Budget steps help stabilize prices of essential commodities

Prices of several essential commodities, including loose soybean oil, local onions, and broiler chicken, have declined in the capital's retail markets, reflecting the initial impact of the government's duty and tax relief measures announced in the national budget for FY2026-27.

According to the latest daily market price report of the Trading Corporation of Bangladesh (TCB), prices of a number of kitchen essentials either declined or remained stable over the past week, indicating a positive market response to the government's fiscal and supply-side initiatives.

The TCB report, compiled from retail markets in Sipahibag, Mirpur-6, Mohammadpur Town Hall, New Market, Rampura, and Mohakhali, showed that local onion prices fell to Tk35-45 per kilogram, while loose soybean oil declined to Tk186-192 per liter.

Broiler chicken prices also dropped to Tk160-180 per kg, imported garlic to Tk120-210 per kg, local ginger to Tk130-160 per kg, and cucumber to Tk50-70 per kg.

However, prices of a few items registered slight increases. Local garlic was selling at Tk90-140 per kg, green chilies at Tk80-140 per kg, and eggplant (brinjal) at Tk70-100 per kg.

Prices of most other daily essentials remained stable. Fine rice (Nazir/Miniket) was selling at Tk72-85 per kg, medium rice (Paijam/Atash) at Tk55-68 per kg, and coarse rice at Tk50-60 per kg.

Small lentils were priced at Tk150-160 per kg and large lentils at Tk90-105 per kg. Beef was retailing at Tk780-850 per kg, mutton at Tk1,200-1,350 per kg, sugar at Tk105-110 per kg, and iodized salt at Tk38-42 per kg.

Officials and market analysts said the government's budgetary measures, including the withdrawal of source tax on the import of around 60 essential commodities and reductions in advance tax on several food and agricultural products, have started easing import costs and strengthening market confidence.

The tax relief covers a wide range of consumer essentials, including rice, wheat, edible oil, onions, garlic, ginger, sugar, salt, fish, poultry products, potatoes, and seeds, with the objective of ensuring adequate supply and containing inflationary pressure.

The FY2026-27 budget also introduced duty and VAT concessions on spices, dates, baby food, fertilizers, livestock feed, pesticides, and other agricultural inputs to reduce production and distribution costs across the supply chain.

State Minister for Textiles and Jute Md Shariful Alam recently said the national budget for FY2026-27 had not triggered any increase in the prices of essential commodities, attributing the stability to the government's consumer-friendly fiscal measures.

"The budget, amounting to Tk9.38 lakh crore, was designed with public welfare in mind and includes measures aimed at easing inflationary pressure on ordinary people," he said.

Visits to kitchen markets in the capital found that traders were maintaining stable prices for most commodities, attributing the situation to adequate supplies and expectations of lower import costs once the new fiscal measures are fully implemented.

Talking to BSS, Rafiqul Islam, an employee of a private organization, said the stable prices of daily essentials had brought relief to consumers.

"We hope the government will continue its market monitoring so that prices remain affordable," he said.

Economists said tax reductions, together with uninterrupted imports, efficient distribution, and effective market monitoring, would be necessary to ensure consumers receive the full benefit of the government's fiscal incentives.

They also underscored the importance of preventing hoarding and artificial shortages through regular market supervision.

Chairman of the Department of Organization Strategy and Leadership (OSL) at Dhaka University Md Rashedur Rahman said that the government's duty and tax rationalization measures would help ease pressure on essential commodity prices if the supply chain remains efficient.

He said lower import costs alone would not automatically translate into lower retail prices unless the benefits are passed on through wholesalers and retailers to consumers.

"Effective market monitoring is essential to prevent any attempt to create artificial shortages or manipulate prices. At the same time, uninterrupted imports and smooth distribution must be ensured so that adequate supplies remain available in the market," he said.

Rashedur Rahman added that if these supportive measures are implemented consistently, the fiscal initiatives announced in the FY2026-27 budget are expected to contribute to greater price stability and improve consumer welfare in the coming months.

Officials concerned said the government would continue monitoring markets closely to ensure that reductions in duties and taxes are reflected at the retail level and help maintain stable prices of essential commodities throughout the fiscal year.

Analysts expressed optimism that if global commodity prices remain relatively stable and domestic supply chains continue functioning smoothly, the FY2026-27 budget measures would help contain inflation and support price stability.

They also emphasized the need for continued coordination among the ministries of finance, commerce, and food to sustain the positive trend.