United News of Bangladesh

With inflation already near record levels and traders raising the prices of essential commodities ahead of Ramadan, low- and middle-income families fear greater struggles as the fasting month approaches. The interim government has assured that it has taken measures to ensure a steady supply of essential commodities and prevent syndicate-created market instability during the holy month. Prices are usually increased during Ramadan almost every year using various excuses and the past experiences raise no hope among general people despite the government's assurance. Commerce Adviser Sk. Bashir Uddin told UNB that various initiatives have been taken to keep the prices stable and ensure adequate stock of essentials ahead of Ramadan and Eid. "The government is making every effort to control prices during Ramadan. Strict monitoring will be ensured to keep the market free of syndicates," the adviser said. No change in duties until Ramadan ends: Finance Adviser The government is ready to maintain the supply of essential items such as dates, chickpeas, lentils and other staples during Ramadan. “The food market will remain stable and prices are expected to decrease." Adviser Bashir Uddin said he warned traders against unethical practices and urged them to act responsibly and help keep the market stable during Ramadan. The government’s main aim is to protect the sanctity of Ramadan and create a market environment that brings relief to consumers, he added. Meanwhile, Chief Adviser Dr Muhammad Yunus has instructed field-level officials to prioritise the smooth supply of goods and keep the prices of essentials within people’s purchasing capacity during the fasting month, he said. The government has taken some steps, including market monitoring, syndicate control and ensuring uninterrupted supply of essentials, he said. Controlling Syndicates The adviser said monitoring has been intensified to prevent artificial crises and price hikes caused by syndicates of traders. Keep prices under control during Ramadan: CA to officials The Directorate of National Consumer Rights Protection (DNCRP) and other law enforcement agencies will work to check unethical practices. Uninterrupted Supply Adequate stocks of essential items such as rice, lentils, sugar, cooking oil, onions and garlic have been ensured and measures have been taken to prevent any disruptions in import and supply chains. Daily Market Monitoring Daily surveillance will be enhanced to detect and penalise unscrupulous traders and instant action will be taken against those attempting to create artificial crises. The adviser said consumers have been urged to avoid panic buying and purchase goods at fair prices. Expansion of TCB Activities The distribution of essentials through the Trading Corporation of Bangladesh (TCB) at subsidised  rates have been scaled up to ensure availability of goods throughout Ramadan. Govt trying to keep prices of essentials tolerable till Ramadan: Finance Adviser Special Task Force A special task force under the Ministry of Commerce has been formed to monitor market trends and prevent artificial crises. According to Commerce Ministry officials, the imports of essential commodities such as chickpeas, lentils, dates, sugar and soybean oil have been expedited to ensure steady supply until Ramadan. The government has also planned to establish storages to control potato prices. Inflation Bangladesh’s economy in 2024 faced major challenges as rampant inflation not only eroded purchasing power but also overshadowed the country’s progress in other areas. Commodity prices to stay below normal during Ramadan: Commerce Adviser The inflation rate in Bangladesh reached an alarming average of 11.38% in November 2024, marking the highest level in over a decade. It hit 11.66 percent in July, the highest at least since the 2010-11 fiscal year, driven mainly by food prices reflecting the worsening of the purchasing capacity of people. This sharp increase was fuelled primarily by escalating food prices, which constitute a significant portion of household expenditure and the Consumer Price Index (CPI). Food inflation, in particular, hovered around 12%-14% for most of the year, as prices of essentials like rice, cooking oil, and vegetables surged. Non-food inflation also rose steadily, driven by increased transportation costs, higher utility bills, and imported goods becoming more expensive due to currency depreciation.

