Rains, no compliance with directives new recipe for high prices of kitchen essentials

Business Desk :
As the rain patters down across the country, submerging roads, the fallout is being felt in markets – both wholesale and retail.

The prices of essentials continue to climb, with the Ministry of Commerce’s efforts to fix prices, complemented by drives and stern warnings, failing to have any impact.

As the rains continue, the crops are bearing the brunt of the effect, resulting in dwindling supplies and even further price shocks.

Milon Hossain, a shopkeeper of Karwan Bazar, takes stock of the green chilli he has brought for sale.

The rains have kept customers away.

But the steep prices have only driven them off further.

The price of the vegetables has been fluctuating for almost two weeks, almost doubling. Chilli is being sold at Tk240 to Tk220 per kg at the retail level in Moghbazar.

And is it being sold at Tk180 per kg in wholesale at Karwan Bazar.

Milon says the green chilli tree dies when rainwater accumulates. As recent rainfall has increased, supply has decreased.

On the one hand, green chilis imported from India are being sold more in the market.

Rabiul Islam, a retailer in Nayatola area, said that he bought green chilli for Tk170 at wholesale from Karwan Bazar.

“Now I am selling 250 grams of green chili for Tk60,” he added.

But rain isn’t the only factor.

A lack of monitoring, amid various reasons for a supply crunch, has led to pantries becoming more of a drain on the wallet than before.

On 14 September, the commerce ministry fixed the price of eggs at Tk12 a piece, potatoes at Tk35-36 per kg and local onions at Tk64-65 kg, but retailers are not complying.

Eggs are being sold at Tk12.50 each, and potatoes at Tk45-50 a kg.

Mohammad Helal, a wholesaler at Karwan Bazar, said, “The price of onion has increased by Tk10 per kg in a week.

We are selling onion at a wholesale rate of Tk90 per kg, which was Tk80 last week.”

Nurul Amin, another retailer at Nayatola area, said onions are selling at Tk95 per kg, eggs at Tk12.5 each and potatoes at Tk50 per kg.

“We are buying at high prices so we are selling at high prices too.

If the wholesale price is reduced, we could also sell at low prices,” Nurul said.

According to data from the Trading Corporation of Bangladesh (TCB), onion price increased by 112% and potato price by 70% in a year.

The price of domestic onions was Tk35-45 per kg a year ago, which increased by 112.5% to Tk80-90.

Meanwhile, potato was sold at Tk25-30 per kg a year ago, which increased by 72.73% to Tk45-50.

According to TCB, consumers are not able to buy potatoes and onions at the price set by the government.

And then there are the syndicates which are dictating terms in the poultry market.

Another form of protein is thus being made unattainable.

Broiler chicken price jumps again, soars by Tk20 in a week Mohammad Fazal had purchased a broiler chicken at Tk200 per kilogramme from a kitchen market at Mogbazar’s Noyatola.

Only last week it had been Tk180 per kg.

He tried to haggle at first, but it was a lost cause.

“The prices of various commodities are increasing every week. It seems like no one is monitoring the market,” Fazal said.

This correspondent visited several kitchen markets in Karwan Bazar and Moghbazar areas and noticed the same situation, with the exception being an even higher price for broiler chicken.

Although those were selling for Tk180-185 per kg last week, prices had shot up to Tk200-205.

Vendors chalked down the higher prices to a fall in supply.

“I bought at a wholesale rate of Tk190 per kg, which was Tk169 last week,” said Mohammad Sohail, a shopkeeper at the Bhai Bandhu Desi Murgi House at Karwan Bazar.

Another seller, Mohammad Iqbal, mentioned that the supply had decreased due to the rain.

“Moreover, the price of chicks has increased, which is why broiler chicken is being sold at a price of Tk20 higher than last week,” Iqbal further added.

While speaking, Bangladesh Poultry Association (BPA) President Sumon Hawladar said, “If the prices of one-day-old chicks and poultry feed do not decrease, the prices of broiler chicken will increase further.”

He highlighted a significant hike in the price of one-day-old chicks, which surged from Tk35 to Tk52 within the past two months.

Blaming corporate entities for controlling the market through syndicates and engaging in contract farming, the BPA president said, “These entities dictate the prices, and farmers have no choice but to sell chickens at the rates they specify.”

Sumon said the government needs to regulate the prices by importing chicks and poultry feed.

“By doing so, production costs will decrease, leading to lower chicken prices in the market,” he added.

He also highlighted rural farmers are selling chickens at a loss.

“In rural areas, chickens are being sold at Tk155 per kg.

However, the production cost per kilogram is Tk170-175.”

When asked why rural farmers are selling chickens at a loss, Sumon said chickens will sell for Tk40 per kg more in the market than what they are sold for in rural areas.

“Rural farmers cannot get a higher price than this in the market because of certain syndicates,” he said.

Earlier in August, the price of broiler chicken in the markets of the capital had soared by Tk25-30 a kg in the span of a week, reaching Tk185-190 a kg.

In that month, the Trading Corporation of Bangladesh had estimated that the price of broiler eggs increased by about 10% and chicken by more than 12% in a month.

The surge came after the Ministry of Fisheries and Livestock approved the production cost of broiler chickens at Tk170-175 per kg, which was around Tk140 a year ago.

Soon after the cost of production was hiked, broiler chicken prices jumped from Tk160 per kg to Tk180-Tk190.

Industry insiders said the prices of eggs and chicken were low during Eid al-Adha because of low demand.

Many had to sell these products at prices below the cost of production. Around 40,000 layer farms and more than 30,000 broiler farms have been permanently closed in the last three years, they said. Due to this, production has decreased compared to demand.

Demand has normalised, but production costs remain high, they said.

The extreme heat and heavy load shedding outside Dhaka also increased the mortality rate of chickens, heavily disrupting production.