Ramadan items already costlier
The price of the most-consumed items during Ramadan such as chickpeas, dried peas and dates has increased in the wholesale markets in Dhaka and Chattogram due to a supply shortage, two months before the fasting month begins.
Traders and importers say the prices of most products have been stable in the international market for the last few months.
However, the import of these products has fallen due to the increase in the US dollar rate and the complexity of opening letters of credit (LCs). As a result, the supply of the essential items in the market has dropped, driving up their prices, they say.
At the Khatunganj wholesale market, one of the country's largest commodity hubs, the price of chickpea has gone up by Tk 450 per maund (37.3 kilogrammes) in a month. The item is now selling at Tk 2,950 to Tk 3,300 per maund.
Similarly, dried peas now cost Tk 1,850 to Tk 2,200 per maund, a spike of Tk 200-Tk 220.
The price of dates has increased by Tk 10 to Tk 100 per kg. Depending on varieties, the most popular item consumed during Ramadan is selling at Tk 130 to Tk 900 per kg, traders say.
Retailers are selling chickpeas, dried peas and dates at prices that are Tk 5 to Tk 15 higher than the wholesale rates per kg.
At least five retail and kitchen markets, including those in Kazir Deuri, Karnaphuli Market, and Chawkbazar in Chattogram, saw a lower supply of all kinds of products compared to demand.
In the retail markets in Dhaka and Chattogram, chickpeas are now being sold at Tk 90-92 per kg.
Masud Mia, owner of Bhai Bhai General Store in Karwan Bazar, says the price of chickpeas and peas has increased by Tk 3-5 per kg.
"Ramadan is still two months away. If the upward trend of the price continues, it may be difficult to bring it down in the coming days."
In Dhaka's Mirpur no. 1 kitchen market and Mohammadpur Town Hall market, it was also found that chickpeas and peas are being sold at a higher price.
Aslam Bhuiyan, a fruit retailer in Karwan Bazar, one of the biggest kitchen markets in Bangladesh, says a regular quality date that was priced at Tk 120 per kg a week ago is now being sold at Tk 130.
The price of good quality dates has gone up by Tk 100 to 300 in a span of a week.
"Due to the escalated price of the dollar and the supply shortage, the price may go up further," Bhuiyan warned.
The American greenback has appreciated by about 25 per cent against the taka in the past one year as the foreign currency reserves of Bangladesh have depleted owing to escalated imports.
Owing to the dollar shortage, businesses are finding it difficult to open LCs to buy items from international markets.
Shafi Mahmud, president of the Bangladesh Dal Babosayee Samity, a platform of businesses involved in the trading of lentils, claimed that the demand was lower currently than the supply.
"Ramadan is approaching but businesses are already facing trouble in opening LCs due to the dollar shortage. If the dollar crunch is not sorted out, the price will increase a lot during Ramadan."
Abdul Hakim, a commodity importer in the Khatunganj wholesale market, says the import process usually begins three months before Ramadan.
"However, a huge amount of goods has been stuck at the port due to the complexity in opening and settlement of LCs on time. As a result, there has already been a tendency among a section of traders to stockpile goods to make higher profits during Ramadan."
Alam Hossain, a proprietor of Alam Store in the Chawkbazar market, says apart from Ramadan, the demand for chickpeas and peas is always there.
"The prices of the items usually go up 15 days before Ramadan. Now, the prices have begun to rise two months before the fasting month begins. This is largely because of the supply shortage."
Any price control mechanism will not work if imports don't return to normalcy, he added.