Date prices rise ahead of Ramadan despite 15% duty cut; other essentials also edge up
Over the past 10 days, wholesale prices of dates have increased by Tk50 to Tk70 per kg, with some retail prices rising by as much as Tk100 per kg
Despite a reduction in import duties aimed at stabilising the market ahead of Ramadan, consumers are yet to see any relief in date prices.
Over the past 10 days, wholesale prices of dates have increased by Tk50 to Tk70 per kg, with some retail prices rising by as much as Tk100 per kg.
Meanwhile, prices of other Ramadan essentials have also begun climbing at the capital's key wholesale and retail hub, Karwan Bazar.
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On 24 December last year, the National Board of Revenue (NBR) reduced customs duty on date imports from 25% to 15%. In addition, advance income tax on fruit imports was cut from 10% to 5% in the previous budget.
The reduced rates will remain effective until 31 March.
The government said the move was intended to keep prices of dates and other essentials stable ahead of Ramadan, but market observations suggest otherwise.
Today (18 February), a visit to Chattogram's largest fruit wholesale market, Falmundi, revealed sharp increases across varieties to date. 'Bosta' dates, which sold at Tk147 per kg 10 days ago, are now trading at Tk220 per kg.
The popular 10kg carton of Zahidi dates, previously priced between Tk1,700 and Tk1,800, now sells for Tk2,150-Tk2,500.
A 5kg pack of Maryam dates has risen from Tk4,700 to Tk5,000. Mabroom (3kg) increased to Tk3,900 from Tk3,600, while 5kg Medjool now costs Tk5,800, up from Tk5,500. Safawi and Dabbas varieties have also become more expensive.
Ali Ahmed, a retail trader at Falmundi, said smaller sellers were struggling to cope. "If wholesale prices go up by Tk70 per kg, how can we keep retail prices low? Customers blame us," he said.
According to NBR data, nearly 47,000 tonnes of dates have been imported over the past four months. The Ministry of Commerce estimates Ramadan demand at between 60,000 and 80,000 tonnes.
Importers argue that many consignments were opened under letters of credit before the duty cut took effect, meaning they paid the higher rate. They also cite delays at Chattogram Port due to labour unrest, election holidays, demurrage charges and temporary supply shortages.
However, Mohammad Shafiul Azam Tipu, owner of SK Traders, said the duty reduction has actually prevented prices from rising further. "The market is comparatively stable because of the reduced duty. Otherwise prices would have been even higher," he claimed.
But, SM Nazrul Hossain, vice-president of the Consumers Association of Bangladesh, said the duty cut had not brought relief because of weak monitoring. "Without strict action against syndicates and hoarders, prices will not stabilise," he said.
In Dhaka's Karwan Bazar, prices of other Ramadan essentials are also climbing.
Chickpeas are selling at Tk90-Tk100 per kg, lentils at Tk95-Tk120, and sugar at around Tk105 per kg. Cucumbers and brinjals are priced at Tk100-Tk120 per kg, while lemons cost Tk80-Tk120 for four.
Green chillies are selling for Tk180-Tk240 per kg. Broiler chicken is priced at Tk190-Tk200 per kg, and eggs at Tk130-Tk160 per dozen.
Traders attribute the increases to higher wholesale prices, transport costs and pre-Ramadan stocking. Consumers say prices rise every year before Ramadan despite what they describe as adequate supply, pointing to ineffective market monitoring.
Meanwhile, the government has announced plans to sell dressed broiler chicken at Tk245 per kg, beef at Tk650 per kg, pasteurised milk at Tk80 per litre and eggs at Tk8 each during Ramadan.
The Trading Corporation of Bangladesh will also sell edible oil, sugar, lentils, chickpeas and dates through designated dealers and mobile trucks.
AHM Safiquzzaman, president of Consumer Association of Bangladesh and a former secretary, today said the government has the authority under the Essential Commodities Act of 1956 to fix prices for 23 essential goods. "But in practice, price controls are applied only to a limited number of items," he said, also questioning the effectiveness of the Competition Commission.
Analysts say stabilising food prices during Ramadan will be a major test for the new government, as rising costs continue to squeeze lower- and middle-income households.
