The spice market tends to experience fluctuating prices during Eid-ul-Adha, and this year is no different. However, the spice market has been notably unstable since before Eid-ul-Fitr.
Over the past two months, spice prices have increased in several stages, with various spices being sold at record-high rates right now.
Cardamom is being sold for up to Tk3,800 per kilogram. The price of cumin is now almost Tk1,000. Moreover, the prices of cloves, nutmeg, cinnamon and other spices are significantly higher than before.
After a thorough investigation, it is clear that a big syndicate – which remains untouchable – manipulates spice prices.
Prices shift instantly upon their single phone call, and this correspondent witnessed such an incident this week.
Perfect Spice Store in Moulvibazar, Dhaka, was selling cardamom at Tk3,320. Shortly after, the store received a call, and the price of cardamom jumped to Tk3,600 immediately. The price of cumin increased by Tk40 taka, while the prices of cloves and cinnamon rose by Tk50-60 per kg.
When asked why spices were not being sold according to their purchase price, one seller from Perfect Spice Store said these instructions (over the phone) had to be followed to maintain market stability.
He said it was not just him; all traders in Moulvibazar did the same. “If another call comes, the price list will be erased, and prices will be increased again.”
When asked where the call came from, the seller replied: "Chittagong."
This reporter found through conversations that the wholesalers in Moulvibazar are always waiting for such calls. As soon as the call comes, spice prices go up. However, when it comes to lowering the prices, they tend to take their time, even after a phone call containing such instructions.
In Moulvibazar, cumin prices range between Tk690 and Tk940 taka per kg, depending on the quality. Cardamom prices range from Tk3,380 to Tk3,820. Cinnamon is selling for Tk480 to Tk500, mace Tk2,840, cloves Tk1,420 and black pepper Tk750 to Tk790 taka per kg.
Meanwhile, white pepper is Tk1,280 taka and prune is being sold for Tk450 per kg.
During Ramadan, especially around Eid, these spices were Tk50 to Tk240 cheaper. The price of cardamom has now doubled compared to during Ramadan.
Instructions from ‘above’
Sellers in Moulvibazar said the market was controlled from “above.” They can vary the prices of spices by Tk5-10 taka depending on the quality, but any larger deviation can cause problems. For instance, the prices of cumin, cardamom, cloves, cinnamon and nutmeg must be consistent.
Abdus Salam, a wholesale spice seller in Moulvibazar, said every seller in the wholesale spice market sold spices at the same price.
“The prices of some spices vary a little based on quality. Often, customers buy different varieties of the same spice at a lower price without checking the quality. For example, one type of cardamom costs Tk3,150, another costs Tk3,400 and another Tk3,650. Those who are not familiar with the differences might think all cardamom is the same.”
When asked who determined the prices, this seller said he could not say.
According to wholesale buyers of spices, the prices fluctuate two to three times a day.
Monaem Shikdar, who was in Moulvibazar to buy spices at wholesale rates, said spice prices had been steadily increasing for the past two years.
“If the price of a spice increases by Tk100 per kg, it may later decrease by Tk20. For example, the price of cardamom, which was Tk1,200, has now risen to Tk3,600. The price of cumin has gone from Tk400 per kg to Tk1,000.
“In this country, once the price of something goes up, it rarely comes down. Sellers keep raising prices, citing excuses such as the dollar crisis, high import costs and high tariffs. The authorities do not take any effective measures either."
Spices, especially cumin, cardamom, cinnamon, cloves and nutmeg, are being sold at considerably higher prices in the retail market compared to the wholesale market. In the retail market, 100 grams of cardamom is about Tk500 taka, making the price 5,000 taka per kg. For Tk100 taka, one gets only about 15-16 pieces of cardamom.
Cumin is sold for up to Tk120 taka per 100 grams in retail. Even two pinches of cumin are not available for Tk50.
Sellers say their hands are tied
Sellers claimed there was nothing they could do about it as they were buying them at very high prices, saying making a profit in retail was the only way for them to survive.
Surma Begum, a housewife, found herself in an awkward situation when she went to buy spices from Mehdi Store in Kaltabazar, Old Dhaka. She said when she asked the shopkeeper for Tk20 taka worth of cumin and Tk50 worth of cardamom, he hesitated at first. “Later, when he gave it to me, I was stunned to see just seven-eight pieces of cardamom and a pinch of cumin for Tk70. I ended up buying more than I had planned."
