Broiler chicken price jumps again, soars by Tk20 in a week

Mohammad Fazal had purchased a broiler chicken at Tk200 per kilogramme from a kitchen market at Mogbazar's Noyatola. Only last week it had been Tk180 per kg.

He tried to haggle at first, but it was a lost cause.

"The prices of various commodities are increasing every week. It seems like no one is monitoring the market," Fazal said. 

This correspondent visited several kitchen markets of Karwan Bazar and Moghbazar areas and noticed the same situation, with the exception being an even higher price for broiler chicken. 

Although those were selling for Tk180-185 per kg last week, prices had shot up to Tk200-205. 

Vendors chalked down the higher prices to a fall in supply.

"Today, I bought at a wholesale rate of Tk190 per kg, which was Tk169 last week," said Mohammad Sohail, a shopkeeper at the Bhai Bandhu Desi Murgi House at Karwan Bazar.

Another seller, Mohammad Iqbal, mentioned that the supply had decreased due to the rain.

"Moreover, the price of chicks has increased, which is why broiler chicken is being sold at a price of Tk20 higher than last week," Iqbal further added.

"If the prices of one-day-old chicks and poultry feed do not decrease, the prices of broiler chicken will increase further," Bangladesh Poultry Association (BPA) President Sumon Hawladar said.

He highlighted a significant hike in the price of one-day-old chicks, which surged from Tk35 to Tk52 within the past two months.

Blaming corporate entities for controlling the market through syndicates and engaging in contract farming, the BPA president said, "These entities dictate the prices, and farmers have no choice but to sell chickens at the rates they specify."

Sumon said the government needs to regulate the prices by importing chicks and poultry feed.

"By doing so, production costs will decrease, leading to lower chicken prices in the market," he added.

He also highlighted rural farmers are selling chickens at a loss, "In rural areas, chickens are being sold at Tk155 per kg. However, the production cost per kilogram is Tk170-175."

When asked why rural farmers are selling chickens at a loss, Sumon said chickens will sell for Tk40 per kg more in the market than what they are sold for in rural areas.

"Rural farmers cannot get a higher price than this in the market because of certain syndicates," he said.

Earlier in August, the price of broiler chicken in the markets of the capital had soared by Tk25-30 a kg in the span of a week, reaching Tk185-190 a kg.

In that month, the Trading Corporation of Bangladesh had estimated that the price of broiler eggs increased by about 10% and chicken by more than 12% in a month.

The surge came after the Ministry of Fisheries and Livestock approved the production cost of broiler chickens at Tk170-175 per kg, which was around Tk140 a year ago. 

Soon after the cost of production was hiked, broiler chicken prices jumped from Tk160 per kg to Tk180-Tk190.

Industry insiders said the prices of eggs and chicken were low during Eid al-Adha because of low demand. Many had to sell these products at prices below the cost of production.

Around 40,000 layer farms and more than 30,000 broiler farms have been permanently closed in the last three years, they said. Due to this, production has decreased compared to demand.

Demand has normalised but production costs remain high, they said.

The extreme heat and heavy load shedding outside Dhaka also increased the mortality rate of chickens, heavily disrupting production.