Inside Trade

Government to determine price of 9 essential products

Publish: 10:19 AM, 31 Aug, 2022

Considering the international market price and domestic production and supply situation, the government will decide the price of nine essential products. They are rice, flour, flour, oil, sugar, lentil, egg, cement, rod from now on. It has also been decided to take legal action against those who sell beyond the fixed price announced by the government.

The decision was taken by the Ministry of Commerce in a meeting with the stakeholders regarding the progress of supply, storage and import process of products in the market on Tuesday (August 30). After the meeting, Commerce Minister Tipu Munshi gave this information to the reporters in a briefing.

He said that until now the Tariff Commission used to set the price of edible oil and sugar only. But in recent times the prices of these commodities have skyrocketed, taking advantage of the global instability and appreciation of the dollar in the domestic market. Which should not have happened. The matters have come to the attention of the Ministry of Commerce and to keep it under control, regular operations are being conducted through various organizations including the Directorate of Consumer Rights Protection.

Tipu Munshi said that even though the operation was going on, stability in the market could not be created at the right price in real sense. In such a context, this meeting was held with all the stock holders of the products related to the Ministry of Commerce.

The Minister said that the Bangladesh Trade and Tariff Commission has been given the responsibility to determine what the price of the products should be on an overall basis. They will decide the exact price in the next 15 days after discussing with the concerned holders.

Commerce Secretary Tapan Kanti Ghosh, Bangladesh Trade and Tariff Commission Chairman Mahfuza Akhtar, FBCCI Senior Vice President Mostafa Azad Chowdhury Babu and Chittagong Chamber of Commerce President Mahbubul Alam, Bangladesh Competition Commission Chairman Mofizul Islam, Director General of Consumer Rights Protection Directorate AHM Safikuzzaman along with senior officials of the Ministry of Commerce were present.

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Inside Trade

Market Prices in Disarray

Md. Oliul Islam
Staff Reporter

Publish: 10:00 AM, 15 Oct, 2021

The prices of daily essentials are rising alarmingly. The continuous increase in the prices of everyday products is causing distress in the households of middle and lower-income individuals. Staple items like edible oil, rice, lentils, along with newly added items like onions, flour, chicken, vegetables, and eggs are seeing a hike in their prices. The cost of cooking gas and fuel is also increasing. Shoppers are in a dilemma when they go to the market, unsure of what to buy and what to leave, given the current economic situation.

Faisal Ahmed, a master's student at Jahangirnagar University, resides in Mohammadpur, Dhaka. He has been working at a private institution for the last four years. Whenever he comes to buy daily necessities in Kachabazaar, Mohammadpur Town Hall, he notices the skyrocketing prices. He says, "Last year in April, I had plans for a promotion. But due to the pandemic, it hasn't happened yet. However, the prices of commodities are indeed increasing. There's nothing that costs the same as it did two months ago. I don't know if there's a situation like this elsewhere, but it's happening here for sure."

A teacher at a private institution reveals that he wait for the government's TCB (Trading Corporation of Bangladesh) truck in front of his workplace. From there, he buy daily necessities and take them home. With the prices in the market continuously rising, there seems to be no alternative. Even though institutions have reopened, the impact of the pandemic on the economy has affected parents' financial stability, making it difficult for students to continue their studies. The teacher shares, "My family has four members, and our financial situation has not been great for the past two years. Among all this, household expenses are increasing."

Various vegetable markets and shops in Dhaka reveal that sugar prices have increased by 11%, while flour prices have gone up by 8% to 12%. Onion prices have risen by nearly 50%, and the price of eggs has increased by around 10 taka per dozen. Most vegetables now cost more than 50 taka per kilogram. The price of chicken has also surged. These are just a few examples of price hikes. The prices of various essential goods are also on the rise. For instance, a soap that used to sell for 35 taka for a 100-gram bar a few months ago is now selling for 40 taka. The prices of detergent, toothpaste, coconut oil, and toilet tissue have also increased. Even a familiar brand's pack of tissues, which used to cost 17 taka, now sells for 20 taka.

