Rains, disregarded directives, untamed syndicates drive up kitchen essential prices

Prices of essentials in the capital's kitchen markets continue to rise at both the wholesale and retail levels, despite government efforts to regulate the prices of certain items such as eggs, potatoes, and onions.

The persistent rain throughout the country over the past two days has exacerbated the situation for consumers, leading to diminishing supplies and an even more severe price shock.

The latest addition to a more expensive pantry has been green chilli, which has also seen its price soar.

The essential item is being sold at Tk240 to Tk220 per kg at the retail level in Moghbazar. It is being sold at Tk180 per kg wholesale at Karwan Bazar.

Milon Hossain, a shopkeeper of Karwan Bazar, says the green chilli tree dies when rainwater accumulates. As rainfall has recently increased, supply has decreased.

Traders say green chilli imported from India are being sold more in the market.

Rabiul Islam, a retailer in Moghbazar's Nayatola area, said he bought green chilli for Tk170 at wholesale from Karwan Bazar.

"Now I am selling 250 grams of green chilli for Tk60," he added.

However, rain is not the only factor. A lack of monitoring, amid various reasons for a supply crunch, has led to pantries becoming more of a drain on the wallet than before.

On 14 September, the commerce ministry fixed the price of eggs at Tk12 a piece, potatoes at Tk35-Tk36 per kg and local onions at Tk64-Tk65 per kg, but retailers are not complying.

Eggs are being sold at Tk12.50 each, and potatoes at Tk45-Tk50 a kg.

Mohammad Helal, a wholesaler at Karwan Bazar, said, "The price of onions has increased by Tk10 per kg in a week. We are selling onions at a wholesale rate of Tk90 per kg, which was Tk80 last week."

Nurul Amin, owner of Bepari General Store in Nayatola, Moghbazar, said he is selling the products at higher prices than the government-set prices because he buys them at a higher wholesale price.

According to the Trading Corporation of Bangladesh (TCB), the price of local onions has increased by 112.5% in the past year, from Tk35-Tk45 per kg to Tk80-Tk90 per kg now. Potato prices have also increased by 72.73% in the same period, from Tk25-Tk30 per kg to Tk45-Tk50 per kg.

Broiler chicken price soars by Tk20 in a week

Mohammad Fazal had purchased a broiler chicken at Tk200 per kg from a kitchen market at Moghbazar's Nayatola. Only last week it had been Tk180 per kg.

"The prices of various commodities are increasing every week. It seems like no one is monitoring the market," Fazal said.

This correspondent visited several kitchen markets in Karwan Bazar and Moghbazar areas and noticed the same situation, with the exception being an even higher price for broiler chicken.

Although those were selling for Tk180-Tk185 per kg last week, prices had shot up to Tk200-Tk205.

Vendors chalked down the higher prices to a fall in supply.

"Today, I bought at a wholesale rate of Tk190 per kg, which was Tk169 last week," said Mohammad Sohail, a shopkeeper at the Bhai Bandhu Desi Murgi House at Karwan Bazar.

Another seller, Mohammad Iqbal, mentioned that the supply had decreased due to the rain.

"Moreover, the price of chicks has increased, which is why broiler chicken is being sold for Tk20 higher than last week," Iqbal further added.

Speaking to The Business Standard, Bangladesh Poultry Association (BPA) President Sumon Hawladar said, "If the prices of one-day-old chicks and poultry feed do not decrease, the prices of broiler chicken will increase further."

He highlighted a significant hike in the price of one-day-old chicks, which surged from Tk35 to Tk52 within the past two months.

Blaming corporate entities for controlling the market through syndicates and engaging in contract farming, the BPA president said, "These entities dictate the prices, and farmers have no choice but to sell chickens at the rates they specify."

Sumon said the government needs to regulate the prices by importing chicks and poultry feed.

He also highlighted the fact that rural farmers are selling chickens at a loss.

"In rural areas, chickens are being sold at Tk155 per kg. However, the production cost per kilogram is Tk170-Tk175."

When asked why rural farmers are selling chickens at a loss, Sumon said chickens will sell for Tk40 per kg more in the market than what they are sold for in rural areas.

"Rural farmers cannot get a higher price than this in the market because of certain syndicates," he said.