Consumers grapple with commodity prices as Ramadan begins

Shafiqul Islam, a private sector employee, braved the crowds at Karwan Bazar's bustling kitchen market on Sunday, two days before the start of Ramadan. He went there to purchase some Ramadan essentials at a lower price compared to his neighbourhood stores in Banglamotor.

His efforts paid off. He managed to purchase onions for Tk90 per kg, which is selling at Tk100 in the grocery stores near his home. He managed to save Tk5-Tk10 per kg on various items, including chickpeas, pulses, ginger, and chicken.

"With prices skyrocketing, saving even a few taka per kilo makes a significant difference for people like me with limited income," Shafiqul said. "That is why I made the trip to Karwan Bazar."

Shafiqul's experience reflects the struggle of many low and limited-income earners as Ramadan approaches. They are facing price hikes of 4% to a staggering 150% on eight essential items – onions, chickpeas, sugar, pulses, dates, beef, garlic, and potatoes – this year compared to last Ramadan.

Despite government efforts like subsidised product sales through the Trading Corporation of Bangladesh (TCB), market monitoring, tax breaks on Ramadan essentials imports, and initiatives offering discounted meat, milk, eggs, and fish, consumers still face an uphill battle.

According to TCB's market analysis and data from various retail and wholesale markets in Dhaka, spending on onions has increased by 150%, on chickpeas by 22%, on sugar by 21%, on pulses by 10%, on loose dates by 7%, on beef by 4%, on garlic by 38%, and on potatoes by 75% compared to last Ramadan.

Adding to the Ramadan shopping woes, prices of eggs, cooking oil, and broiler chicken have also surged. Broiler chicken, in particular, has seen a steep rise in recent days, jumping from Tk210 to Tk230 per kg in just a week. This follows a similar trend from last Ramadan, when prices hovered abnormally high between Tk230 and Tk250 per kg.

While there has been a slight dip in egg prices in the past week, from Tk47 to Tk45 for four pieces, market observers say it is still a cause for concern for consumers.

Suman Howladar, president of the Bangladesh Poultry Association, told TBS, "The price is rising due to extortion during transportation and the additional profit taken by middlemen before Ramadan. Increased demand during this period also puts pressure on the market."

Before Ramadan, beef prices have risen from Tk750 per kg to Tk780-Tk800 per kg. During last Ramadan, loose sugar was priced at Tk120 per kg. Despite duty exemption on sugar imports this time, the price stands at Tk145 per kg. Meanwhile, the price of soybean oil has decreased. It was Tk185 per litre last year and is now selling at Tk163.

State Minister for Commerce Ahsanul Islam Titu acknowledged consumer challenges with commodity prices at an event on 10 March. "The government's current priority is market regulation," he said. However, the state minister asserted that despite high prices for some items, there is no instability in the market.

On the same day, AHM Shafikuzzaman, director general of the Directorate of National Consumer Rights Protection, announced plans to officially set the price of dates.

However, the price of dates has spiralled out of control despite the government's efforts, including duty reductions. Dates that were priced at Tk90-Tk110 per kg in the wholesale market in last Ramadan are now being sold at Tk140-Tk150, while they reach Tk300 per kg in the retail market.

Additionally, dates priced at Tk200 per kg in the wholesale market are now being sold at Tk480, and those priced between Tk300-Tk350 are reaching Tk600 per kg.

During Ramadan, there is a demand for 40,000 to 50,000 tonnes of dates in the country. Additionally, there is a demand for around 3 lakh tonnes of sugar during the month, which is around double compared to other months. The demand for other essential products also rises during this period, leading to a sharp surge in prices.

Golam Rahman, president of the Consumer Association of Bangladesh (CAB), said, "While the government has taken numerous steps, it remains to be seen how effectively they impact the market and whether they can help in controlling product prices. Increasing product supply is crucial."

He added, "If TCB could import onions and distribute them alongside their products, it would have helped stabilise the onion market. However, there has been no such initiative."

Vegetable market unstable in Chattogram

The prices of eggplant, cucumber, lemon, green pepper, carrot, and coriander leaves have almost doubled in different markets in the port city before Ramadan.

Buyers say that sellers have raised the prices of all necessary raw materials before Ramadan. However, wholesale and retail traders claim that due to increased demand around Ramadan, the prices of these products have increased at all stages from the farm to the market.

In almost all the kitchen markets of Chattogram, eggplant was selling at Tk70-Tk80 per kg, cucumber at Tk100-Tk120, green chilli at Tk100-Tk120, carrot at Tk80-Tk100, coriander leaves at Tk160-Tk200 per kg, and lemons at Tk150-Tk180 per dozen.

However, two days ago, among these products, eggplant was selling at Tk30-Tk50 per kg, cucumber at Tk40-Tk50 per kg, green chilli at Tk40-Tk60, carrot at Tk25-Tk40, coriander leaves at Tk40-Tk80 per kg, and lemons at Tk60-Tk120 per dozen.