Exploring the market, we find that winter vegetables like cauliflower are being sold for 120 to 140 taka. Carrots are being sold for 100 to 120 taka, and tomatoes are priced between 120 to 140 taka per kilogram. Radishes and pointed gourds are sold for 50 to 60 taka per kilogram, while bitter gourds are priced between 60 to 80 taka. Ridge gourds are being sold for 80 to 90 taka, and snake gourds are available for 50 to 60 taka.

Similarly, the price of green chilies has risen from 70 taka per kilogram to a whopping 200 taka. Despite the stable price of beef, boiler chicken is being sold at 180 taka per kilogram. Just a month ago, boiler chicken was priced between 120 to 125 taka per kilogram. A dozen farm eggs are being sold for 110 to 120 taka, while in local shops, one egg is being sold for 10 to 11 taka. At the beginning of the previous month, a dozen eggs were available for 90 to 95 taka.

Business owners have stated that generally, there is a shortage of vegetables in September and October. Winter vegetables are expected to arrive in the market soon. Additionally, there have been reports of wild flood causing damage in many areas. Due to this, they mention that vegetable and chicken prices have increased slightly.

Mr. Ali, a vegetable trader in Mohammadpur Town Hall Market, explains that vegetables, from tomatoes to onions, are coming from India. The ongoing Puja festival has driven prices up. He says, "We buy from wholesalers. We make a profit of two to four taka per kilogram, which we use to support our families. While purchasing has decreased on one hand, household expenses are increasing on the other."

Saiful Islam, the owner of a poultry house named Chittagong poultry house, reports that rising prices have affected the business negatively. He states that there are very few customers now, and he open his shop at 7 am in the morning, but now it’s12 pm. He mentions that only one customer visited his shop during this time.

Going to the fish market, it can be seen that roe fish is being sold at 280 to 380 taka per kg. Besides, Mrigel is being sold at Tk 240 to Tk 280, Telapia Tk 160 to Tk 180, Pabda Tk 450 to Tk 500 and Pangash Tk 120 to Tk 160 per kg. As before, Hilsa is being sold at high prices in the market. Large (above one kg) hilsa kg 1100 to 1300 Tk. Medium sized hilsa is being sold at 600 to 800 taka per kg. And the small ones are being sold at 500 to 600 taka per kg. However, it can be said that the price of hilsa remains unchanged over the week.

The price of one kilogram of rice ranges from 50 to 60 Taka. Among these, Miniket is selling at Tk 60, Nazir Shail at Tk 65 to Tk 70 and Golden Rice at Tk 48 per kg. Soybean oil was bought at Tk 145 per liter a month ago, but now the consumer has to spend Tk 5 more and buy it at Tk 150.

Meanwhile, domestic onion is now selling at Tk 70 and Indian onion at Tk 65 per kg in the market. A month ago these prices were 45 taka 38 taka respectively. During the month, desi onion has increased by Tk 25 per kg and Indian onion by Tk 27 per kg. However, according to shopkeepers, the prices of lentils and sugar remain stable. Currently, local lentils are priced at 110 Taka, Indian lentils at 90 Taka, and packaged sugar is being sold at 85 Taka per kilogram.

Business owners are mentioning that the prices of essential products in the international market have increased, and this has had an impact here as well. However, market analysts have a different perspective. They are saying that for many products in the local market, prices are higher than in the international market. In other words, business owners are making more money on many products by charging higher prices in the international market. And this money comes from all of us.

However, many market analysts believe that factors such as disruptions in supply due to the pandemic, reduced production, increased prices of cooking oil, and higher shipping costs, along with prevailing practices in various countries, are responsible for the price hikes this time.

