Sunday, 22 March 2015 18:18
DHAKA: Bangladesh Sugar and Food Industries Corp said on Sunday it received no bids for the export of 75,000 tonnes of sugar in an international tender to the European Union, amid low global prices.
The state agency typically imports white sugar to build its reserves, but a bumper output allowed it to hold the export tender for EU countries, under a preferential quota for the least-developed countries to tap high stocks.
The tender opened this month but drew no bids as global prices are too low, said Harun Mia, the agency’s chief purchasing officer.
In October, the agency cancelled its first international tender since 2012, to export 25,000 tonnes of sugar to the European Union, as the only bid it received was below the local market.
Global sugar prices this year have been under pressure from ample supplies from the top two producers Brazil and India, with white sugar sinking to a six-year low this month.
White sugar from the government stockpile is being sold at mill gates at 37 taka ($ 0.51) a kg, almost half the cost of production. Still, the government agency has found it tough to sell the sweetener, as private refiners are offering the same price but with incentives such as free delivery.
In April, Bangladesh raised import duties on raw sugar by a third and on refined sugar by half, to discourage imports as ample domestic supplies led to a drop in prices.
Private refiners in Bangladesh imported around 2 million tonnes of raw sugar in the fiscal year that ended in June 2014, up from 1.37 million the previous fiscal year.
Bangladesh depends on imported raw sugar to meet annual demand of 1.4 million to 1.5 million tonnes of refined sugar.
In late 2012, the government allowed exports of sugar by private refiners who had been calling for overseas sales as they have more than 3 million tonnes of refining capacity.
Private refiners mostly import raw sugar from Brazil, India and Thailand and export refined sugar to East Africa and the Middle East.
Copyright Reuters, 2015
