Essentials cool down in int'l market, little impact locally

Despite falling prices in the global market, prices of major essential commodities in Bangladesh have risen ahead of Ramadan. Prices of some items, however – including chickpeas and dates – have fallen. This information has emerged from a review report prepared by the commerce ministry.

The report compared price changes over the past month and over one year in both local and international markets for rice, flour, edible oil, sugar, lentils, onions, garlic, chickpeas and dates. Demand for these products rises comparatively in the Bangladeshi market during Ramadan.

This was presented at a meeting of the Task Force Committee on the review of commodity prices and market conditions, held at the commerce ministry yesterday. 

According to the report, over the past month the prices of coarse rice varieties such as Swarna and China have remained unchanged in the domestic market. However, over the past year, prices of this high-demand rice have increased by 8.57%, currently selling at Tk54 to Tk60 per kg. In contrast, prices of the same rice in the international market have fallen by 18.65% over the past year to $423 per tonne, although they rose by 4.19% over the past month.

The price of bottled soybean oil per litre in Bangladesh has increased by 1.57% over the past month and by 12.83% year-on-year. Meanwhile, the price of crude soybean oil in the international market has declined by 3.03% over the past month, though it has risen by 9.27% over the year. Over the same one-year period, palm oil prices have increased slightly in Bangladesh, while falling by 11.82% in the international market.

Prices of medium- and small-grain lentils have increased in Bangladesh over the past year, while prices of coarse lentils have declined. In the international market, however, lentil prices have dropped sharply – by 30.92% in Australia and 9.09% in India. Bangladeshi traders mainly import lentils from these two markets.

Over the past month, refined sugar prices in the international market have risen by 5%, while they increased by 1.20% in the domestic market. Over the past year, prices of sugar have declined by around 15% in both Bangladesh and the international market.

There is some good news regarding onion prices. Over the past month, onion prices in the domestic market have fallen by 18.18%, although they are still 24.14% higher than a year ago. The new onion harvest season has begun in the country, contributing to the recent price decline.

Meanwhile, the report notes that prices of ginger, garlic and chickpeas have fallen more in Bangladesh than in the international market. Demand for all three products rises during Ramadan.

Demand for dates increases significantly in Bangladesh during Ramadan, as fasting people consume dates at iftar. Over the past month, prices of this import-dependent fruit have fallen by 2.67% in the domestic market, selling at Tk180 to Tk550 per kg depending on quality. The report did not include any information on international prices for dates.

Market analysts say that weak market monitoring, trader syndicates, and depreciation of the taka against foreign currencies are the main reasons why prices of many commodities in Bangladesh are not falling despite declines in the international market.

Commenting on the issue, Consumer Association of Bangladesh (CAB) President AHM Safiquzzaman told TBS that due to malpractice by traders, Bangladeshi consumers do not benefit from falling global prices. 

"Government monitoring is weak, and even where monitoring exists, the authorities often fail to take action against traders in line with the law. Although traders cite rising dollar prices as an excuse, in reality this has not had much impact, as the dollar rate has remained relatively stable for some time," he said. 

This year's Ramadan will be more comfortable than last year: commerce adviser

Following the task force meeting yesterday, Commerce Adviser Sk Bashiruddin told journalists that prices of some commodities would decline in the coming Ramadan. He said imports of essential goods are 40% higher than last year, making this year's Ramadan more comfortable than the previous one.

He said supply, import and production data had been analysed, and the analysis showed that the Ramadan market would be better this year than last year.

He further said that at the task force meeting, traders assured the government that supplies of essential commodities would remain normal during Ramadan. Prices would stay under control, and some commodities would even become cheaper.

Referring again to the 40% increase in imports compared to last year, the adviser said that prices of essentials during Ramadan would remain within people's reach.
Commerce Secretary Mahbubur Rahman and heads of various agencies under the Ministry of Commerce were present at the meeting.

Concern over reduced soybean oil supply during Ramadan

Although the commerce adviser expressed optimism that supplies would increase during Ramadan, the report presented at the meeting warned of a possible shortage of edible oil supply this year compared to last year.

The meeting was informed that demand for edible oil during Ramadan is around 3 lakh tonnes. In November and December, a total of 3.66 lakh tonnes of edible oil were imported, including 1.08 lakh tonnes of soybean oil and 2.58 lakh tonnes of palm oil. In the same period of the previous year, imports stood at 3.72 lakh tonnes.

On the other hand, traders opened letters of credit (LCs) for importing a total of 3.92 lakh tonnes of soybean and palm oil in November and December, compared to 4.51 lakh tonnes in the same period of the previous fiscal year.

Ramadan will begin in mid-February. Edible oil imported under LCs opened in November and December will reach the market in February. As fewer LCs have been opened for imports compared to last year, it is feared that market supply will also be lower.