Ramadan staples rise by Tk3-5 per kg in Khatunganj on supply chain strains

Highlights:

• Essential goods prices rising again after months of relative stability
• Wholesale Ramadan staples increased Tk3–Tk5 per kilogram within a week
• Price hikes visible across Chattogram's Khatunganj wholesale market
• Severe cargo congestion at Chattogram port disrupting essential supplies
• Lighterage vessel shortages delaying millions of tonnes of food imports
• Consumer groups demand oversight; authorities deny justification for price rises

After several months of relative stability, the prices of daily essentials are again edging upwards, with traders pointing to delays in cargo clearance at Chattogram port and consumer groups blaming a lack of effective market oversight. 

Wholesale prices of key Ramadan items such as edible oil, sugar, chickpeas and lentils have increased by Tk3 to Tk5 per kilogram in just a week, raising concerns that retail prices could soon rise.

Market trends in Khatunganj

The impact is already visible in Chattogram's largest wholesale hub, Khatunganj. Over the past week, wholesale prices of almost all essential goods have risen. Locally produced onions are now selling at Tk35-40 per kg, up from Tk34-38 a week earlier, while Indian onions have increased by Tk3 to Tk60-65. Garlic prices have climbed by Tk3 to Tk130 per kg, and ginger, which sold at Tk100-105 two weeks ago, is now priced at Tk110-115. Chickpeas have risen by Tk5 to Tk70-75, depending on quality, while anchor lentils are selling at Tk45-48 per kg after a Tk2 increase.

At the wholesale level, sugar prices have jumped by Tk100 per maund (40kg) to Tk3,500, while palm oil is trading at Tk5,990 per maund. Prices of vermicelli, a Ramadan staple, have also increased to Tk1,950-2,000 per maund from Tk1,800-1,900 earlier.

Infograph: TBS

Lighterage vessel shortage

Behind the price pressures lies a more serious logistical bottleneck at Chattogram Port. The main congestion points are the outer anchorage and the Kutubdia channel, where more than 100 cargo vessels remain stranded. 

According to port data, as of 17 January, these ships were carrying over 4.5 million tonnes of goods, including around 1.2 million tonnes of Ramadan-related food items such as wheat, maize, soybeans, chickpeas, lentils and edible oil. More than 2,00,000 tonnes of sugar are also stuck on five vessels, while fertiliser and cement clinker shipments are similarly delayed.

Under normal conditions, a 50,000-tonne mother vessel can discharge cargo within seven to ten days using lighterage vessels to transport goods to river ports and terminals. Currently, however, acute shortages of lighterage vessels have stretched waiting times to 20-30 days.

The WTCC said demand for lighterage vessels far exceeded supply. On 13 January alone, 104 lighterage vessels were required to service 90 mother ships, but only about 50 could be allocated.

Calls for intervention

Expressing strong dissatisfaction with the current situation, SM Nazer Hossain, divisional president of the Consumers Association of Bangladesh (CAB) in Chattogram, told TBS that the lack of effective monitoring is allowing unscrupulous traders to exploit the market. 

He noted that consumer groups had been urging authorities for stricter oversight for the past two to three months, but enforcement remained weak as officials were preoccupied with election-related and protocol duties.

"Ramadan is a month of worship for people, but for dishonest traders it becomes a season of profiteering," Nazer said, warning that artificial shortages could be created if monitoring is not strengthened immediately.

The CAB leader cautioned that the situation could mirror the liquefied petroleum gas market, where supply shortages are cited despite availability at higher prices. He stressed that waiting until Ramadan to intensify enforcement would be too late, as markets typically spiral out of control by then.

However, traders offered a different perspective. Md Mohiuddin, general secretary of the Chaktai-Khatunganj Aratdar General Traders Welfare Association, said supplies are adequate and trading is normal. He argued that prices remain lower than last year and have only risen slightly after an earlier period of unusually low rates.

The Directorate of National Consumer Rights Protection in Chattogram dismissed the justification for price hikes. Assistant Director Md Anisur Rahman said stocks currently exceed demand and import costs are lower than before. "There is no logical reason for prices to rise at this moment," he said, adding that action will be taken against any trader found increasing prices unreasonably. 

Anisur also claimed that regular market monitoring is under way and will be intensified in the coming days.