Iran war triggers hikes in essential prices at Khatunganj

Prices of several essential commodities have risen at Khatunganj, Chattogram's largest wholesale market, with traders citing the Iran conflict, despite data showing that current stocks in the country exceed demand. 

Traders say uncertainty in international markets and fears of a possible fuel price hike are driving the sudden rise in commodity prices. Market insiders, however, allege that some traders are exploiting the situation by increasing prices of goods purchased earlier.

There are also allegations that some traders are hoarding products and limiting sales, adding further pressure to the market.

On 28 February afternoon, refined palm oil was selling at Tk5,900 per maund (37.32kg). After news of the attack on Iran spread later that evening, the price rose to Tk6,000. Although it dipped slightly the following day, it is currently trading between Tk6,000 and Tk6,020.

Wheat prices have increased by Tk150 to Tk1,300 per maund. Soybean oil has risen by Tk120 to Tk7,180 per maund, while sugar prices have gone up by Tk70–80 to Tk3,470–3,480 per maund.

Prices of imported pulses and dry foods are also rising, despite a slight decline in the middle of Ramadan.

Several traders said demand for dry foods and sweets typically increases ahead of Eid, and fears that the conflict could prolong have created instability in the market.

Md Mohiuddin, general secretary of the Chaktai-Khatunganj Aratdar Samiti, told The Business Standard that although prices of some items have increased, most remain within a normal range. However, he warned that if the conflict continues, supply chains may be disrupted and prices of more commodities could rise.

Consumer rights activists say some traders are using the situation as an excuse to increase prices.

SM Nazer Hossain, vice-president of the Consumers Association of Bangladesh, said transport costs have not yet increased, suggesting the conflict is being used as a pretext for raising prices. He also expressed concern over what he described as a lack of effective government monitoring and urged authorities to take strict action against unjustified price hikes.

An analysis of import data from Chattogram Customs and demand estimates from the Ministry of Commerce shows that current stocks of several essential commodities in the market are far higher than demand.

According to customs data, Bangladesh imported nearly three lakh tonnes of chickpeas in 2025, against a maximum annual demand of around 2,30,000 tonnes. Despite this surplus, prices are being increased citing the excuse of war.

Similarly, during the first eight months of the current fiscal year, about 1.038 million tonnes of palm oil and 4,63,000 tonnes of crude soybean oil were imported. According to the Ministry of Commerce, the demand for soybean oil during Ramadan is around 3,00,000 tonnes.

Relevant stakeholders say that creating instability in the market despite adequate imports and surplus stocks is concerning.