From the poor to the middle class in the TCB Line

When the pandemic is affecting life in various ways, the Trading Corporation of Bangladesh (TCB) has become a lifeline for low-income people. Through TCB dealers, sugar, red lentils, and bottled soybean oil are being sold at subsidized prices at various crowded and important locations in Dhaka city. Alongside those with higher incomes, many middle-class people are also waiting in line to get these products.

A person waiting in line without revealing his name expressed frustration, saying that even though the government claims that price increases do not lead to inflation in the country, I’m not convinced. He asked if the government wants people to suffer from inflation before taking any action. He continued by saying that it is important to have food on the table for development, and on one hand, there is not enough food on the table, while on the other hand, the minister says that there is no possibility of reducing the prices of essential commodities within the next two to three months. Later, it was observed that the businessmen increased the prices further, contrary to what the minister had said.

Asking about how prices of goods increase, market analysts explain that this year, bumper yields have occurred in the country. However, rice prices have still risen. The reason is that there is insufficient rice in the market. So, where did all this rice go? It went into the hands of hoarders and unscrupulous businessmen. As a result, for the past one and a half years, the rice market has been out of control. Furthermore, there is an uncontrollable surge in the price of edible oil due to the international market. Prices have increased in the global market, but they have increased even more in the country's market. Market analysts believe that prices have been artificially increased here as well.

Analysts say that the common people think that development is necessary, but it is even more urgent to survive. If people cannot afford to buy essential items in the market, then development seems meaningless to them. If people suffer from shortages and cannot properly manage their market expenses, then they feel that development is pointless. In these circumstances, the government needs to take a look, especially at the uncontrolled surge in commodity prices. Otherwise, the government's projects, such as the Padma Bridge or the metro rail, may seem worthless to the people.

Market Price Disarray

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Inside Trade

Refiners want Tk 15 per litre soybean oil price hike by tomorrow

Insider Desk

Publish: 12:56 PM, 05 Nov, 2022

Soybean oil price may go up as Bangladesh Tariff Commission (BTC) is considering proposal for hiking edible oil price due to higher production costs.

Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association (BVORBMA), the association of owners of edible oil refining and marketing companies, has submitted a proposal to raise soybean oil price by Tk15 per litre.

The oil refiners argued that traders will count losses due to higher production costs and price hikes in the global market if soybean oil price is not adjusted.

The refiners submitted a letter last Tuesday to Commerce Secretary Tapan Kanti Ghosh, urging the government to readjust the prices by Sunday (tomorrow). The refiners made the proposal a month after lowering soybean oil price by Tk14 a litre.

Chief Executive of BVORBMA, Nurul Islam Molla, told UNB, the situation was described to the commerce secretary.

After a meeting with Salman F Rahman, the prime minister's adviser for private industry and investment on October 3, the association lowered the prices by Tk 14 a litre. The price of a litre of unbottled soybean oil was set at Tk158, a litre bottle at Tk178, and a 5-litre bottle at Tk880.

- UNB

Oil Price Hike Bangladesh

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Inside Trade

Imports fell by 12 percent in September

Insider Desk

Publish: 11:05 AM, 11 Oct, 2022

Imports were expected to fall for several months due to the massive restriction on luxury goods imports. Although the impact is not felt till August, both imports and exports have declined since September.

According to main line operators of foreign vessels, imports fell by 12 percent in September and exports by 16 percent compared to August 2022.

According to the main line operators of foreign vessels, in September 2022, 1 lakh 1 thousand 493 units of import cargo containers arrived at Chittagong port; In August the amount was 1 lakh 14 thousand 920 units. In percentage, imports decreased by 12 percent. The import volume in July was 1 lakh 13 thousand 600 units.

Traders say that the reason for the decrease in imports is that the Board of Revenue has imposed new duties on the import of 135 types of non-essential and luxury goods last May. Along with these products, banks have to pay 100% margin to open a credit card for import of less important products. Which means, traders have to pay 1 crore cash in order to open a credit card of 1 crore Tk. The booking rate of these products abroad has also increased; And the demand in the country has decreased. Overall, the rate of import of goods fell.

