The food item market in Bangladesh, which is mostly dependent on imports, has heated up since the Russia-Ukraine war began last year. Despite the increase in locally produced food product prices, this rise was relatively low.
At the beginning of 2023, a segment of dishonest businessmen pushed the rates of nearly all essential commodities up, with prices of eight items such as chili, broiler chicken, eggs, potatoes, onions, cumin, beef, and sugar hitting record high.
Unable to loosen the syndicates’ grip on kitchen markets, the government was forced to open the door to imports of many goods. To regulate prices, the sale of products at subsidised prices had to be increased as well.
Along with oil, sugar and pulses – which went on sale earlier this year, the Corporation of Bangladesh (TCB) began selling subsidised rice, potatoes and onions as well.
Eggs
Farm eggs fulfill a large part of low-income people’s nutrition needs. Its price hit the record average retail price of Tk 170 per dozen in mid-August this year.
Low income segment of the population became the most affected by this price rise, as they depend on eggs to meet their daily protein needs, mostly because of the prohibitively high fish and meat prices.
Wholesale traders and farmers blamed each other for the increase in egg prices. The government finally had to allow the import of eggs to rein in prices. Egg prices started to come down after Bangladesh began importing the food item from neighbouring country India.
When the government fixed the maximum retail price of each egg at Tk 12, prices returned to normal levels.
Chicken
Broiler chicken prices hit record highs at the start of the year. Low-income people who could not afford beef or mutton depended on broiler chickens.
In the middle of last March, the price of broiler chickens exceeded all records to Tk 280 – Tk 290 per kg, it was at Tk 150 – Tk 160 per kg one and a half months ago. It was even less, Tk 140 – Tk 150 per kg last year, at the same time.
Retailers said broiler chickens have never sold at such a premium in recent years. The price of broiler chicken broke all previous records.
Traders and farmers blamed the increase in production costs, triggered by a rise in the price of fuel oil, gas and other commodities. The abnormal rise in the price of feed also had a significant impact.
On the other hand, marginal farmers blamed syndicates of corporate companies for the price hike.
Chili
At the beginning of July, green chili prices suddenly started to increase. At one stage, the price of green chili rose to Tk 700 per kg in Dhaka markets, which was at Tk 150 – Tk 200 per kg previously.
Under such circumstances, the government allowed the import of green chilies and after Eid-ul-Adha, when import started, prices came down.
A market data review of the last four years shows that green chili prices stood between Tk 150 and Tk 250 per kg during the July-August period. A couple of times somewhere in the country, the price of a kg rose to Tk 300 or Tk 400, but the increase did not last for long.
Onion
After India decided to stop onion export on December 8, the price of old domestic and imported onion in the country's market increased overnight atTk50-80 per kg. Onion which is sold at Tk 100 - Tk 120 at retailers one day ago, it was sold at Tk 150 - Tk 200 per kg.
Although, at that time the onion produced in the country started coming to the market. As a result, there was no danger of onion shortage. Despite that, the price of onion increased by 220-260 taka in a week after December 8.
The price of onion came down after taking various initiatives such as conducting mobile courts in the wholesale market, increasing the supply of new onions through the Ministry of Agriculture and selling onions through TCB.
Potato
Normally, at the end of the season every year, the price of potatoes increases slightly, but it does usually not exceed Tk 35 – Tk 40 per kg. When the new season potatoes come in the market, the price drops again to Tk 25 – Tk 30.
The price of potatoes was within Tk 50 per kg at the end of the season last year. But a record has been set this year in potato prices. Even though there is enough production according to the government, the price of potatoes reached close to Tk 100 per kg last October.
In the last 10 days of October, potatoes were sold at the retail level for Tk 80 – Tk 100 per kg in different parts of the country. When the market became disorderly, the government first fixed the price of potatoes at Tk 36 per kg.
As this did not work, the government later allowed the import of potatoes from India.
Cumin
A new record was created with a sudden increase in the price of cumin before Eid-al-Adha in June this year. The price of this product, which is essential for Eid al-Adha, had increased by Tk 552 per kg or 135 per cent compared to the previous year.
Last year (2022) on July 18, the price of cumin was Tk 408 per kg but at the end of June this year (2023), that cumin was sold for Tk 960 per kg.
According to Karwan Bazar spice shop owners, the price of cumin was Tk 403 per kg in May last year. On February 5 this year, the price of cumin jumped to Tk 600 per kg, and in April it hit nearly Tk 700.
Beef
Last April, before Eid-ul-Fitr, the price of beef was increased by Tk 50 to Tk 800 per kg within one day. Although the price has been increased taking advantage of the increased demand of Eid, the price had not decreased till November.
Low and middle income people lose the purchasing power of meat due to increased prices. Traders were forced to bring down the price of meat to Tk 650 in December.
Apart from the key food items such as green chili, many products such as sugar and rice were sold at record high prices throughout 2023.
