The Russian-Ukraine war, production loss of soybean oil in South America, Indian restriction on exports of wheat and sugar and erosion of value of the Bangladeshi Taka against the US dollar have all led to volatility in the local commodity market.
Bankers said that the Taka had dropped over Tk15-16 to the dollar in the last two months on higher import bills, forcing commodity prices to become steeper.
The price of one tonne crude soybean was $1,783 as against $1,819 a month ago. In 2021, it was $1,394.41 meaning there has been a 27.87% rise in price on a year-on-year basis.
Brazil is the main source of soybean oil.
Per litre of soybean oil in the local market is selling at nearly Tk200. A five-litre bottled soybean oil is selling at Tk980, which was close to Tk780 even during Eid-ul-Fitr a few weeks back.
The price of palm oil stood at $1,715 as against $1,690 in the international market a month ago, and $1,157 a back year, showing a 48.23% rise year-on-year.
Wheat cost $528.01 per tonne in the international market, against $487.22 a month ago and $289.91 a year back, showing an 82.13% rise on a year-on basis.
Russia and Ukraine supply nearly 29% of the global demand for wheat, according to Trading Economics.
Moreover, these two countries are the main source of wheat import for Bangladesh.
The market-related organization also said that wheat prices in the world market reached the highest ever level in 14 years amid the ongoing conflict between Russia and Ukraine.
The private sector has imported 2.1 million tonnes to Bangladesh till February, though they import 5.4 million tonnes of wheat every year.
Hasan Jamil, owner of Bismillah Traders at Mirpur, said that the price of packaged and loose flour has increased by Tk10-12 per kg.
As a result, the price difference of wheat and coarse rice has narrowed down.
However, according to the data by the Bangladesh Bureau of Statistics (BBS), the country imported 390,000 tonnes of wheat in fiscal year 2020-21, against 450,000 tonnes in the 2019-20 fiscal.
Sugar prices dropped to $548.75 per tonne as against $565 one month back and $466.15 one year back, showing a 17.72% rise year-on year.
Though sugar prices dropped slightly, erosion of value of Bangladesh taka against US dollars kept the price of the commodity high, according to market sources.
As India decided to impose restrictions on sugar export, the price of loose sugar increased in the retail market by Tk5 to Tk80-85 per kg, which was Tk78-Tk80 just days before the announcement.
Moreover, packaged sugar is being sold at Tk85-95 per kg, often as high as Tk95-Tk100.
Brown sugar, produced by Bangladesh Sugar and Food Industries Corporation (BSFIC), is being sold at Tk110 per kg, although the retail rate is Tk85 per kg.
Rice prices also high
The price of rice is also showing an upward trend in the international market.
It was selling for $467 per tonne as against $437 a month back, but was also selling for less than $502 a year back, a 5.78% year-on-year decline.
Meanwhile, prices of different varieties of rice have risen in the local market despite bumper production.
Onion prices shot up in the international market to $126.23 per tonne as against $129.73 a week ago, $98.18 one month back and $134.64 a year back.