Acknowledging the suffering of general people due to rice price hike, Commerce Adviser Sk. Bashir Uddin has said that the government cut a 60 percent duty on rice import to keep the local market stable. He said this while talking to reporters after a meeting with his Turkey counterpart Prof Dr Ömer Bolat at the Secretariat on Thursday. Asked about the preparedness ahead of the Ramadan to keep commodities at tolerable levels, he said, “We are prepared overall with the Ramadan and taking several initiatives on the rice market at this moment. We are relaxing the import while the duty on rice import was about 63 percent; we have reduced it to 3 percent.” The Ministry of Food has been importing several lakh tonnes of rice from India, Pakistan and Myanmar, said the adviser. Bashir Uddin assured that there would be no crisis of rice till April as a full season of Aman was going on now. There has been no inconsistency of any product so far. Read: Government aims to stabilize rice market, ensure trader support: Commerce Adviser Seeking cooperation from the reporters to take actions against syndicates who manipulate the rice market, he said that there was no crisis of the rice market now but the rice price hiked slightly due to the weather, flood and other issues. Warning of strict action against the manipulators, he hoped that the rice market would be stable soon. He said distribution of rice to 63 lakh families who hold TCB smart cards would begin this week and 50 lakh families would also get rice at lower price under the Food-friendly Programme. Replying to a query, adviser Bashir Uddin said they scrapped 37 lakh smart cards due to corruption as one more member from the same family managed cards through forgery. Read more: Government to import rice, LNG to meet domestic demand "We want to add another 37 lakh cards. If it’s possible to increase it from one crore by bringing transparency in procurement and marketing, we will do that too,” he said.

The consumer market surveillance team of the Directorate of National Consumers' Rights Protection (DNCRP) and a special task force have been conducting raids against market manipulation and the price hike of goods. On Wednesday, raids were carried out in all divisions and districts of the country, including Dhaka Metropolitan area, to stabilize the prices of daily necessities such as onions, sugar, and edible oil, ensuring a normal supply, according to a press release. In the Dhaka Metropolitan Area, market surveillance activities were conducted in different areas of the city by six teams led by six officers from the department. A total of 100 organisations were fined a total of Tk 518,500 during a campaign conducted by 45 teams of the Department across 35 districts of the country, read the release. ACC to start probe against ‘big fish’ soon: New Commissioner Representatives from both government and private sector organisations, including district and upazila administrations, were present during the raids. All these efforts, including the DNCRP raids, will continue nationwide to protect consumer rights, it added.  

Bangladesh imported 6,520.21 metric tonnes (MT) of rice from India through Bhomra Land Port in Satkhira over the past 8 days that authorities hope would help stabilise the country’s rice market. The import began on November 13 after the withdrawal of customs duties on rice imports by the National Board of Revenue (NBR). According to sources at the port authority, after the duty withdrawal, 12 companies approved by the Ministry of Food started importing through Bhomra. Read: 131MT rice imported from India through Hili Land Port Among the imports, Dhaka-based Old Paltan Majumdar Agrotech International imported around 1,861.47 MT of rice in four shipments. These included 770 MT on November 13, 368.5 MT on November 16, 380.97 MT on November 17, and 342 MT on November 18. Mukul Enterprise from Kalai of Satkhira, imported 300 MT in three shipments: 100 MT each on November 13, 14, and 17. Ismail Hossain Milon from Jhikargacha of Jashore, imported 100 MT on November 13, while Abul Monsur Khan from Bogura brought in a total of 500 MT across three dates: 150 MT on November 14 and 16, and 200 MT on November 18. Abu Musa, general secretary of Bhomra Customs C&F Agents Association, said the Indian government had imposed a ban on rice exports to Bangladesh on July 20, 2023. Read: Rice import from India through Benapole port resumes after 2 years Recently the country lifted the ban allowing export to Bangladesh, he said. Abul Kalam Azad, deputy commissioner of Bhomra Land Customs Station, 6,520.21 MT of rice was imported from India through the port in eight days from November 13. If this trend continues, rice imports through this port will increase in the future, he said.

