As Bangladesh grapples with a severe heatwave and frequent power cuts, residents of Dhaka and other parts of the country are seeking some respite by flocking to shops that sell rechargeable fans.
However, traders are apparently exploiting this opportunity by gouging their prices.
Customers said they never felt the need to purchase rechargeable fans when there was a consistent supply of electricity.
However, with the sudden increase in temperatures and the worsening power situation, they are compelled to buy these fans.
Most consumers complained that these products are being sold at exorbitantly high prices.
On the other hand, retailers justified the high prices by stating they had to buy them at increased rates from importers.
They claimed that the importers brought these charger fans during winter in December and are now releasing them into the market as the heat increases, raising the prices step by step.
Consequently, retailers argued they have to sell these fans at higher prices because they themselves bought them at elevated prices.
Situation in electronics markets
A visit to electronics shops in Baitul Mukarram Stadium Market and at Nawabpur Road in the capital on Tuesday revealed that the prices of various types of rechargeable fans have doubled in just one week.
A closer look at the shops showed that rechargeable fans with 12-inch blades are selling for Tk4,500, up from Tk2,800.
Besides, 16-inch fans were being sold for Tk7,000, up from their former price of Tk4,000.
Eighteen-inch fans were being sold for Tk11,000, previously priced at Tk9,000.
Additionally, there were variations in the prices based on the brand, with some being sold for Tk1,000 less or more.
Retailers' ‘struggle' for profits
Jamiul Saad, a retailer at Stadium Market in the Baitul Mukarram area, said that they are not making any profit by selling rechargeable fans.
He explained that the profit margins for retailers are very small and that the competition in the rechargeable fan market is very fierce.
"The real profit goes to the importers and big shops who keep a stock of 200-400 fans," he said.
“We bring in about nine to 10 pieces a day. Seeing the high demand, we mark them up by Tk500-1,000,” he added.
Commenting on the rapidly increasing prices of these fans, a salesperson, Nazmul, said: "Whatever the price is now, when you come back, you will find it is Tk500 more. I bought five charger fans from Nawabpur on Tuesday morning. After selling these, when I went to get two more cartons in the afternoon, I saw that they had increased the wholesale price of the same fans I had bought in the morning."
On the other hand, Ashik, a seller of electronic products at Sundarban Square in Gulistan, said he does not want to take any risk by buying a large quantity of these fans.
“The demand will decrease once it rains, which is why I do not want to take any risk. I had a stock of 300 rechargeable fans, and I have sold all of them. Now if I go to buy new ones, I will have to sell them at the price I buy them for,” he said.
“How can I profit in this situation? I cannot make other people suffer,” he added.
Importers blame dollar crisis, taxes
Citing the dollar crisis and the inability to open letters of credit (LCs), importers claimed that there is a shortage of rechargeable fans as they cannot bring in new goods. With the increasing heat, the demand for these fans has also risen; therefore, all importers have had to increase prices.
Liton Khan, the owner of Khan Electrics and an importer of electronic goods, said the price of any item increases slightly when there is high demand.
“The government also imposed more taxes on importing charger fans; hence, we cannot do anything about the prices,” said Liton.
When asked about the abnormal increase in the price of rechargeable fans, Liton questioned: “How can it be abnormal? We are facing a severe dollar crisis. The dollar, whose value was Tk90 before, is now valued at Tk110. Is it not abnormal?”
“Banks are taking more commission from us. Now we have to pay the full amount upfront; only after that can we bring in new goods,” he said.
Customers bearing the brunt
Amid the difficulties retailers and importers are facing, it is the customers who are the worst sufferers. They are having to buy rechargeable fans at increased prices.
Taslim Islam, a customer who visited the Stadium Market from Dhanmondi, expressed his frustration by saying that whenever the demand for something increases in the country, its price also goes up, which is quite distressing as the salaries of the masses are not increasing at all.
“The quality of life is decreasing and I am in great difficulty,” he said.
Another customer, Rakibul Islam, who came from Narayanganj, shared his concerns: “We are now facing regular power cuts. I have children at home, so I had to buy a rechargeable fan for their comfort. I know the demand for rechargeable fans will decrease after a few days. But now the shopkeepers are raising the prices, taking advantage of the situation.”
“Retailers are asking Tk500 more each time you make a round. We have no option but to buy fans at the asking price. The prices of rechargeable fans are even higher in our area. We are truly helpless,” he said.
