Price of one product, egg, has come down while those of four, rice, edible oil, sugar and onion, increased in just one week. The prices of the four everyday essentials have risen at a time when the people are already reeling under the burden of price hike of different products.
Though the government has waved the duty tariff on the products to decrease the prices, the result is this is yet to become visible. The traders said the goods with waived duty tariff are yet to arrive in the market. Besides, the prices have been on the rise in the international market.
On the other hand, according to the persons familiar with the markets , supply of products in the market has to be boosted along with cutting duty tariff. Then it would affect the market. They also stressed on market monitoring to bring price down the prices to an affordable level.
Rice price on the rise
The low income people come under pressure the most when the price of rice goes up. The price of rice has already been quite high in the country for the last two to three years.
The price of semi-fine and fine rice has increased by Tk 1-3 per Kg in the retail market this week. The price of semi-fine rice has increased the most, which is bought mostly by the low income people.
Visiting the retail market of Karwan Bazar and Mohammadpur Krishi Market in Dhaka this Monday it was found that semi-fine BRRI-28 rice was selling for Tk 61-62 per Kg, which sold for Tk 58-59 last week. Meanwhile, BRRI-29 rice can be bought for Tk 62-64 per Kg. The price of this rice has also increased by Tk 3.
Among the fine rice, the price of Miniket and Najirshail varieties has increased by Tk 1-2 per Kg. Miniket rice of different brands like Rashid and Diamond are selling for Tk 70-72 per Kg while premium quality Najirshail is selling for Tk 80 or more. However, the price of coarse rice remained stable at Tk 52-55 per Kg.
Retailers from different markets buy rice from the wholesalers at Karwan Bazar and Krishi Market to sell. The price is also a bit lower at the retailers in these two markets. Compared to that the price is even higher in other markets and retail shops of the capital.
Md Nazim Uddin of Bengal Rice Agency from Krishi Market said that the mill owners have increased the price of rice saying that the supply of paddy is low.
It’s Aman season going on now. There are reports of Aman paddy being destroyed from the untimely excessive rainfall and flood this season. Wholesalers say there looms a risk of price hike in rice if the production during Aman season is low.
Meanwhile, the government reduced the duty tax on rice import two days ago. It had been stated from the national Board of Revenue (NBR) that the price of rice will decrease by Tk 14.4 per Kg at the import level. However, the import of rice has not started yet.
People concerning the rice market are saying that the import of rice has to be increased considering the situation so that there is no crisis in the market. And the mill owners cannot take advantage of the fear of shortage.
Oil, sugar and onion
The government has provided duty exemption on import of edible oil and sugar to keep the price under control. However, that has not had any impact on the market. The price of these two commodities has increased instead. The price of sugar increased by Tk 3-4 per Kg. A kg of loose sugar is being sold for Tk 130-135 varying from the markets and shops.
The government reduced the duty tax n sugar import twice, on 8 October and 17 October. After that it was stated on behalf of NBR that the cost of importing sugar will reduce by about Tk 11 per Kg. However, the sellers are saying that the sugar imported with the duty exemption has not arrived in the market yet.
The duty on edible oil import was also reduced on 17 October. After the traders proposed to hike the price, the government reduced the duty tax so that there’s no need to increase the price.
Government agency TCB however reports that the price of loose soybean and palm oils has increased by Tk 1-2 per litre within a week. Loose soybean oil is selling for Tk 153-156 per litre while palm oil is selling for Tk 148-151 in the market. The price of packaged oil has not increased though.
The price of onion has increased by Tk 10-15 per Kg in the last two days. Local varieties of onion are selling for Tk 120-130 while the price of imported onion is somewhat less at Tk 110-150.
Raja Hossain, a wholesale dealer at Boalmari wholsale market in Santhia upazila of Pabna one of the largest trading hub of onion in the country told Prothom Alo that the price of imported onion has increased. After being imported from India, a Kg of onion is selling for more than Tk 100 on the wholesale level. So, the farmers have increased the price of locally produced onion as well.
He also stated that the farmers are running out of their storage of onion. The early varieties of local onions were supposed to arrive in the market during this time of the year. But the farmers were delayed in sowing these varieties of onion due to the floods and rains. This too is a reason for the price hike.
Meanwhile, import of egg has started after the duty exemption. The government is monitoring the market as well. The price of egg has reduced from this. Brown coloured farm chicken eggs were sold for Tk 145-150 per dozen at the retail level this Monday. The same eggs were selling for Tk 180 per dozen a few days back.
Eggs imported with duty exemption from India started being unloaded at Benapole land port in Jashore from Monday. According to sources of the importers from what it cost it would be possible to sell eggs for Tk 9 apiece at the wholesale level.
‘Why would it increase so much’
The inflation rate in the country has been around 10 per cent for long. The food inflation is even higher. One of the reasons for people’s resentment towards the ousted Awami League government was the price of daily commodities. The new government is trying to reduce the price. The untimely rain and floods are being blamed for the sudden price hike.
Meanwhile, the prices of chicken, different varieties of fish and vegetables are still high in the market. Even potato is selling for Tk 55-60 per Kg. Despite duty exemption from the government on potato import, the price has not reduced that much.
Salma Alam, an employee of a private company who lives in Mohammadpur area of the capital told Prothom Alo, “We get that the prices of different commodities like vegetables, onion and chicken can increase a bit because of the floods. But, why would it increase so much? We are seeing various initiatives from the government in an attempt to reduce the price, but not finding any such benefits of that in the market.”