Bangladesh proposes to reduce import duty on sugar to curb smuggling

08-Oct-2024 09:04 AM

Dhaka. Bangladesh Trade and Customs Commission (BTTC) has proposed to reduce import duty on sugar to curb smuggling from outside and to control the rise in domestic market prices. At present, the price of sugar in India is 45-50 rupees per kg, while the retail price in Bangladesh has increased to 125-180 taka per kg. Due to the huge difference in prices, Bangladeshi smugglers are getting encouragement to smuggle sugar from India. Heavy import duty is also applicable on sugar in Bangladesh, which makes its import expensive there. There is a ban on commercial export of sugar from India. Legal import of sugar in Bangladesh has fallen drastically, while the incidence of smuggling has increased a lot. In view of this, the commission has recommended the National Revenue Board to reduce import duty on sugar and increase vigilance at border posts so that the supply of sugar through smuggling can be stopped. In a report submitted to the Commerce Ministry, the Tariff Commission has said that an average of 18.43 lakh tonnes of raw sugar was imported annually in Bangladesh during the last five years, but during the financial year 2023-24, only 4.57 lakh tonnes were imported, which is much less than the normal average import. The import of refined sugar also decreased by 13 thousand tonnes.

Despite this sharp decline in imports, there is no shortage of sugar in the domestic market, which clearly shows that it is being smuggled heavily. According to the Commission's report, most of the sugar is smuggled from India because its price is very low there. The Commission has suggested reducing the import duty on sugar from the current level of 30 percent to 15 percent.