Ginger prices soar in Chattogram ahead of Eid despite higher imports

Highlights

• Ginger prices at Khatunganj wholesale market have surged from Tk100–110 per kg to Tk150–160 per kg in just one week. 
• Retail prices have hit Tk210–220 per kg.
• Traders blaming supply shortages. 
• Chattogram Customs data shows ginger imports rose 25.8% this year — from 38,547 metric tons to 62,394 metric tons over the same period last year. 
• CAB alleges syndicates are deliberately creating an artificial crisis to extract festive-season profits, calling traders' LC shortage argument "a lame excuse"
• Traders counter that prolonged losses — with ginger selling below import cost until April — deterred importers from opening new LCs, causing the current supply gap

Chattogram's Khatunganj, the country's largest wholesale market for consumer goods, has been experiencing extreme volatility, especially in ginger prices, ahead of Eid-ul-Adha due to an alleged artificial shortage created to generate excessive profits.

The price of ginger, one of the key ingredients used during Eid, has risen by Tk70 to Tk80 per kg in just one week. Traders have blamed the sudden hike on supply disruptions, claiming that importers were reluctant to open new letters of credit (LCs) after suffering prolonged losses.

However, data from Chattogram Customs shows that ginger imports have increased by around 23,847 tonnes this year compared to the previous year. As a result, consumer rights organisations have alleged that syndicates are deliberately inflating prices by creating an artificial crisis to secure huge profits.

According to Chattogram Customs data, a total of 1,53,560.5 tonnes of 12 types of spices were imported into the country from 1 July to 27 April of the current fiscal year. 

Of this, 62,394 tonnes were ginger imports. During the same period in the previous fiscal year, imports stood at 38,547 tonnes. 

Infographics: TBS

Despite the sharp rise in imports, the continuing instability and volatility in the market have sparked widespread frustration among ordinary consumers.

A market visit conducted a week ago found that Chinese ginger was selling at Tk100 to Tk110 per kg in the wholesale market at Khatunganj. That price has now surged to Tk180 to Tk190. 

Meanwhile, Chinese garlic is being sold in the wholesale market at Tk110 to Tk112 per kg, domestic garlic at Tk40 to Tk60, and onions at Tk25 to Tk35.

In the retail market, depending on quality, ginger is currently selling at Tk200 to Tk220 per kg. 

Retailer Shahadat Hossain said, "I bought a few sacks of ginger 10 to 15 days ago at Tk95 per kg. I went to the market again on Saturday, but after seeing the price, I returned empty-handed."

Expressing his frustration, Zahidul Islam, a resident of Muradpur, told TBS, "For some reason, the prices of various products always rise during Ramadan and Eid-ul-Adha. The government should pay closer attention to these market irregularities."

Traders, however, attributed the price hike mainly to supply shortages and financial losses. 

Md Idris, general secretary of the Khatunganj Hamidullah Mia Bazar Traders Association, told TBS, "Importers have been incurring continuous losses as ginger prices remained on a downward trend for the past few months. Until April, ginger had to be sold below the import cost. Due to these prolonged losses, many importers lost capital and did not open new LCs. As Eid approaches, the resulting supply shortage has destabilised the market."

However, despite the huge volume of imports, the Consumers Association of Bangladesh (CAB) considers the traders' argument nothing more than a lame excuse. 

SM Nazer Hossain, vice-president of the organisation's central executive council, told TBS, "Traders always need an excuse to raise prices, and the LC supply crisis is just another pretext. Especially around Eid-ul-Adha, when demand for ginger increased, they formed syndicates and hiked prices. Instead of maintaining professionalism and conducting business normally throughout the year, traders are trying to make 'one-time' profits during the festive season."

CAB leader SM Nazer Hossain said, "The government and the administration appear more concerned with protecting the interests of a handful of traders than those of ordinary consumers. No effective action is being taken against those creating artificial shortages and driving up prices."