Green chilli over Tk 500 per kg in Bangladesh, Tk 21 in India

Despite allowing the import of green chillies from India to rein in the prices, this measure appears to have had limited impact on the market. The price of green chillies in the market was Tk 250 per kg on 25 June when the permission was granted. However, it went up to Tk 480 to Tk 600 per kg in the country yesterday on Saturday. In the meantime, Indian green chillies procured at the price of Tk 21 have also arrived in the country.

On June 25, the Plant Quarantine Wing of the Department of Agriculture Extension, under the Ministry of Agriculture, issued Import Permits (IP) to 44 individuals, allowing them to import a staggering 179 billion tonnes of green chillies. However, according to customs records, only three companies managed to import 38,671 kg of green chillies through the Sonamasjid and Hili land ports on June 26.

A look can be taken at the price of green chillies in India ,and prices in Bangladesh's market after adding duty and profit margin. Import was closed during Eid. The average import cost of the three companies stood at 19 cents or Tk 21per kilogramme.

Alfazuddin and Sons of Chapainawabganj imported green chillies at 24 cents or Tk 26 per kg while Dinajpur's Hakimpur's Satata Banjyolay purchased at 20 cents or Tk 22 and Bogura's BK Traders spent 15 cents or Tk 16 per kg.

The customs duty is set at Tk 32 per kg, resulting in a total price of Tk 53 when combined with the import costs. Additionally, the price reaches Tk 63 when the transportation costs of Tk 10 per kg is included. Considering an estimated profit of Tk 10 per kg in each of the three phases, it adds up to Tk 30. Even if the profit is increased by another Tk 7, the total price per kg still remains below Tk 100.

Commerce minister Tipu Munshi was the chief guest at the division rally for the new Rotary year in Bogura yesterday. When questioned by the media about the soaring prices of green chillies, the minister said that green chilli is an agricultural commodity. He further noted that the Ministry of Agriculture possesses the necessary information regarding production and can shed light on the reasons behind the price surge.

Why delay in import permit?

The Ministry of Agriculture was hesitant to allow the import of green chillies the same way it did during onion imports. This correspondent made multiple attempts to contact agriculture minister Abdur Razzaque and agriculture secretary Wahida Akter by mobile phone, but failed to make contact. They did not respond to the SMS either.

On 14 May, the Ministry of Commerce sent a letter to the Ministry of Agriculture, requesting permission for the import of onions. Unfortunately, the commerce ministry did not pay much attention to this request at the time. However, as the price of onions exceeded Tk 100 per kg, the ministry finally made the decision to import onions on 4 June. Following the import from India, the price of onions gradually decreased.

Chilli, being a product under the agriculture ministry, is not included on the daily commodity list of the commerce ministry. However, despite the soaring prices of green chilli in the market before Eid, reaching Tk 150, 200, and 250 per kg, the agriculture ministry did not make a decision to import.

The import permit (IP) for green chillies was issued on 25 June, merely three days before Eid, when the price had already surpassed Tk 250 per kg. Unfortunately, due to the timing of the import, only one day of importation was possible on June 26, right before the Eid holidays. These holidays concluded on Saturday.

When questioned about the delayed issuance of the import permit (IP), Rezaul Karim, the director of the plant quarantine wing, explained to Prothom Alo, "We have to consider the interests of the farmers as well. It is true that issuing the IP earlier would have been more effective. Unfortunately, due to the Eid holiday, many were unable to import during that time. However, starting from tomorrow (Sunday), the import will begin in full swing, and we anticipate a decline in the price of green chillies.”

Dhaka market

It was seen yesterday in various markets of the capital, green chillies are being bought and sold at the retail level at the rate of Tk 480 to Tk 600 per kg, which was less than Tk 400 a few days before Eid.

Retailer of Mohammadpur Town Hall Market, Mansoor bought green chillies at the price of Tk 2,200 per 5-kg from Karwan Bazar last night. The cost per kg stood at Tk 440. He sold this chilli at Tk 480 the following morning.

Lutfar Rahman, a retail trader in the same market, bought 5-kg chilli from Karwan Bazaar on Friday at Tk 2,500. Yesterday he sold this chilli at Tk 550 per kg. Lutfar Rahman said he could not sell the product in loss.

As a result of the skyrocketing prices, consumers have significantly reduced their purchases of green chillies. Many individuals are now only buying 50 to 100 grams of chillies at a time. Rafiul Alam, a local resident who visited Kathal Bagan in the capital to purchase green chillies, told Prothom Alo, saying, "Due to the sudden surge in chilli prices, I was compelled to buy only 100 grams. If the price decreases, then I will consider buying more."

Is poor yield responsible?

Bogura correspondent of Prothom Alo said that a farmer Abdul Alim,55, of Pirgacha village in Bogura Sadar, got Tk 480 by selling one kg of green chillies at Bogura's Mahasthan market yesterday.

Pabna correspondent said that Santhia Upazila is one of the country's highest green chilli producing areas. Farmers and traders blamed the poor yield for the record prices. They said that the estimated cost of production in one bigha is Tk 15,000 to Tk 20,000. This increases when land is leased by farmers for cultivation. The yield this season was very low due to severe drought.

Prothom Alo’s Jashore correspondent said that despite the cultivation of chilli in 590 hectares of land in the district, the production was staggeringly low in Jashore due to severe drought. Ainal Mandal of Rahmatpur village of Sadar Upazila said, "I cultivated in 9 decimals of land but unfortunately, I couldn't obtain any yield due to the harsh drought."

Manikganj correspondent of Prothom Alo said that on the previous day of Eid, green chillies were sold at Tk 380 to Tk 400 per kg in the retail market but yesterday it was sold at Tk 580 to Tk 600. Farmers and agriculture officials say that the yield has decreased due to the severe heat. The involvement of middlemen is another contributing factor to the price escalation.