How many people fast in Bangladesh? How many people have iftar and sehri during Ramadan? How much does iftar cost in a rural place? How much does it cost in semi-urban or urban areas? How much do you have to pay for iftar in the metropolis? What is the size of the Ramadan economy in Bangladesh? I have been thinking about these things for the last few days.
I am told almost 40% of the Muslims in Bangladesh fast during Ramadan. Iftar in a village in Rangpur, Satkhira, Laksam, Sunamganj, or Jhalakathi would cost Tk14. The same would cost Tk20 in any upazila or district town, and Tk25 in an urban place. In the metropolitan areas, this would cost Tk30, and in Dhaka city, iftar can cost from Tk3o to Tk35 for a single person. I am told though around 55 million people (mostly between 25 and 60 years of age) fast in Bangladesh, almost 90% of the Muslim population has iftar.
If we take Tk30 as the average cost of an iftar for 55 million people, the figure is Tk1.65bn. If you account for 110 million people having iftar at Tk30 per person, you get a figure of Tk3.3bn.
You often get to hear from your fasting friends that they need to eat something good or “bhalo-mondo” during Sehri. How much does that good food cost? Preliminary surveys show sehri costs Tk20-30 in rural places and Tk50-70 in urban places. I am not talking about the Al Razzaks or Star Kababs in Dhaka or their like in the metros, which remain open during Sehri with an average sehri costing around Tk500 per person. If 50 million people are spending even Tk50 per person on Sehri, this should add up to Tk2.5bn each day.
Bangladesh seems to be spending Tk5.8bn each day to keep its God-fearing people happy during the month of Ramadan. For the entire month, the number comes down to Tk174bn. Every Ramadan, we see the price level increase. More surprisingly, no matter what the price is, people queue up to buy iftar items. Maybe our purchasing power is increasing too. In case of some shopkeepers, things will be sold at whatever price you offer.
A preliminary study done with a few of my colleagues at Brac Business School two years back revealed around 30 million serving people receive bonuses or some extra money or “bakhshish” during the Ramadan festival. On an average, they spend Tk5,000 to buy things for themselves and family members. Though my journalist friends think the average spending is much higher, I shall be conservative in my approach. The total figure culminates to Tk150bn. And I’m not even including the expensive shopping malls.
How much do we spend on Eid day? 50 million families spend Tk1,000 on average on this day. This makes the total spending on that one day Tk50bn. These days, I am told going on vacations during Eid is on the rise, so is shopping outside. Around 15,000 people take a “break” during the Eid holidays, each spending Tk50,000 on an average, adding up to Tk750m in total.
I almost forgot to mention the zakat spending during the Eid festival. Though our rich people are shy of paying government taxes, they at least pretend to be religiously righteous through paying zakat to poor people and relatives. Though there are doubts regarding effective utilisation of zakat money, spending through zakat is increasing in Bangladesh. This reportedly sees almost Tk2bn being spent during Ramadan.
So, the Ramadan economy in a country like Bangladesh is worth Tk377bn at a minimum. However, various reports show us almost double the money is being spent during Ramadan since spending behaviour is shifting in Bangladesh with increasing urbanisation and rise of consumerism. Externalisation of the economy, foreign travels, and more importantly, television advertisements are increasingly influencing our spending style.
Private sector growth, more money in individual hands, private university education, increasing corruption, sponsorship of corruption by the highest authority, no punishment for wrongdoings, failure of religious institutions, and confusion over right and wrong, are all seeing more money exchanging hands during festivals. Ramadan, being the longest and largest festival, is reportedly seeing almost Tk700bn moving from one hand to another during the holy season.