Iran conflict triggers hikes in essential goods at Khatunganj wholesale market

The ongoing US-Israel war on Iran has caused sudden price changes in Chattogram's largest wholesale food market, Khatunganj.

Traders cite uncertainty in international markets and possible fuel price hikes. 

Market sources, however, say some traders are using the situation to raise prices on goods already purchased. Others are reportedly hoarding products, limiting sales, and adding pressure to the market.

Field reports show that from the night of last Saturday (28 February), prices of palm oil, soybean oil, sugar, and wheat began to fluctuate. Within hours, some prices rose sharply. 

The next day, when people assumed the conflict might not last long, prices slightly declined. Yet most items are still trading higher than before the conflict.

By the afternoon of 28 February, refined palm oil per maund (37.32 kg) was 5,900 taka. After news of the Iran attack spread in the evening, it rose to Tk6,000. 

The next day, it slightly dropped but is now trading between Tk6,000 and Tk6,020. Wheat prices increased by Tk150 to Tk1,300 per maund.

Soybean oil per maund rose by Tk120 to Tk7,180. Sugar prices increased by Tk70-80, now at Tk3,470–3,480 per maund. Prices of imported pulses and dry foods are also rising, despite a slight decline during mid-Ramadan.

Several traders said sales usually slow during mid-Ramadan, but demand for dry foods and sweets is rising ahead of Eid. Fears that prices could rise further due to the conflict have created market instability.

Md Mohiuddin, general secretary of Chaktai-Khatunganj Aratdar Samiti, told The Business Standard that while some items' prices have risen, most remain within normal ranges. He warned that if the conflict continues, supply chains could be affected, raising prices of all goods.

Consumer rights activists said some traders are exploiting the situation. 

SM Nazer Hossain, vice president of the Consumers Association of Bangladesh, said the conflict is being used as an excuse. 

He added that transport costs have not yet caused a sudden price impact.

"Authorities have not taken action yet. Even with a new government, ministries have not issued directives to monitor the situation." Nazer urged stricter government intervention and cautioned against panic.

Chattogram Customs data show that in the first eight months of the fiscal year (July–February), 1.038 million tonnes of palm oil and 463,000 tonnes of crude soybean oil were imported. Refined sugar cleared was 269,000 tonnes, and raw sugar 107,000 tonnes.