Ample supply of commodities ahead of Ramadan
Some goods are likely to cost more as global market booking prices have increased
Highlights:
- Imports rose year-on-year in Jan-Feb
- edible oil
- soya seeds
- wheat
- sugar
- lentil
- onion
- Import cost soared as global market booking price rising
- 4.88 lakh tons of sugar imported
- Onion imports almost doubled to 83,000 tons
- Traders expecting no supply crunch of Ramadan products
Imports of commodities, which are usually in high demand during Ramadan, have increased ahead of the month of fasting, eliminating concerns about a supply crunch for daily necessities.
However, a few products are likely to cost more as international market booking prices have gone up.
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According to Chattogram Customs data, 1.30 lakh tonnes of chickpeas were imported in January and February, with another 28,000 tonnes added to orders in the first week of this month.
The average price of chickpea per kg upon clearing the food item from the port was Tk55, which is only Tk1 more than the price in the last two months. In the retail market, average quality chickpea sells for Tk70 per kg. Premium quality chickpea is going for Tk80, which was Tk75 a week ago.
Imports of a number of foods, including soybean oil, palm oil, soya seeds, wheat, sugar, lentil and onion in the months of January and February have increased year-on-year.
Lentil imports at the end of February stood at 1.32 lakh tonnes, which is 50,000 tonnes more compared to last year. The import price of lentils per kg has gone up as well – from Tk49 to Tk76, which increased to Tk 80 in the first week of March.
In the retail market, lentil prices range from Tk95 to Tk115 depending on quality.
By the end of February, sugar imports also increased significantly with a total of 4.88 lakh tons of unrefined sugar imported so far, which is 2.60 lakh tons more than in the same period last year. The retail price of sugar is ranging from Tk78-80 per kg, which is Tk10-13 more than last year.
Edible oil imports, including soybean oil and palm oil, stood at 3.88 lakh tons, 60,000 tons more than last year. 39,000 tons of soy seeds for soybean oil production have also been imported.
Retail soybean oil per litre has increased Tk54-55, while the price of bottled oil per litre went up Tk30-35 and is selling for Tk165-170. Price of palm oil has increased by more than Tk50 and as of last week, it was Tk153-153 per litre. However, the Trading Corporation of Bangladesh in its market price listing has mentioned that currently loose soybean oil and palm oil are not available in the market.
Onion imports almost doubled to 83,000 tons at the end of February this year and 10 lakh tons of wheat was imported.
Traders in Khatunganj – one of the largest wholesale commodity hubs in the country – said each year when the month of Ramadan begins, importers raise prices taking advantage of higher demand. This time, with the price hike in international markets they are concerned that importers may double down on the overall upward trend of commodity prices.
Solaiman Badsha, proprietor of Taiyaba Traders at the market, said it is the responsibility of the government to ensure that prices do not go up during Ramadan.
Tariq Ahmed, director of operations at TK Group, a major importer of consumer goods, said that except for products imported from Russia-Ukraine, that is the Black Sea region, there should not be a crisis in Ramadan products.
"If there is no supply crisis, there should be no volatility in commodity prices," he added.
He also said prices have already increased due to the global market hike and therefore, there is no reason for further price increases.
SM Nazer Hossain, co-president of the Consumers Association of Bangladesh (CAB), said there is a tendency to hoard products when prices are rising in the world market and that influences domestic market pricing.
"The government can always inform us about the stock, supply, and import price of products, which can give comfort to consumers," he suggested.
He said government agencies can even choose to import some products on their own without tapping local market supplies.
"If these steps are taken, there will be no concerns of price gouging," added the CAB co-president.
