Importers hike commodity prices on Russia-Ukraine conflict pretext
Importers increased domestic edible oil prices with rising prices in international market
No sooner had the Russian invasion of Ukraine begun, the country's edible consumer goods market became volatile again.
In just one day, the prices of edible oils in Khatunganj, the country's biggest wholesale market for edible consumer goods, have gone up Tk500-700 per maund (40.90 litres).
Although imports and supplies are adequate, importers have raised the prices of edible oils in the domestic market on the pretext of increasing prices in the international market due to the conflict in Ukraine.
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According to Khatunganj edible oil traders , the price of soybean oil has increased Tk700 per maund in a day, rising to Tk7,000 on Thursday.
Similarly, the wholesale price of palm oil has gone up Tk700 per maund in a day, increasing to Tk6,000 yesterday. Palm super oil was Tk6,300 yesterday, now increasing Tk500 per maund in a day.
Not only edible oil, but the price of most edible consumer goods also rose sharply since news of the conflict in Ukraine hit the market.
On Thursday, the wholesale price of wheat went up by Tk100, increasing to Tk1,160 per maund, while the price per maund of sugar increased to Tk2,680 from Tk2,640.
In just one day, the price of white peas also went up by about Tk150, increasing to Tk1,680 per maund.
Similarly, the price per maund of lentil, imported from Canada and Australia, has gone up Tk115 per maund, increasing to Tk3,280 in a day on Thursday.
Abdur Razzak, proprietor of Ismail Trading and anedible oils trader, said prices for most edible consumer goods were stable till Wednesday. But they started increasing on Thursday morning on news of the Russian invasion of Ukraine. The price of edible oil has risen the most.
Alamgir Parvez, an importer, said the ongoing Covid pandemic led to a global manufacturing crisis which resulted in a sharp rise in consumer prices. The market for consumer goods has been volatile for a long time due to rising fuel prices and higher freight rates. Moreover, the value of the dollar has also increased. Due to the Russia-Ukraine crisis, the booking price of various products has increased in the international market in one day, making the consumer goods market volatile again.
Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industry, said the price of consumer goods has become volatile in the domestic and international markets for various reasons. The market is likely to become more volatile around the upcoming Ramadan. Therefore, in order to keep prices tolerable for edible consumer goods during Ramadan, VAT and tax on various daily necessities should be reduced, subsidies should be provided, and the sale of goods through TCB should be increased, while edible oil imports should be opened to all to create a competitive market.