Ajmir Hossain Chowdhury, Head of Operations and Logistics of Mediterranean Shipping Company (MSC), said that due to strict opening of credit, volatility in dollar exchange rate and reduced demand, imports have decreased. This trend may last till December to January.

MA Salam, head of the Asian Group and a garment trader, said one of the main reasons for the decline in exports was the disruption of the supply chain due to the Russia-Ukraine war. Also, due to the increase in the price of products, buyers are more interested in everyday products than luxury products across Europe.

However, a director of Bangladesh Shipping Agents Association said that the export rate is low from September-November every year. It happened this time too. Exports increased by 14 percent in September 2022 compared to September 2021. Exports are now higher than in 2019. I am hopeful that exports will start to pick up again from November.

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Inside Trade

New price of 12kg LPG drops by Tk35 to Tk1200

Insider Desk

Publish: 06:52 PM, 02 Oct, 2022

The Bangladesh Energy Regulatory Commission (BERC) on Sunday announced the new price of liquefied petroleum gas for the month of October, a drop of Tk2.91 per kg.

A 12-kg LPG cylinder would now cost Tk1200 (instead of Tk1,235) for retail, according to the revised price.

The prices of LPG for other sizes of cylinders from 5.5 kg to 45 kg will come down rationally, said BERC chairman Abdul Jalil, who announced the new price at a virtual press briefing on Sunday.

As per the announcement, the price of auto gas (LPG used for motor vehicles) was reduced to 55.92 per litre from previous price of Tk 57.55 per litre, down by Tk 1.63 per litre.

The new price will be effective from 6 pm on Sunday (October 2).

Jalil informed that the US Dollar rate was considered at Tk 106.64 in refixing the price of the LPG as private operators import it from Middle East through foreign currency.

He said though the LPG price has substantially come down in the global market, consumers are not getting full advantage of the downward trend due to the high dollar price in the local market.

Last month, the dollar exchange rate was considered Tk104.02

The price of LPG, marketed by state-owned LP Gas Company, will remain as usual as it is locally produced with a market share of less than 5%.

The LPG price went up to the highest Tk1,439 (a 12kg cylinder) in the local market, following the start of the Russia-Ukraine war in February this year.

The LPG price was the lowest at Tk1,225 for a 12kg cylinder in January this year and it witnessed continuous hikes in February, March and April.

LPG Price drop BERC

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12kg LPG price increased by Tk16

Insider Desk

Publish: 12:15 PM, 07 Sep, 2022

The Bangladesh Energy Regulatory Commission (BERC) has increased the price of liquified petroleum gas (LPG) at the consumer level.

The company has increased the price of 12-kg cylinder of LPG by Tk16 and fixed it at Tk1,235.

The BERC announced the hike at a virtual press briefing on Wednesday. BERC Director (Gas) Engineer Mohammad Ali Biswas confirmed the matter.

BERC adjusts LPG prices regularly keeping in mind the international market situation. The state agency usually makes the announcement at the beginning of the month at a virtual press conference.

At the beginning of August, BERC fixed the price of a 12 kg LPG cylinder at Tk 1,219. In that month, the price of 12 kg cylinder decreased by Tk 35.

In July, BERC fixed the price of a 12 kg LPG cylinder at Tk 1,254. And in June it was Tk 1,242.

Earlier, the consumer had to spend Tk 1,335 to buy a 12 kg cylinder in May.

Till April 12, 2021, LPG rates were at the discretion of the companies. BERC announced rates for the first time on April 12.

At that time, it is said that the price of this import-dependent fuel will be based on the price announced by the Saudi state company Aramco.

If the Saudi rate fluctuates, the base price will also fluctuate. Other commissions will remain unchanged. BERC has been announcing LPG rates every month since the announcement.

LPG Price hike

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