Dhaka : Prices of essentials : High season, govt steps bring relief
Prices of essential commodities in Dhaka have dropped in the past week, providing relief to low- and middle-income families. Key items like soybean oil, palm oil, potatoes, onions, and sugar saw price reductions due to increased supply and lower demand. However, broiler chicken prices rose. Government measures, such as reduced VAT on imports and market monitoring, have contributed to stabilizing prices. Although some commodities are cheaper, concerns remain about rice prices.
Prices of essential commodities in Dhaka’s markets have dropped over the past week, bringing much-needed relief to low- and middle-income families.
According to traders, consumers are benefiting from the ongoing production season of certain commodities, various government measures, and enhanced market monitoring.
A visit to several kitchen markets in the capital, including in Pallabi’s Duaripara, Mirpur-1, Farmgate, and Karwan Bazar, yesterday revealed that the prices of soybean oil, palm oil, potatoes, local onions, sugar, eggs, and various vegetables have come down.
However, the prices of broiler chicken, a major source of protein for the masses, have risen.
Mohammad Ali, a wholesale and retail trader at Mirpur-1 kitchen market, explained that the drop in prices of several essentials was due to higher supply and lower demand. “This has brought some relief to consumers. When prices are high, we must answer many questions from buyers and sometimes even face harsh comments.”
In the same market, shopper Mizanur Rahman mentioned he bought soybean oil for Tk 165 per litre yesterday, down from Tk 170 just 10 days ago. Similarly, he purchased potatoes at Tk 25 per kg eight days ago, but the price dropped to Tk 20 per kg yesterday.
He was also able to buy four eggs for Tk 40, which was Tk 4 less than before. “The market situation is much better now compared to the week before Ramadan. If the government can sustain this trend, it will bring significant relief to the people.”
Meanwhile, data from the state-run Trading Corporation of Bangladesh also shows that prices have come down over the past week.
The price of a one-litre bottle of soybean oil decreased by 9.22 percent, palm oil by one percent, potatoes by four percent, local onions by 5.88 percent, local garlic by 25 percent, ginger by 6.25 percent, sugar by 3.29 percent, and a set of four eggs by 2.35 percent.
On March 19, the price of a litre of soybean oil ranged from Tk 157 to Tk 168, compared to Tk 174 to Tk 184 a week ago. One litre palm oil sold for Tk 145 to Tk 153, compared to Tk 146 to Tk 155 a week earlier, the data showed.
However, the price of broiler chicken has increased by 2.56 percent, and is now being sold for Tk 190 to Tk 210 per kg.
Potatoes were being sold for Tk 18 to Tk 30 per kg, whereas a week ago, the price ranged from Tk 20 to Tk 30. Additionally, the price of sugar per kg was Tk 115 to Tk 120 on March 19, compared to Tk 118 to Tk 125 a week ago.
Abul Hashem, a wholesaler in Dhaka’s Moulvibazar, reiterated that the supply of soybean oil, palm oil, and sugar has increased, while demand has decreased, resulting in reduced prices.
Hashem, also the president of Bangladesh Sugar Traders’ Association, said the government had reduced customs duties and taxes on soybean and palm oil imports in two phases, as well as for sugar imports.
Since October 17, the interim government slashed VAT on imports of soybean and palm oil twice to five percent from 15. It also removed VAT entirely at the production and trading stages of the highly import-based commodities. As a result, import cost of edible oil fell from around Tk 18 to Tk 7 per kg, according to stakeholders.
The National Board of Revenue on October 17 also reduced the specific duty for refined sugar imports by 25 percent to Tk 4,500 per tonne to encourage imports and bring down the prices in the domestic market.
The cut in the specific duty for import of refined sugar came a week after the NBR halved the regulatory duty on sugar imports to 15 percent from 30 percent.
Meanwhile, the Directorate of National Consumer Rights Protection is conducting regular market monitoring activities in Dhaka and across the country to prevent counterfeit and adulterated products, as well as to ensure stable prices and a steady supply of essential commodities, including potatoes, onions, rice, lentils, sugar, and edible oil.
“The government is more effectively monitoring the market this year compared to previous years, which has also contributed to the drop in prices,” said Hashem, who is also the general secretary of Bangladesh Edible Oil Wholesalers Association.
Mohammad Amanat Ullah, a wholesaler at the Tejgaon Egg Market, explained that the demand for many egg-based products declines during Ramadan, leading to lower sales and a subsequent drop in prices. However, he added, this situation has caused significant losses for many farmers.
Mostafa Kamal, a vegetable retailer in Karwan Bazar, one of Dhaka’s largest kitchen markets, said the prices of some vegetables, such as eggplants, chillies, cucumbers, and tomatoes, have fallen.
Currently, the price of one kilogram of eggplants ranges from Tk 60 to Tk 90, which was about Tk 20 higher last week. Cucumbers are being sold for Tk 40 to Tk 50 per kg, a Tk 10-20 decrease, he said.
“Additionally, the price of tomatoes is Tk 20 to Tk 25 per kg, and green chillies are Tk 50 to Tk 60 per kg. Due to the season, the prices of most vegetables have remained stable.”
Biswajit Saha, director of corporate and regulatory affairs at City Group, a leading commodity importer and processor, stated that they source soybean and palm oil from Argentina and Brazil.
“Delays at Argentine ports caused oil tankers, originally scheduled to arrive in early February, to reach Bangladesh only in the last week of the month. This disrupted the supply chain and pushed prices upward.”
However, he noted that soon after the start of Ramadan, fresh supplies entered the market, leading to a gradual decline in prices.
Taslim Shahriar, senior assistant general manager at Meghna Group of Industries, another commodity importer and processor, also said the market has sufficient supply to meet the demand, which is why the prices are declining.
On March 19, at a seminar in the capital, Commerce Adviser Sk Bashir Uddin said the market had seen some relief with regard to prices of essentials.
He noted that the main issue was supply-related, and efforts had been made to restore stability in the market, with coordination among the National Board of Revenue, the Directorate of National Consumer Rights Protection, the commerce ministry and other agencies. “But currently, I still see a problem with the price of rice.”
To read more about Edible Oil News continue reading Agriinsite.com
Source : Bangi News
