Home ›› 30 Dec 2022 ›› Front
Country’s people, especially low-income ones, were suffering a lot throughout this year due to an increase in essentials’ prices in the commodity market following Russia-Ukraine war, fuel price hike in the global market and dollar crisis.
The incomes of low and middle-income people involved in the private sector have not kept pace with soaring prices of essentials.
Prices of essentials, including rice, pulses, oil, sugar, flour and meat, climbed up to 59 per cent this calendar year. Sugar, egg and wheat markets became the focus several times round the year.
Although many brand companies have been sued and raided for unethically raising the prices of certain products in the market, it has not put much effect on the market. At the same time, the government has allowed large imports of rice to help reduce its prices.
According to market analysts, the government has not yet stepped up monitoring to keep the prices stable. Many people’s salaries have not returned to their previous level after the corona crisis. However, many countries across the world were seeing the price hike in goods throughout the year.
According to the survey findings released by the United Nations Food and Agriculture Organisation (FAO) on May 30, 18 per cent of the country’s people were under pressure due to price hike six months ago, but it increased to 29 per cent later.
The poor people in Barishal, Rajshahi and Dhaka divisions as well as Barind areas were worst sufferers, said the survey carried out by FAO on the effects of the coronavirus pandemic on the people of Bangladesh and the commodity price situation. FAO in its survey said due to the Covid-19 pandemic, the income of a large number of people in the country has decreased. They also suffer from health problems. As the corona situation improved, they were turning around. However, rising commodity prices have posed a new threat.
Even though the government has recently claimed inflation has dropped, analysts show reluctance to accept it. Inflation was a hot topic throughout the year (2022). In the first week of last August, the prices of all essentials went up due to an increase in fuel prices.
According to Bangladesh Bureau of Statics (BBS), the price of food in Bangladesh increased 8.14 per cent in November 2022 compared to the same month in the previous year. It was 8.91 per cent in October this year.
Earlier, inflation was 9.52 per cent in August, the highest in 11 years and 3 months. Later, in the month of September, inflation came down to 9.10 per cent. Before this, the highest inflation rate was 10.20 per cent in May 2011. Inflation has never been above 9 per cent since May 2011.
SM Nazer Hossain, Vice-President of Consumer Association of Bangladesh (CAB) said, “The entire year saw volatility in commodity prices.
Many people have adjusted their spending by reducing their consumption due to an abnormal rise in essential prices. Besides, consumers always have to be in fear, when the price of a product increases, an artificial crisis will be created and a product will disappear from the market. Earlier, such situation was seen only during Ramadan, but this year it has been like this all the time.”
The pretexts on which traders raised the prices of goods were not always realistic. For example, commodity prices increased during dollar crisis but commodity prices did not decrease when dollar crisis subsided, he added.
Government monitoring over the year was also deficient, not as much monitoring as needed to keep the market stable. For example, the prices of edible oil increased before the announcement and arrived in the market, but while the price has been reduced, the reduced prices have not been released for weeks.
Prices of essentials
According to the kitchen market and CAB data, despite own production the price of rice, the main staple food of the country, increased up to 19 per cent this year. The fine rice is being sold on an average at Tk 128 per kg in city’s retail kitchen market last week. One year ago, average price of this variety of rice was at Tk 108 per kg. The price of medium variety rice which rose by 11 percent in last one year is being sold at Tk 78 per kg last week and it was at Tk 70 per kg in December last year.
Along with rice, the price of flour has increased putting people under great pressure. The prices of both the products in the Bangladesh market hit an all-time high. Earlier, when the price of rice increased, people used to choose flour as an alternative. This year there is no chance.
This year the price of flour, the second staple food of the country, went up by 59 per cent. In retail market, atta is being sold at Tk 67 per kg, it was at Tk 42 per kg at the beginning of this year while maida is being sold at Tk 77 per kg, it was at Tk 53 per kg.
Edible oil and sugar prices have broken all-time records this year. Again, the companies created an artificial crisis by stopping the supply with intent to increase the prices. The government has also repeatedly fixed prices, but most of the time it has not been effective. The price of sugar had increased by 47 per cent to Tk 115 per kg. It was Tk Tk 78 per kg at the end of 2021.
Loose soybean oil price increased by 15 per cent from Tk 158 to Tk 180 per litre while bottled soybean oil is being sold at Tk 190 per litre, it was at Tk 165 per litre at the end of 2021. The prices of lentil soared by 13 per cent from Tk 111 per kg to Tk 125 per kg.
This year the egg market became the focus. In the month of August, the price of eggs hit a record high of Tk 50 per four pieces. It now came down to Tk 40. However, due to the sudden increase in prices, the low income people suffered a lot.
Powdered milk increased by 29 per cent from Tk 700 per kg to Tk 904 per kg.
Vegetable prices were also high throughout the year till November last. The price of beef has increased to Tk 700 per kg from Tk 600.
Rising prices in OMS goods
Sufferings of low-income people mounted due to an increase in the prices of products being sold at subsidized rates this year.
The government raised the prices of almost all essentials, including rice, flour, lentil, sugar by Tk 5-6 per kg. At the end of 2021, the price of OMS rice was Tk10 per kg, it increased by Tk5 per kg in last June. After few months, the government increased the price of OMS flour by Tk6 per kg from Tk 18 per kg to Tk 24 per kg in last November. In December, the prices of lentil and sugar shot up by Tk 5 per kg.