Environment Syeda Rizwana Hasan on Tuesday said the government is determined to set an example in controlling air, noise, plastic, and river pollution. “Our efforts are focused on ensuring a cleaner and healthier environment for the people of Bangladesh,” she said. The environment adviser made this remark when Ambassador of the Netherlands to Bangladesh Irma van Dueren paid a courtesy visit to her at the Secretariat. The meeting discussed strengthening collaboration between Bangladesh and the Netherlands in the areas of environmental sustainability, water resource management, and pollution control. Both sides discussed ongoing initiatives and future cooperation to address the growing challenges of climate change and environmental degradation in Bangladesh, said a press release. Rizwana emphasized the importance of community involvement in environmental initiatives, particularly in river conservation. “Rivers are the lifeline of our ecosystem, and any sustainable cleanup programme must involve local communities. Their active participation is key to ensuring long-term success in preserving our natural resources,” she added. Read more: Price hikes: Seven businesses fined in market monitoring drive She also mentioned the government's ongoing enforcement of the polythene shopping bag ban. The Dutch Ambassador expressed her country's willingness to assist Bangladesh in its efforts to improve water resource management and mitigate the effects of climate change. In the meeting, both sides expressed optimism about future collaborations to enhance environmental conservation and water resource management in Bangladesh. The Dutch government’s expertise in water management and Bangladesh’s commitment to sustainable development were recognised as strong foundations for continued partnership. The environment secretary and the water resources secretary, director general of Bangladesh Water Development Board, among others, were present at the meeting.

Students from the Anti-Discrimination Movement have launched protests against the rising market prices in Bangladesh, demanding the resignation of three members of the Bangladesh Competition Commission, including acting chairman Salma Akhtar. On Monday, students from the University of Dhaka and several private universities gathered at the commission's Eskaton office, but authorities had locked the gates in anticipation of their protest. Today, they held another rally at Burak Tower in the capital, expressing dissatisfaction with previous discussions on price control. Magura residents in distress as prices of daily essentials skyrocket The protesters accuse the commission of failing to control market syndicates, which has led to soaring prices and raised concerns about the government's credibility. Farhan Dinar, a student representative, expressed frustration over the lack of engagement from the commission, saying they would continue their protests until a resolution is reached. As the protests escalated, Farida Yasmin, the adviser on fisheries and livestock, summoned seven student representatives to the ministry for further discussions. The outcome of the meeting is yet to be announced.

Residents of Magura are increasingly distressed as the prices of essential commodities have surged alarmingly across the district. The sudden spike has left many struggling to make ends meet, raising widespread concerns about the impact on daily life. In recent weeks, prices of various essential items, including vegetables, eggs, and chillies, have escalated dramatically. The price of raw chillies has soared to Tk 500 per kg, an incredible increase from just Tk 100 to Tk 120 per kg two weeks ago.  Similarly, farm eggs are now selling at a record high of Tk 180 per dozen, up from Tk 150 a week earlier. Local markets have felt the impact of these price hikes, making it increasingly difficult for families, especially those from middle and lower-middle-class households, to afford basic groceries. The prices of potatoes, bitter gourds, and brinjals have also surged, with potatoes now costing Tk 60 per kilogram, pointed gourds at Tk 80 per kg, and brinjals reaching Tk 120 per kg. Read: Drives conducted in Dhaka’s kitchen markets to monitor prices of essentials “This is becoming unbearable. Everything costs more, yet our incomes remain unchanged. It’s a struggle to buy groceries,” lamented a local buyer. The situation is dire, with some families reportedly leaving markets empty-handed due to soaring prices.  “Many come to the market without buying anything and leave disappointed, while others are forced to pay inflated prices,” another resident added. Market control officials attribute the crisis to excessive rainfall disrupting supply chains, and rising wholesale prices.  “Due to heavy rainfall and increased wholesale prices, the costs of raw chilies and vegetables are rising daily,” stated an official. They expressed concern that if this trend continues, prices may escalate further. Rising transport costs are also contributing to the increases, they noted. The repercussions of these price surges are evident, with many vendors reporting a decline in sales. “I used to sell out my stock easily, but now many customers leave without making a purchase,” said one seller, highlighting the impact on local businesses. Read more: Special task force formed to monitor prices of daily essentials The markets have become nearly devoid of small fish, with what little remains priced beyond the reach of average buyers. Larger fish are also expensive, making them inaccessible to many. Even during the peak hilsa season, prices remain high, with almost every vegetable priced at 80 to 120 takas. Meanwhile, although the prices of beef, goat, and both local and broiler chicken have not surged, the costs of rice and oil have increased. District market control officer Mamunul Islam confirmed that excessive rainfall and rising wholesale prices are driving up the costs of raw chilies and vegetables. He noted the potential for further price increases if the situation continues, exacerbated by rising transport costs.  Read more: Essentials’ prices up in Khulna kitchen markets

