Commodity prices still high

Staff Reporter :
The prices of essential commodities are still high disregarding the government’s efforts to reduce them.

As per experts and economists view, syndicates are behind this surge of commodity prices.

They also pointed out the ineffective governmental surveillance methods.

They suggested that the essential commodities market is controlled by a coalition of a few groups of companies. The lack of competition in the market is the key factor driving up prices of daily essentials.

Most of the commodities maintained high prices, but vegetables, potatoes, and onions saw an unparalleled increase in November and December 2023, coinciding with the full harvesting season. Even this February, these high prices continue.

Businesses highlighted that 37 percent appreciation of the dollar and a 300 percent increase in gas prices over the year as major contributors to the commodity price increases.

Economists attribute the illogical price spikes, particularly in rice, to market failures stemming from oligopolies and syndicates manipulating prices, despite the conclusion of the Aman harvesting season in December.

As per the data from the state-owned Trading Corporation of Bangladesh (TCB), the upward trend in prices for rice, flour, lentils, gram, edible oil, sugar, broiler chicken, beef, and eggs in the country’s kitchen markets over the past several months.

Specifically, the price of local onions surged by nearly 160 per cent in January 2024 compared to the same month in 2023.

The TCB data showed that the price of potatoes surged by 63.64 per cent over the past several months, reaching Tk 40-50 per kilogram.

Besides, the prices of broiler chicken and eggs also experienced significant rises, up by 25 pc and 9.41 pc respectively.

This data also showed substantial increases in the prices of garlic, which surged by nearly 85 per cent, and ginger, which rose by over 60 per cent over the recent months.

Meanwhile, winter vegetable prices have reduced a little but consumers are not happy with the slight decrease.

It was found at Karwan Bazar kitchen market, potato, tomato, and carrot prices usually remain between Tk 20 to 40 per kg during this time of season in past years. But these items are now selling at Tk 40 to 70 per kg.

These additional prices have become a burden for lower and fixed-income groups. Thus decreasing the prices of vegetables by Tk 10 to 20 per kg is not bringing any relief to the consumers.

However, almost all winter vegetables were selling at Tk 40 to 70 per kg in the Karwan Bazar on Friday.

On the other hand, discomfort remained in the fish and meat market. Broiler chicken was selling at Tk 200-220 per kg, and Sonaly chicken (Pakistani variety) at Tk 320-340 per kg while the fish prices were also still high.