Home ›› 17 Jun 2023 ›› Front
The wholesale market for imported spices in Khatunganj-Asadganj in Chattogram has fallen under the control of a profit-monger group, leading to significant price inflation, with prices inflated three to seven times higher than the import costs.
Utilising the excuse of opening a lesser number of letters of credit by the banks amid a global crisis of the dollar and the increased demand for spices ahead of Eid-ul-Azha, this clique continues to hike the prices.
At Khatunganj-Asadganj, the largest wholesale hub for commodities in the country, cumin is being sold at Tk 780 per kg, while its import cost is only Tk 305 per kg. Similarly, cloves are being sold at Tk 1,430 per kg, whereas their import costs range between Tk 185 and Tk 666 per kg.
Wholesalers have reported that just a month ago, cumin was being sold at over Tk 800 per kg, despite its import costs ranging between Tk 305 and Tk 311 per kg. Similarly, the prices of cloves remain higher than their import costs. Currently, they are priced at Tk 1,420 to Tk 1,430 per kg in Khatunganj, while their import costs from India, Sri Lanka, and Indonesia range from Tk 185 to Tk 666 per kg, including duty.
Prices of other spices have also been inflated. Cardamom is being sold at Tk 1,430 to Tk 1,480 per kg, mace at Tk 3,000, cinnamon imported from India, China, and Vietnam at Tk 330 to Tk 380 per kg, black pepper at Tk 630, white pepper at Tk 900, nutmeg at Tk 675 to Tk 690, turmeric at Tk 125, dry chilli at Tk 298, and coriander at Tk 190 per kg.
Data from the National Board of Revenue (NBR) reveals the import of significant quantities of spices through eight land and sea ports. The Chittagong Port serves as the primary entry point for spice imports. Additionally, spices are also imported through land ports such as Benapole, Hili, Sona Masjid, and Burimari.
Between January 1 and May 31 of this year, a total of 141,63,129 kg of cumin was imported in 108 consignments, with import costs ranging between Tk 305 and Tk 311 per kg, including duty. Similarly, 79,72,695 kg of cinnamon was imported in 84 consignments, with an import cost of Tk 168 per kg.
During the same period, 8,83,817 kg of black pepper was imported in 36 consignments, with import costs including duty ranging between Tk 502 and Tk 594 per kg. Additionally, 1,40,410 kg of nutmeg was imported in 23 consignments, with import costs ranging from Tk 305 to Tk 415 per kg, including duty.
A total of 8,19,570 kg of cloves were imported in 45 consignments, with an average import cost of Tk 230 per kg. However, depending on the shipments, the import costs of cloves ranged from Tk 185 to Tk 666 per kg.
Furthermore, 23,61,151 kg of cardamom arrived in the country in 88 consignments during the same period, with import costs ranging between Tk 1,047 and Tk 1,270 per kg. Despite claims by wholesalers in Khatunganj-Asadganj that spice prices are decreasing, a visit to the market reveals no conformity between market prices and import costs.
Liton Das, the owner of M/s Unique Enterprise which imports spices, stated that the spice market is experiencing a downward trend due to a decrease in the number of customers. He mentioned that prices of spices have slightly decreased compared to the previous month. However, he acknowledged that prices have remained higher this year compared to the previous year due to the dollar crisis, which has resulted in a reduced number of opening letters of credit (LCs) and higher import costs.
SM Nazer Hossain, vice president of the Consumer Association of Bangladesh (CAB) in Chattogram Division, called for strict monitoring of the spice market ahead of Eid-ul-Azha. He expressed concerns that due to the government’s lack of stringent monitoring, importers are able to extract substantial profits from the people. Hossain further noted that the limited number of spice importers gives them the ability to control prices as they desire.