Traders have proposed increasing the prices of edible oil by Tk 10 per litre as the tax exemption deadline on it expired on April 15. Bangladesh Vegetables Oil Refiners' and Vanaspati Manufacturer's Association (BVORVMFA) sent a letter to the senior secretary of the commerce ministry in this regard on Monday. The letter was issued by executive officer of BVORVMFA Nurul Islam Mollah. Dhaka district receives lion's share of remittances so far in current fiscal: BB Report The letter stated that as tax exemption on the import of raw materials and production of edible expired on April 15 so it will be supplied at the prices fixed before the exemption of VAT. As per new rate, a litre bottle of soybean oil will be sold at Tk 173, while 5 litre bottle at Tk 845 and a litre palm oil at Tk 132. In February the National Board of Revenue reduced  the Value Added Tax on refined and crude (non-refined) soybean and palm oil to 10 percent from 15 percent. However, state minister for commerce Ahasanul Islam Titu at a meet the press at Dhaka Reporters ‘Unity on Tuesday said there is no scope to hike prices of edible oil. All factories have paid March salaries and Eid bonuses: BGMEA President He said the edible oil price can be adjusted with the international market rate but it will take time. The state minister also said the price hike would be considered on the import of new shipment of the edible oil.

The runaway price hike during this year’s Ramadan is proving particularly difficult for the middle to lower-middle class households in urban areas, for whom a Tk10-15,000 spike in the monthly spend is a big ask. These are the families that despite living in or near areas where supershops are proliferating, still prefer to buy from the local kaachabazars (kitchen markets). And the principal breadwinner, usually the father, often prefers to visit the bazar and make the purchases himself.  One of them, Kazi Shariful Haque, a job holder at a private local company, told UNB that in any case one has to spend more on food during Ramadan, despite it being the month for restraint, on the food that is consumed during Iftar and Sehri. Consumption of some items like fruits, beef, and mutton, does come down, he conceded. UNB spoke to Shariful at Kawranbazar, the principal kitchen market in the capital, which he visited just prior to the weekend with a shopping list that contained fruits, vegetables, fish, and chicken, among other things. He shared that in his experience, most items’ prices jumped by Tk10-30 per kg. Fish prices jumped by Tk100 to 150 per kg, chicken jumped by Tk15 to 20 per kg, while chick-pea, lentil, onion, and garlic ginger are among the items that saw prices jump by Tk10 to 30 per kg, since the start of Ramadan. Ramadan: Holiest cities Makkah, Madinah flooded with Umrah visitors Dates are not available at price set by the government, he said, while apples, malta, and some other fruits are selling at Tk300 to 350 per kg - an increase in the price by Tk 50 per kg. Medium-quality dates are selling at Tk800-1000 per kg, he pointed out.  However, Shariful has found that the prices of rice and edible oil are stable for now, but of course household expenses are not limited to the spending at the bazaar only. In almost every sphere, including medicines (health), water rates, gas rates, electricity, house rent, people are having to spend more and more. Bills and prices are squeezing the middle class in cities, especially at the lower end like Shariful, who last received a raise at his company two years ago, and in these two years, inflation has been spiking in the country. Even the company he worked for suffered losses in business in these two years, and it made him perceive a period of gloom for the economy.   Still, it makes him yearn for when the times were good for these very same people, as recently as 2-3 years ago. “In 2021, I could maintain my four-member family in Farmgate, Dhaka along with spending for parents living in the village and even then save a small amount every month. And now I have to maintain family expenditure by drawing on my previous savings,” Shariful voiced his frustration in an annoyed voice. Shariful’s is the common refrain among most shoppers at the city’s kitchen markets these days.  They make up Bangladesh’s ‘squeezed middle’, a term coined by the former leader of the opposition in the UK parliament, Ed Miliband of Labour, in the aftermath of the global financial crisis of 2009.  As Ramadan is about to begin, prices of essentials high in Khulna kitchen markets The Oxford English Dictionary, while choosing it as their ‘Word of the Year’ in 2011, defined it as “the section of society regarded as particularly affected by inflation, wage freezes, and cuts in public spending during a time of economic difficulty, consisting principally of those people on low or middle incomes.” All these conditions are met by the likes of Shariful, and others in his bracket. Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD) told UNB that inflation and randomly fluctuating exchange rates (affecting the price of imported products) have increased the cost of living in the urban areas, as the urban people are depending on supply chains.. In the rural areas, 60 to 70 percent of items consumed by a family are produced on their own land - which is emphatically not the case in the cities. Most of the middle class is even living on rented property. As a result, the price hikes tend to affect urban life more severely, she said. Read more: Industries Minister announces special drive to control standard, prices of goods during Ramadan Dr Fahmida said it was not only the prices of consumer goods - health-related expenditure and utility prices have also increased, confirming the observation by Shariful, and others, that UNB spoke to in Kawranbazar. “Household incomes, mainly salaries, did not increase in the post-Covid period, after having gone down during Covid itself (2020-2022),” Dr Fahmida said. “As a result, jobholders are really bearing the brunt of the price hikes.” Average wage growth remained well below the inflation rate in Bangladesh for the 22nd month straight in November 2023, as per the Bangladesh Bureau of Statistics (BBS), corresponding to the timeline she provided.  Ghulam Rahman, president of the Consumers Association of Bangladesh (CAB), said that the prices of all types of products have increased, whether those items are imported or produced in the country. Although the incomes of jobholders did not increase, their expenses have increased alongside that of others, but this has proven a particular burden for the fixed income groups, he said. He said If prices were hiked “logically and systematically”- presumably meaning adhering to market fundamentals - then this burden would remain manageable. But when it happens arbitrarily, indicating how it happens in Bangladesh, it becomes very hard for the people, said the CAB president.  He advised authorities to pay more attention to whether this is happening, as there are several instances of price gouging, hoarding, etc in the country, and there are laws against these.  Wherever irregularities are found, the perpetrators should be brought under the law, to bring stability to the market, the CAB president urged.  Read more: Commerce ministry fixes prices for dates

