Inflation bites into Iftar

Shafiq Alauddin, a restaurant owner on Old Dhaka's Nazimuddin Road, is planning to sell halim in reduced quantity while keeping the price same at Tk200 during Ramadan – to cope with soaring prices of essentials that has severely impacted people's purchasing power.

"Prices of various ingredients of halim have gone up. The price has been adjusted this way, otherwise many people will not be able to afford this popular food item," he said.

Restaurant owners say, prices of other iftar items, including beguni, piyaju, chhola, jilapi, muri, kebab and beef dishes have gone up too as Ramadan this year coincides with rising prices in the global market.

Failing to keep up with rising commodity prices, consumers are now cutting back on their spending and restaurant owners are fearing that sales might drop this Ramadan.

Al-Amin, a resident of Rampura, Dhaka, runs a family of five with his job at a private company that pays him Tk30,000 a month. With most of the earnings going to house rent, he is struggling to make ends meet including the cost of medicines for his elderly parents.

"My wife buys oil, sugar and onions from TCB trucks…We do not have the luxury to buy iftar from restaurants," Al-Amin said.

Imran Hasan, secretary general of Bangladesh Restaurant Owners Association, said, "When people are already in a state of disarray due to the increase in the prices of goods, there is a concern about how good the Iftar business will be."

Nazrul Islam, manager of Bikrampur Sweets store on Dilu Road, told The Business Standard that the price of jilapi has already increased from Tk200 to Tk240 per kg and it is likely to increase further.

"Piyaju, Beguni and potato chops will be sold either at the same price but in a smaller quantity or the price will be increased by Tk7-8 per piece," he added.

Old Dhaka businessman Shafiq Alauddin said, "Last year we sold Jali kebabs for Tk35 a piece. This time we have to sell it at a higher price because the price of beef has increased from Tk600 to Tk750 per kg."

There has been no survey or research on the spending for Iftar in the country since the one conducted by economist Dr Mamun Rashid in 2014.

At present some 12 crore people have Iftar in the country. With an average spending of Tk40 per person in Iftar, the daily spending stands at Tk480 crore – which in one month reaches Tk14,400 crore.

Many are saying it will be difficult for the people with fixed incomes. Many may not be able to spend even Tk40, because the expenditure has increased more than the income.

Sohail Rana, a carpenter in Karwan Bazar, said he is having to cut items on the food menu.

Many people with fixed incomes are in a similar predicament.