Prices of essentials: Rains, supply dearth cause spike

The prices of rice, eggs, broiler chicken, soybean oil, palm oil, sugar and vegetables have increased significantly in Dhaka due to a supply shortage and incessant rain.

Vegetable prices have increased by Tk 20 to Tk 40 per kg, while broiler chicken has become dearer by Tk 20 per kg and is selling for Tk 180 to Tk 190 per kg. The price of a dozen brown eggs has soared by Tk 15 to Tk 175.

• Green chilli prices up by Tk 60 a kg
• Broiler chicken up by Tk 20 a kg
• Vegetables costing Tk 20 to Tk 40 more

Mohammad Amanat Ullah, president of the Tejgaon Egg Merchants' Association, which accounts for a major portion of eggs supplied in the capital, and Kayser Ahmed, managing director of Diamond Egg, one of the country's largest egg producers, cited a mismatch in demand and supply for the escalating price of eggs.

There was a drop in the production of eggs due to recent floods and high temperatures, they said.

Potatoes were selling for Tk 50-60 per kg yesterday, up from Tk 50-55 last week. Sugar was selling for Tk 135 per kg against the last week's price of Tk 130.

The price of green chillies has gone up to Tk 360-400 a kag, up from the Tk 300-360.

A kg of brinjal is selling for Tk 60-100, up from last week's Tk 60-80. The pointed gourd is selling for Tk Tk 60-70 a kg, up from last week Tk 50-60.

Yardlong bean is selling for Tk 80-100 a kg, up from last week's Tk 70-80.

Noor A Alam, a vegetable wholesaler in Karwan Bazar who sources his fresh produce from Manikganj district, said many of the vegetable fields have been damaged by the rain. Besides, there is a labour crisis.

So there is a supply shortage: he brought seven tonnes of vegetables last week, down from his usual 15 tonnes.

Loose soybean oil is selling for Tk 170-180 per kg, up from Tk 165-170 last week. Loose palm oil is selling for Tk 155-160 a kg, up from Tk 140-145 last week.

The price of palm oil per maund in the wholesale market has increased from Tk 4,850 to Tk 6,000 in the last week, said Abul Hossain, a wholesale trader at Khatunganj's in Chittagong, a wholesale hub for essential commodities.

The price of soybean oil has increased from Tk 6,000 to Tk 6,200 a maund, he said.

The conflict in the Middle East has affected the international oil market and this has also affected the local retail market, said Taslim Shahriar, deputy general manager of the Meghna Group of Industries, one of the leading importers and processors of commodities.

Apart from this, the production of global palm oil has also decreased this year, he said.

In the last week, the price of a sack of medium-sized rice weighing 50 kg has increased by Tk 50, said Nirod Baran Saha, president of the Paddy and Rice Stockists and Wholesalers' Association in Naogaon.

Due to the end of the season, the price of paddy has increased slightly in the market, he said.

The recent past government has not played any effective role in keeping the prices of essentials bearable and the current government is also not paying attention to the issue, said Billal Hossain, who came to buy groceries at the capital's Kawran Bazar kitchen market.

"It is very disappointing," he said.

However, on paper, inflation eased in September, according to data from the Bangladesh Bureau of Statistics.

Around 38 percent of low-income households were food insecure in August as essential commodity prices dropped slightly after the interim government took office on August 8, according to the World Food Programme.