Monday, 23 February 2015 00:00
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Reuters: Bangladesh Sugar and Food Industries Corp has issued an international tender to export 75,000 tons of sugar to the European Union to tap high state stocks.
The tender will close on 10 March, Harun Mia, Chief Purchasing Officer of the State agency, said on Thursday.
The State agency typically imports white sugar to build its reserves, but a bumper output and high stocks allowed it to export.
The sugar, obtained from locally produced cane, will be exported to EU countries under a preferential quota for the least-developed countries.
In October, the agency cancelled its first international tender since 2012, to export 25,000 tons 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 difficult to sell the sweetener, as private refiners are offering the same price but with incentives such as free delivery.
In April, Bangladesh raised the import duties on raw sugar by a third and on refined sugar by half to discourage imports amid a drop in local prices due to already ample local supplies.
Private refiners in Bangladesh imported around two million tons of raw sugar in the fiscal year that ended in June 2014, up from 1.37 million tons the previous fiscal year.
Bangladesh depends on imported raw sugar to meet annual demand of 1.4 million-1.5 million tons 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 three million tons 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.
