Different measures, including government action, market raids, duty reduction and announcements of increasing imports, were implemented ahead of the holy month of Ramadan, but the price of essential commodities are yet to cool down.
In some cases, the prices of a number of essential commodities have actually gone up. These circumstances are creating an increasing amount of stress on average consumers.
Traders said as the Ramadan shopping pressure increases, expectations of a drop in commodity prices are diminishing, and fears of further hikes are rising.
In the past week, prices of many commodities that increase demand during Ramadan, including sugar, dates, onions, meat and pulses, have gone up yet again. Even after announcing a cut in the price of edible oil, it may take another 4-5 days to reach the market, suppliers said.
According to the Trading Corporation of Bangladesh (TCB), the prices of 15 essential commodities have fluctuated in the last week. Out of which, the prices of ten commodities have increased.
The list of essential commodities that witnessed a price hike also includes fine rice and pulses.
According to the Department of Agricultural Marketing (DAM), another government agency, out of a total of 44 daily commodities, the prices of 23 products have increased year-on-year by 3.16 per cent to 228 per cent.
On the contrary, prices of only 17 products fell by 2 per cent - 51 per cent in the same period.
Market analysts said due to different reasons, people's income growth has stopped. The pressure of increased prices of daily commodities is causing distress to people. At a time like this, the prices of commodities are rising further as Ramadan is just around the corner.
The markets are yet to reflect the government's promise to reduce prices.
On February 8, the National Board of Revenue (NBR) issued a notification reducing various duty and tax rates on imports of rice, soybean and palm oil, sugar and dates.
An analysis by the Bangladesh Trade and Tariff Commission (BTTC) show that the import cost of crude soybean oil is expected to decrease by Tk 5 per litre, palm oil by around Tk 4 and a half, sugar by Tk55 per kg, and dates by Tk 13 – Tk 33 per kg due to reduction in customs duties.
On Thursday, it was found that the price of fine and medium quality rice has increased by Tk 1 – Tk 2 per kg in the markets across the capital. The price of sugar has increased by Tk 4 – Tk 5 per kg, the price of some types of pulses, including lentil and khesari, rose by up to Tk 10 per kg.
According to market data, the price of relatively high value dates has increased by Tk100-200 per kg in the last one week due to increased demand, and increased by Tk200-300 per kg in one month.
The price of soybean oil has been reduced by Tk 10 from March 1, but the new supply is not yet in the market, traders say.
Apart from this, the prices of spice products such as onion and garlic have increased by Tk 5 – Tk 10 per kg. Although the price of chickpea has not increased in the last week, buyers are buying chickpeas for Tk 15 – Tk 20 more per kg compared to last year.
Md Shipon, the owner of “Allah’r Dan” grocery shop in Segunbagicha Bazaar, said, “Volatility has increased in the commodity market for the last few days, because people have started shopping for Ramadan.
“Although there is no panic buying like before, demand has increased as more people are coming to the market to buy products.”
He added, “Along with the increase in sales, the prices of some products also increased. However, no products have witnessed a decrease in prices. The price of sugar has increased by Tk 200 per bag (50 kg) in the last two weeks. Apart from this, the price of onion has increased by Tk 5 per kg, and the price of pulses has increased by Tk 2 – Tk 3 per kg.
Zia Uddin, an edible oil dealer in Shantinagar market, said, “Companies have announced to reduce the price of edible oil, but the new supply will take some time to arrive in the market. Because banks are closed on Friday and Saturday, it is not possible to do delivery orders (DO).
“By depositing the money in the bank on Sunday and submitting the DO letter, the new supply of edible oil will be available from the mill on Monday or Tuesday. After that we will go for distribution.”
Sugar is being sold at Tk 140 – Tk 145 per kg in markets across the capital, which was Tk 135 –Tk 140 per kg a week ago.
Two weeks ago, sugar could be bought at Tk 130 – Tk 135 per kg. Local onions are being sold for Tk 120 – Tk 125 per kg on Thursday, it was at Tk 115 – Tk 120 per kg a week ago.
Fine quality dates now cost Tk 800 – Tk 1,800 per kg. Beef is being sold for Tk 750 per kg, which was Tk 700 per kg a week ago. Chickpeas are being sold for Tk 105 – Tk 110 per kg, which was Tk 95 – Tk 100 two months ago.
Last year, chickpeas were sold for Tk 90 – Tk 95 per kg.
Soybean oil was sold for Tk 107 – Tk 172 per litre on Thursday. When the new supply of edible oil arrives in the market next week, soybean oil will be available for Tk 160 – Tk 162 a litre.
