Anik, a resident of the capital's Mohammadpur area, works in a communication agency and his main function is to communicate with clients and stakeholders, mostly over the phone.
For months now, he has been trying to communicate more through WhatsApp or Facebook Messenger instead of local mobile networks, as the latter is somewhat more expensive than internet-based messaging platforms.
“Living costs have increased so much that now I have to cut costs in various ways. For commuting to and from the office, I used to use Uber, Pathao, or CNG-run auto rickshaws. Now I usually use public transport,” he added.
He further said that the prices of all essential commodities like rice, pulses, cooking oil, salt, fish, meat, and spices have gone up several times, not to mention house rent, which has made running a family tougher.
“Now I have to continue cutting costs as much as I can,” Anik said.
Not only Anik, this has been life for most people in Dhaka recently.
They no longer see any hope or solution in the "all is well" statement of policymakers and politicians regarding price hikes of essential commodities.
Consumers fume over abnormal hikes during Ramadan
Prices of food and other daily commodities have hiked before the start of Ramadan.
On the first day of Ramadan, while visiting some markets of the capital, it was seen that the price of chickpeas was Tk85-Tk90 per kg, which was Tk70 per kg just a week ago.
Though the TCB data shows it as Tk70 per kg, the reality in kitchen markets was completely different.
The price of coarse lentils also increased to Tk100 per kg, which was Tk95 last month, and medium lentils Tk115 per kg, which was Tk105 last month.
Packaged flour was sold at Tk58 per kg, which was Tk55 last week, and Tk52 last month.
Loose flour was sold at Tk50 per kg, which was Tk46 last week.
Despite huge tax breaks, instability in the cooking oil market has not subsided.
It is now being sold at Tk160-Tk168 per litre though it was fixed by Tk160.
A 5-litre bottle is sold at Tk760.
Both variants saw a hike of 16%-20% year-on-year.
The meat market is also in disarray, as beef prices further witnessed a hike, sold at Tk700-720 per kg which was Tk650-Tk670 last week and Tk600-Tk620 last month.
The sufferings of poor and lower middle-income people, who depend largely on broiler and Pakistani chicken, fish and egg for protein, have also intensified.
Broiler chicken prices increased to Tk180 per kg, Pakistani chicken to Tk330-360, local chicken Tk550-580 and farm-bred Rui fish to Tk280-430 per kg.
The price of sugar also increased to Tk80 per kg for the white variant, and Tk100 for the local brown variant.
However, there was an extreme scarcity of brown sugar in the country’s market.
Other Ramadan essentials
Brinjals cost Tk 60-85 a kg yesterday, while cucumbers cost Tk70-90, and tomatoes Tk50-60 a kg, all up by Tk15-20 in a span of a few days.
The price of dates, a Ramadan staple, also experienced a fresh hike since last week.
Marium variant is being sold at Tk900-Tk1,000 per kg, where Ajwa variant is being sold at Tk800-Tk900 per kg.
Both variants experienced a hike of Tk100-Tk200 within the last few days.
Watermelon is now out of the reach of the ordinary consumers as a syndicate has been selling the seasonal fruit as per kg, which was sold as per piece earlier.
Moinul Islam, a consumer from Shah Ali Market of Mirpur area, said that watermelon is now out of reach of the lower classes.
If a worker earns Tk500 for a whole day, he will not buy watermelon for Tk300-Tk400. Because he has to buy daily necessities first, he added.
However, Prime Minister Sheikh Hasina assured in a question-answer session in the Parliament last week that the prices of essential commodities will remain stable in the country during Ramadan.
But buyers like Moinul Islam said that syndicates of several big companies such as Bashundhara, Meghna, City, S Alam, TK Group etc are responsible for the rise of prices of essential commodities including oil.
“Since they are influential and close to the policy makers, the necessary action may not be taken against them. Ordinary people are suffering for the benefit of a few companies,” he added.
However, the government said that they have been offering some consumer goods at a subsidized price to nearly 10 million people in need to manage the situation.
Meanwhile, experts think offering consumer goods to low-income families at a subsidized price will help in a short time, they blame the policy makers for not being able to control the market.
Nazneen Ahmed, country economist of the United Nations Development Program (UNDP), said that the prices of edible products that Bangladesh produces have also gone up in recent months.
“Our rice production was excellent this year. Still, its price has got higher without any reasonable cause,” she said, adding that the government has to play a role here to control the market.”
Inflation rising to unsustainable levels
According to the International Monetary Fund (IMF), the consumer price index (CPI) in Bangladesh rose to 5.9% in the fiscal year 2021-22 due to high commodity prices internationally.
The latest data of the Bangladesh Bureau of Statistics (BBS) showed that general inflation in Bangladesh in February climbed to 6.17%, the highest since October 2020.
Prices of rice, cooking oil, sugar, and eggs have increased sharply, which contributed largely to the inflation.
Rasheda Begum, a resident of Kallyanpur area, said that the commodity prices skyrocketed in the last one year, but her family income did not increase.
“There has been no increase in income due to the Covid-19 pandemic, while policymakers have not been able to control the prices of commodities,” she added.
She also said that it is impossible to save a single penny now, as they are heading towards a dark and uncertain future, and the collapse of the economy without savings is only a matter of time.
“I think even the combined duo of policymakers and traders are unable to control commodity prices. There is no basis for saying that prices are at a tolerable level or everything is fine,” she added.
Ukraine war driving up prices?
The traders blame the Ukraine crisis for this abnormal hike of the essential commodities.
They said that Russia and Ukraine supply nearly 29% of the global demand for wheat, said Trading Economics.
Moreover, these two countries are the main source of wheat import for Bangladesh.
Aminul Islam, a wheat importer, said that the global wheat market is completely disrupted.
“Exports from those countries stopped temporarily. As a result, the supply of food decreases which leads to a price hike,” he added.
Consumers are frustrated as the price of flour and atta has surpassed the price of coarse rice, as people are on the brink of losing the alternatives.
Importers said that the prolonged Russia-Ukraine war was impacting the country’s market.
Mohammad Mohiuddin, general secretary of Chaktai-Khatunganj Aratdar Sadharon Bebosayi Kallyan Samity, said that banks don’t open LCs for Russia and Ukraine.
“So, the market feels the impact. Even if the war ends soon, its effects will be felt for a long time,” he added.
Syed Sagir Ahmed, general secretary of Khatunganj Trade and Industry Association said that the prices of all kinds of products have already gone up in Khatunganj.
“Prolonging the Russia-Ukraine war will have a major impact on imports and exports. The government and the business community need to be prepared now to deal with the impending crisis,” he added.
However, many said that it is the custom of the traders of this country to blame the international market by increasing the prices of goods.
Many commodities, including wheat, were brought in before the Ukraine crisis, and their prices are being raised on the issue of war.