Essentials prices skyrocket

Vegetables on sale in Dhaka City

Jehangir Hussain

People’s woes increased as prices of gram, dates, sugar, onion, broiler chicken, beef, cooking oil,  anchor dal and other essentials became costlier as   Ramadan is approaching.

This happened though traders gave 'assurances' at a meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and at meetings of the National Directorate of Consumer Protection, that essential prices will not be increased during Ramadan.

The National Directorate of Consumer Protection has warned that the government will take action if the essential prices were increased during Ramadan. Business leaders and importers said that the prices increased due to disruption in imports caused by  dollar shortage.

This happened as traders are out earn profit.

Unless action is taken in due time by intensifying campaigns consumers would get no benefit.

But prices cannot be controlled in free market economy, said traders.

Most of the time the government fixed prices  ignoring the market, said traders.

Over the last 15 to 20 days, loose soybean and palm oil prices increased by Tk 2 per liter in the wholesale market leaving an obvious impact on the retail market.

Though the government set the price of loose palm oil at Tk 117 per litre  it is being sold at Tk 125 to Tk 130 per litre by retailers.

Similarly, loose soybean oil is being sold at Tk 172 to Tk 175 per litre though the government set its price at Tk 167 per lite.

Retailers are selling bottled soybean oil for Tk 187 per litre.

According to the Commerce Ministry, the country’s annual demand for cooking oil atands at 18 lakh to 2o lakh tonnes, including three to four lakh tons during Ramadan.

General Secretary of Bangladesh Wholesale Edible Oil Traders Association Abul Hashem said that the demand for cooking oil increases slightly during Ramadan.

Recently, cooking oil price increased at the mill level.

Usually, the demand for gram, anchor dal and powdered gram (besan) increase during Ramadan for preparing iftar.

The prices of these products have already increased. In the last one month, the price of gram has increased by Tk 10 to Tk 15 per kg.

A week ago gram was sold for Tk 85 to Tk 90 per kg, now it is sold for Tk 90 to Tk 100 depending on quality.

Prices of chickpeas and anchor dal also increased by Tk 10 per kg to Tk 70 to Tk 80 per kg.

Price of powdered gram (besan) increased to Tk 100 to Tk 105 per kg.

According to the Trading Corporation of Bangladesh (TCB) data price of gram has increased by about 6 per cent in last one month and by 23 per cent in one year.

Price of anchor dal per kg increased by about 48 per cent in one year.

Out of the annual demand of gram of 2.5 lakh tonnes, traders said 70,000 to 80,000 tonnes are needed during Ramadan.

Shafi Mahmud, President of Bangladesh Dal Traders Association, said that the traders began importing chickpeas before Ramadan.

Due to the dollar crisis, fewer Letters of Credit (LCs) were opened, said importers.

Besides, import costs increased due to rise in the value of dollar.

Naser Uddin Khan, senior vice president of the same association, said that as the price of gram, imported from Australia and Canada increased its price has risen in the domestic market.

Now, gram is also imported from India at relatively low price.

Date importers said that the country’s annual demand for dates stands at 60,000 to 70,000 tonnes,  imported from the Middle East and some African countries.

The demand for dates increases three to four times during Ramadan.

During Ramadan, 40,000 to 50,000 tonnes of dates are needed. However, due to the dollar crisis, importers opened LCs rather late this year.

Due to higher value of dollar, price of dates may increase by 25 to 30 per cent during Ramadan, said traders.

Beef is being sold at Tk 750 to Tk 780 per kg, mutton at Tk 1,100 per kg, broiler chicken at Tk 250, Sonali chicken at Tk 330 to Tk 340 per kg.

Traders increased the price of meat over the last three to four days.

In one week, local onion price  increased by Tk 5 per kg to Tk 40, imported onion to Tk 45 per kg, loose white flour price  increased by Tk 3 per kg to Tk 58 and Tk 60 per kg, and packaged flour price increased by Tk 2 to Tk 68 or Tk 70 per kg.

Four eggs are sold at Tk 43 to Tk 45, an increase by Tk 2.

Sugar price rose by Tk 5 per to Tk 120 per kg.

Average quality dates are being sold for Tk 150 to Tk 160 per kg, an increase by Tk 20 to Tk 30.

In last 20 days, price of quality dates increased by Tk 50 to Tk 150 per kg.

Higher quality dates are being sold for  Tk 700 to Tk 850 per kg.

According to TCB, price of dates increased by 20 per cent in one year.

Bangladesh Fresh Fruits Importers Association President Sirajul Islam said, there be no shortage of  dates in the market as enough LCs had been opened.

He said, “Date price has not increased in the wholesale market. But it seems that the people's purchasing power has decreased, for which sales decreased."

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