fresh brand sacks. During the raid, the arrested person could not show any valid documents for these sugars. Besides, the district agricultural marketing officer, who participated in the campaign, checked the sugar and told the media that it was not country-made sugar.
Domestic investors are facing huge financial losses due to smuggled Indian sugar. Chittagong-based top sugar refinery company S Alam Sugar Refined Industries supplies sugar to Chittagong district and surrounding districts. All the sugar refining companies including S Alam are suffering due to these duty evasion sugars.
Speaking about this, S Alam Group Executive Director Subrata Kumar Bhowmik told Jago News, ‘Now the market is full of duty-free sugar coming illegally. Because of these smuggled sugars, sugar has to be sold in the market at a lower costing (import price, transportation, production price including refining) price. We are suffering financial losses. Even then we are opening LC regularly. We have informed the relevant departments of the government about the sale of stolen sugar. I hope that they will be proactive in stopping the marketing of these illegal sugars.
In this regard, Azizur Rahman Chowdhury, head of the commercial department of Abdul Monem Company, a private sugar producing company, told Jago News, “The government is losing a large amount of revenue due to Indian sugar coming illegally.” Also we are suffering huge losses. A few months ago we sold sugar worth 10 crore rupees daily. Now it is coming down to crores. Because we have to pay duty (government revenue) like 38 taka per kg of sugar. No duty is payable on smuggled sugar.’
He said, ‘The quality of refined sugar in our country is also good. But the quality of sugar coming from India by evading customs duty is not good. But these stolen sugars in the market are 30-40 taka less per kg than native sugar. In this, a class of businessmen have entered into the business of stolen sugar.’
He said, ‘Not only Abdul Monem, but all sugar mills have reduced sales now. Refined sugar stocks are increasing in all factories. The market price is falling due to this. Moreover, new LCOs (letters of credit) have decreased. A crisis may arise in the country if the regular LC reduction and supply of smuggled sugar is stopped.
While the price of smuggled Indian sugar is low at wholesale, it has not had much effect on retail. That is, consumers are not getting any benefit. On the contrary, consumers are cheating.
Consumers’ organization Consumer Association of Bangladesh (CAB) Chittagong divisional president SM Najer Hossain told Jago News, ‘Now our country’s market has been occupied by Indian stolen sugar. Apart from sugar, many other products are being smuggled. Those who are in charge at the border, they are allowing these sugars to enter. Even if not, the contraband could not have taken over the market like legitimate goods. For this reason, those in charge at the border should take responsibility for this. Although there are occasional attempts to evade responsibility, those involved in smuggling remain elusive.’
He said, ‘Despite cheap sugar being smuggled, people have to buy it at higher prices as before. On the one hand, the government is losing revenue, on the other hand, the consumers are suffering. It is necessary to stop these smuggled sugar business as soon as possible.
Although there are allegations of market manipulation of black market sugar, the officials of the National Directorate of Consumer Rights Protection do not find it. In this regard, Deputy Director of Chittagong Division of the Directorate, Faiz Ullah told Jago News, ‘We have also received complaints of Indian sugar being smuggled into the market. But we didn’t find any stolen sugar through surveillance. If the traders give us correct information in this regard, then we will take action against the black marketers.’
MDIH/ASA/ASM
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