Regarding the rising spice prices in the retail market, vendor Mehdi Hossain said: "We spend almost Tk4,000 to buy one kg of cardamom. Cumin costs us Tk1,200 per kilogram. The prices of nutmeg and cinnamon have increased by Tk200-300. If we do not make a profit, how will we survive?
“Our shop rent, electricity bills, employee salaries and personal expenses all depend on the sales from the shop. If we could buy at lower prices wholesale, we would not sell at higher prices in retail. There was a time when buying Tk20 worth of cumin was enough to cook beef two to three times. Now, Tk20 does not get you enough cumin for even one meal. Cardamom has become so expensive that it could give some competition."
Meanwhile, wholesale traders said shops that would usually buy 5kg of cardamom from them were now buying only 2kg. Shopkeepers who used to buy ten types of spices were now buying only five types, they added.
Mizanur Rahman Mizan, the manager of Ababil Spice House in Moulvibazar, said sales this year were not even half of what they had been in the last two years.
He said due to the increase in spice prices, sales had decreased. “Moreover, people's purchasing power has diminished. Spices are one of the key ingredients for making food tasty, but people now prioritize buying essential items over spices, which has led to a decline in sales.”
Several traders in Moulvibazar made the same comment that business had slowed down.
Among them is Md Nasir Uddin, the proprietor of Tahsin Enterprise, who said in the past, the volume of sales during Eid-ul-Azha had been much higher, adding that now it was not even one-third of what it used to be.
“There used to be so many customers in the shop that there was hardly any space to move around. However, now hours pass by without any customers coming in.”
Additionally, he claimed that many spices entered Moulvibazar through the black market (illegal channels). Nasir said many businessmen sold black market goods to customers who came to the market, “as a result, those of us who import spices legally and pay VAT experience reduced sales and incur losses.”
Another businessman from Moulvibazar, Md Rafiqul Islam, the proprietor of Borhan Enterprise, said the variety of cardamom that had been priced at Tk1,500 per kg during Ramadan was now Tk3,650. “The cardamom that was Tk1,400 is now Tk3,380. This means the price has increased by TK1,000 to Tk1,500 in just two months. The prices of black pepper, almonds and white pepper have all increased by Tk200 to Tk250 per kg.”
“Although we sell wholesale, we also have to buy wholesale from Chittagong. If we cannot buy at a lower price from there, we cannot sell at a lower price here,” he explained.
Meanwhile, Rafiqul said, seeing the high prices of spices, customers were buying less than what they used to. “As a result, sales are down.”
Price lists
A visit to Moulvibazar’s spice market revealed that while many shops have price lists, many others do not. Additionally, in some shops where price lists are present, the sellers are reluctant to display them.
Meanwhile, customers complained that sellers were charging higher prices than those listed.
Mosleh Uddin, who came from Keraniganj to Moulvibazar to buy spices at wholesale prices, said: “Even though these shops have price lists, the sellers claim that the prices are from the day before or that prices have increased due to ‘phone calls.’ Many shops do not have price lists at all, and even if they do, they are not meant for customers.”
“The real prices do not match those listed on the price lists,” he compalined.
“I came from Keraniganj to purchase spices at wholesale prices for my grocery store. After reviewing the entire market, I bought cumin, cardamom, cinnamon, bay leaves and cloves. The price list showed cumin at Tk660, but I had to pay Tk690. Cardamom was Tk3,380. However, when I inquired about the price, they told me they usually sell it for Tk3,700-3,800, but for me, it would be a flat Tk3,650. After checking two-three other shops, I found the same prices there as well.”
At Moulvibazar's Azmir Traders, Messrs Narsingdi Store and Rohan Enterprise on Ali Azgar Hossain Khan Road, and Taqwa Enterprise and Jabbar Store on No 10 Ali Hossain Khan Road, among many other shops, price lists were not visible.
Sellers had various excuses for this. Some shopkeepers were even rude when asked to show the price list. Among them were the sellers from Jabbar Store and Messrs Narsingdi Store.
“Are you here to buy something? If not, why should we show you the price list?" they responded after this reporter asked to see the price list.
After they learnt that the inquiry came from a journalist, the sellers said they were extremely busy now.
Market monitoring
In such circumstances, buyers emphasized the need for regular market monitoring by consumer rights authorities.
They also called for the establishment of a dedicated market monitoring cell by the government to ensure compliance.
Fazlul Haq, a customer, said if there was a dedicated government monitoring cell for market oversight, dishonest sellers would not be able to deceive consumers by charging excessively high prices.
Such a cell would take immediate legal action against those who engaged in unfair practices of selling goods at unjustified prices, he said, criticizing the repetitive leniency shown towards these businesses.