In the aftermath of the January 7 national election, the kitchen markets in Khulna have witnessed a substantial hike in the prices of daily essentials, severely impacting middle-class and low-income families. This sudden increase in prices is making it increasingly difficult for these groups to manage their household budgets. Recent market trends show a noticeable rise in the cost of various commodities. In particular, the prices of rice have seen a significant uptick over the past week. Seasonal factors have also led to increased vegetable prices during the winter, and essentials like broiler chicken, flour, pulses, chickpeas, ginger, and garlic are not exempt from this trend. RMG workers in Gazipur demonstrate for wages set by govt, gridlock on Dhaka-Tangail highway Local consumers express a sense of helplessness, feeling like hostages to what appears to be an uncontrollable syndicate. This situation has exacerbated their financial challenges, especially for those struggling to meet daily expenses. Traders attribute this surge in prices to a poor supply chain. However, residents speculate that certain unscrupulous traders are exploiting the post-election period to unjustifiably raise prices. A recent survey of Khulna's kitchen markets revealed the following price points: Miniket rice at Tk 68-70 per kg, BR-28 Paijam variety at Tk 65-66 per kg, and local variety rice at Tk 50-52 per kg. Vegetable prices have also surged, with beans costing Tk 80-100 per kg, cauliflowers and cabbages at Tk 50 each, and eggplant, ridge gourd, and bottle gourd ranging from Tk 80 to Tk 100. The poultry market is not immune to these increases, with broiler chicken now at Tk 220-225 per kg after a Tk 20 increase, and Pakistani chicken at Tk 320-340. Beef prices have also risen, selling at Tk 700 per kg despite authorities setting the price at Tk 650. Karwan Bazar slum fire: Firefighters recover 2 burnt bodies Amirul Islam, a local fish trader, noted that fish prices have escalated by Tk 10-50. Additionally, the cost of chickpeas has jumped from Tk 85-90 to Tk 100-110 per kg, and high-quality pulses are now at Tk 150-160 per kg. Even the price of local onions has risen, now selling at Tk 80-100 per kg, up from the previous Tk 80-90. This alarming price rise in essential commodities is placing significant strain on the residents of Khulna, with the most substantial impact felt by those in the middle and lower economic brackets.