The holiest month of Ramadan has begun, yet the cost of essential items remains beyond the means of the common people in Bangladesh.
The prices of essentials has typically surged in the middle of Ramadan in previous years, but the situation has now changed for the worse.
This year, prices have been on the rise since the start of the month, with no sign of abating.
In Bangladesh, like most countries, there is competition among businessmen to hike the prices of essentials by hoarding the goods.
A vegetable seller in Dhaka, Rubel Mia, said the prices of cucumbers, tomatoes, brinjals and limes have increased this year.
Lemon or lime, which was Tk20-30, is now being sold at Tk100-120 in Ramadan. And cucumbers are now sold at Tk100-120 per kg, which was previously priced at Tk50.
"Although supply is not low during Ramadan, prices have gone up. We buy at a higher price so we sell at a higher price,” he said.
The price of dates was the biggest shock in this year's Ramadan. It could not be reduced even by lowering import duty.
Traders argue that despite reductions in import duties, the duty is calculated on the basis of increased date prices, resulting in greater losses for them.
Ultimately, date prices are determined by inspecting their LCs, yet dates are nowhere to be found at that price.
The Ministry of Commerce has set the price of ordinary dates at Tk150-165 per kg. However, finding these dates proves to be challenging.
Mintu Mia, a fruit seller in the capital’s Kalabagan, said: "I will sell everything (dates) by packaging it. Then I will not have to sell those at the rate of unpackaged dates. No matter what the government says, there are no dates below Tk300 per kg in the market. The price of sugar has been increased by Tk2 per kg before Ramadan. Now we are selling it at Tk155 per kg.”
Price comparison
No government or private organization in Bangladesh sets the prices of Ramadan products separately.
Prices are typically calculated based on yearly averages, rather than specific considerations for Ramadan.
According to the Consumers Association of Bangladesh (CAB), the highest price of a kg of coarse rice was Tk32 in 2009.
Bottled soybean oil was selling at Tk85 per litre, beef at Tk218 per kg, mutton at Tk332, local onion at Tk38, imported onion at Tk29, potato at Tk27, sugar at Tk44, apple at Tk120, lentils at Tk110, chickpeas at Tk61 and boiler chicken at Tk118.
In 2016, the price of one kg of coarse rice was set at Tk36, bottled soybean oil was selling at Tk98 per litre, beef at Tk427 per kg, mutton at Tk618, local onions at Tk39, imported onions at Tk27, potatoes at Tk25, sugar at Tk121, apples at Tk140, lentils at Tk139, chickpeas at Tk87 and broiler chicken |at Tk151.
Now, in the month of Ramadan in 2024, the price of one kg of coarse rice is a maximum of Tk60. Beef is selling at Tk700-800 per kg, mutton at Tk1,200, local onions at Tk90, potato at Tk35, sugar at Tk155, apples at Tk380, lentils at Tk160, chickpeas at Tk120, broiler chicken at Tk220
According to the CAB data, in the last 15 years, the price of coarse rice has increased by 100%, beef by 350%, soybean oil by 100%, lentils by 50% and chickpeas by 100%.
On average, the price of all commodities has increased by almost 100%.
According to Trading Corporation of Bangladesh (TCB) data, the prices of sugar, dates, chickpeas, onions, and pulses have been the highest in the last three years.
According to the agency, before Ramadan in 2022, the price of sugar in the market was Tk78-80 per kg. This year, the price of sugar is Tk140-145 per kg.
Before Ramadan in 2021, the price of chickpeas in the market was Tk70-75 per kg. This year, the price has increased to Tk100-110.
‘Market is in the hands of traders’
CAB Vice President SM Nazer Hossain said the government and other related agencies could not control the market, and it has been taken over by the traders. “They control the market the way they want to.”
Despite the reduction in duties for four types of products before Ramadan, only the price of edible oil has decreased.
Specifically, the price of soybean oil has been lowered by Tk10 per litre. However, the price of soybean oil in the international market decreased by half.
AHM Shafiquzzaman, director general of the Directorate of National Consumers' Rights Protection, said: "The price of oil has indeed decreased. The reduction in sugar duty, though slight, has not impacted the market significantly. We have set the price for ordinary dates, but the dates currently available in the market were imported earlier.”
He added: "If we aim to lower product prices by reducing tariffs, then we need a reasonable adjustment period. It cannot be expected to happen just 10 days before Ramadan.”
Former FBCCI director and president of the Shop Owners Association Md Helaluddin made a similar argument.
"The products on which the government has reduced duty are imported goods. Bangladesh has the highest tariff on consumer goods in South Asia. The market is now stable. But in general, there are many misdeeds behind the increase in prices, which I cannot expose.”
In this regard, State Minister for Commerce Ahasanul Islam Titu said: "There is enough stock of consumer goods in the country. There is no shortage of imported goods and domestic products.”
According to the Ministry of Commerce, the demand for edible oil in the country is 150,000 metric tons every month. In Ramadan, this demand goes up to 300,000 tons.
For sugar, the annual demand in the country amounts to approximately 2 million tons, with a monthly requirement of 150,000 tons. However, during Ramadan, this figure spikes to 300,000 tons.
The yearly demand for chickpeas in the country is 140,000 tons.
The annual demand for dates is about 90,000 tons, with 40,000 tons specifically needed during the month of Ramadan.
Traders' manipulation of the market
Agricultural economist Dr Jahangir Alam Khan said: "The prices of agricultural commodities depend on the season. For example, the price of vegetables is low in winter. But it is not as low as it should be. That is the problem with the market. Here is the syndicate.”
He added: “For example, now the price of chicken has increased a lot. The price of chicken is not supposed to increase so much at this time. This is where the traders are manipulating the market. They fix the price of eggs and chicken and buyers have to buy at that price. The same goes for imported goods.”
He urged the government to monitor the markets and maintain a proper supply of goods.
In this regard, Prof Dr Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said: "This situation has arisen due to long-standing accumulated problems in the market, placing immense pressure on the common people as they grapple with inflationary forces.”
He added that there are many middlemen between imports and consumers from production.
"They control the market, and there should be accurate information regarding products and demands. Supply lines, imports, and stock of goods need to be adequately maintained. However, many government agencies responsible for these tasks are not functioning properly,” Prof Dr Mustafizur Rahman said.
Agencies that monitor the market
There are three ministries and 11 agencies of the government to monitor the market of products.
They are the Ministry of Commerce, Ministry of Food, Ministry of Fisheries and Livestock, Directorate of National Consumer Rights Protection, Department of Agricultural Marketing, TCB, Bangladesh Standards and Testing Institution (BSTI), city corporations, Bangladesh Competition Commission, Bangladesh Trade and Tariff Commission, Bangladesh Food Safety Authority, district administration and Bangladesh Police.
They take initiative during Ramadan or when prices skyrocket. While some efforts are made, these isolated actions do not yield significant results.
Executive Director of the South Asian Network on Economic Modeling (SANEM) and Professor of the Economics Department of Dhaka University Dr Selim Raihan said: "The government seems to have no control over what is happening in the market.”
Bangladesh Competition Commission Chairman Pradip Ranjan Chakraborty said: "Each of our organizations has different mandates. We take action against those who disrupt the competitiveness of products in the market. It's a quasi-judicial institution.”
In this regard, CAB Vice President SM Nazer Hossain said: "There are numerous issues within the legal framework. Various organizations operate under different laws. However, the Directorate of National Consumer Rights Protection lacks jurisdiction over certain products."
The holy month of Ramadan began in Bangladesh on Tuesday.
