Bangladesh : Rising commodity prices worsen hardships for Dhaka’s low-income families
In Dhaka, despite an abundant supply of winter vegetables, prices remain high, disappointing many consumers. While costs for potatoes, onions, and eggs have dropped, soybean oil prices have surged, causing concern. Low-income families, like those in Kallyanpur slums, continue to struggle, with some relying on subsidized goods through government programs. Though winter vegetables are more affordable, the overall cost of living, especially for items like oil and meat, remains a significant burden. The government is working to stabilize prices and ensure sufficient supply.
While commodity markets brim with winter vegetables, many consumers in Dhaka say prices remain higher than expected despite increased supply and lower transport costs due to presumably fewer scopes for extortion.
Standing at Kallyanpur’s new kitchen market, Mohammad Sifat, a recent university graduate seeking employment, expressed his disappointment to this correspondent.
He said “The market is full of winter vegetables, but the prices haven’t dropped accordingly. New potatoes still cost Tk90 per kg, and beans are Tk60 per kg. With reduced import duties and less transport extortion [bribes and tolls], we expect prices to drop further.”
“We expect more from the current government,” he added.
Living in a shared room with three others, Sifat manages on a tight budget. “Our daily meals cost around Tk70 each. Expenses are rising while I’m still unemployed. How much can my family send?” he questioned.
Nearby, in the Kallyanpur slum, Niru Taj was cooking cauliflower in a small tin-shed home when this correspondent went there to learn how they are faring.
She fumed when asked about her opinion regarding the soybean oil price hike, adding, rather jokingly, that she doesn’t use oil anymore to cook, she boils or eats it raw.
“I came to Dhaka from Bhola 25 years ago after river erosion destroyed everything. I worked in a garment factory but left last year due to poor eyesight. Now, my husband’s daily labour earnings barely sustain us,” she said.
Niru shared that her family of four spends about Tk500 daily on food, relying mostly on lentils and vegetables. “Fish is a rare luxury, usually pangas or tilapia twice a month. Broiler chicken, now Tk190 per kg, is even rarer as it requires a lot of spices and cooking oil,” she lamented, adding that rising vegetable prices, even in winter, strain their limited budget.
However, the Trading Corporation of Bangladesh (TCB) family card provides some relief by allowing her to buy essentials like rice and oil at subsidised rates.
Lipi Akter, another resident of the slum, said she lacks access to the TCB card and struggles even more.
“Most days, we eat dried fish [low-grade varieties usually of discarded small shrimps], vegetables, and lentils. We can’t afford big fish or beef. I bought a small tilapia yesterday [Monday] for Tk200 per kg,” she said.
Lipi works in six households, earning Tk6,000 a month, while her husband works as a rickshaw puller and part-time construction worker. Despite their combined income, covering monthly expenses, including Tk8,000 for their son’s madrasa fees, is a constant battle.
State of kitchen markets
Consumer goods markets in major cities have witnessed a mixed trend this week as prices of onions, potatoes, and eggs fell while soybean oil saw a significant hike.
Surveys conducted in Chattogram’s Kazir Dewri and Dhaka’s Kallyanpur, Hatirpool, and Karwan Bazar kitchen markets revealed notable changes in staple prices.
In the markets, pangas fish was selling at Tk200 per kg, katla at Tk 350–380, and koi at Tk250–280. Shing fish was priced at Tk450–500 per kg, pabda at Tk400, and rui at Tk350–360.
Beef was Tk750 per kg, while broiler chicken was Tk180–190 per kg.
Meanwhile, prices for BR-28 rice dropped by Tk4 per kg this week, with the new crop selling at Tk60 per kg, according to Ali Hossain, a sales assistant at Yasin General Store.
Farid Uddin Ahmed, president of the Chattogram Rice Mill Owners’ Association, predicted a potential decrease in rice prices within the next two weeks as supplies of freshly harvested Aman rice increase.
While this offers some relief, many low-income families continue to struggle with the escalating cost of commodities and insufficient income to meet basic needs, Ali opined, mainly referring to the price hike of soybean oil.
Soybean oil prices surge
Soybean oil prices have surged by Tk8 per litre. A one-litre bottle now costs Tk175 despite the maximum retail price printed as Tk167. Similarly, a five-litre bottle is being sold at Tk840–850, but the labelled price is Tk818.
Following the new pricing set on Monday, the supply of edible oil in stores has increased. However, bottled oil with the new price tags has yet to hit the market. Instead, oil in older packaging is being sold at the new rates.
Merchants attributed the hike in soybean oil prices to international market fluctuations and logistical challenges.
Nurul Absar, a grocery shop owner in Chattogram, stated that import duty waivers on certain goods have helped stabilise or reduce prices for some essentials. However, edible oils continue to be affected by global pricing trends.
Regarding the oil price discrepancy, Karwan Bazar vendor Md Riyad explained, “We had stocked oil at higher prices along with other goods like flour and tea. Selling at the labelled price would result in losses.”
Winter vegetables have become more affordable due to increased supply. In Chattogram markets, eggplants were selling for Tk50–70 per kg, cauliflower for Tk40–50 per piece, cabbage Tk30–40 per piece, beans Tk60–80 per kg, and gourds Tk30–40 per piece.
Two weeks ago, these items were priced Tk10–20 higher per kilogramme.
However, consumers were seen frustrated at the price of one of the staples, potatoes.
Though the price of new potatoes dropped by Tk20–30, now priced at Tk80–90 per kg, it was still very high according to most shoppers at the kitchen markets.
Prices of old potatoes decreased by Tk10 per kg to Tk70.
According to data from the Trading Corporation of Bangladesh (TCB), a year ago, potatoes were priced at Tk45-55 per kg during this period.
Each year, potato prices tend to increase slightly before the arrival of new harvests in November.
In 2022, the maximum price of potatoes was Tk25 per kg, compared to Tk28 for a kg in 2021. However, during the same period in 2020, the price of potatoes in the country reached Tk50 per kg.
Shafiqul Alam, press secretary to the chief adviser, acknowledged the challenges in controlling market prices.
At a press briefing yesterday, he emphasised government vigilance in consumer protection and maintaining the supply-demand balance.
“The government is engaging with stakeholders in Brazil and Malaysia to ensure adequate edible oil supply and stabilise prices,” he said.
Shafiqul Alam stated that the government is making every effort to control the market and to reinforce price monitoring, the government is planning to establish a dedicated commission to oversee market trends and address price irregularities.
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Source : The Business Standard
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