No price relief despite good supply

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Prices of essential commodities are yet to come down within the reach of Dhaka city residents, although the market got enough supply over the last one week.

The government initiatives including setting up of Bangladesh Rifles (BDR) operated fair price markets and open market sales (OMS) of essentials also could not affect the soaring prices much, market sources said.

Consumers alleged that the spots for OMS in the city seem to have been chosen without giving enough thought to it, while the amounts of rice at those spots were also quite inadequate compared to the demand of the low income group population.

The government sells 850 kilograms (kg) of rice a day through around 400 OMS spots in the city every alternative day, allowing a consumer to buy 3 kg each day, whose name, address, and signature are taken each time he or she buys from the government open market.

Visiting wholesale and retail markets in the city The Daily Star found that supply of all essential commodities including rice, wheat, and edible oil was adequately steady over the last one week.

Wholesalers in Babu Bazar, Badamtoli, Karwan Bazar and Mohammadpur Krishi Market informed The Daily Star that they have adequate rice in their stocks, but sales have dropped over the last couple of days.

An employee of Akota Rice Agency in Mohammadpur Krishi Market said as consumers started to stock rice at the start of the prices going haywire about 10 days ago, currently the immediate demand is not that high in the city.

Although prices of coarse rice came down by Tk 5 to Tk 6 a kg in the wake of countrywide open market sales, the prices of fine varieties came down negligibly only at the wholesale level without having any positive effect on the retail market, while almost 70 percent of the city’s rice consumers buy the finer varieties.

Prices of packaged flour, all kinds of edible oil, fish, and meat did not see any rise in the last few days while vegetable prices marked a drop, although still remaining much above the prices during the corresponding period of last year.

Locally produced guti, and Indian swarna rice were selling for Tk 29 to Tk 30 a kg yesterday on city retail markets, while a finer variety nazirshail was selling for Tk 38 to Tk 44 a kg. Miniket and lata were priced at Tk 44 and Tk 38 a kg respectively.

Wheat was being sold for Tk 40 to Tk 42 a kg on the retail markets while flour was selling for Tk 42 to Tk 45 a kg.

Lentil was being sold for Tk 65 to Tk 75 a kg, and generic soybean oil was selling for Tk 94 to Tk 100 a litre.

Hilsa fish was selling for Tk 240 to Tk 250 a kg, beef was selling for Tk 180 a kg, and mutton was being sold for Tk 220 to Tk 280 a kg.

Meanwhile, prices of spices saw a steep rise over the last one week due to mainly price hikes on the international market and shortage of supply, the market sources said.

Wholesalers of essentials said usually the prices of agricultural products remain low at this time of the year since it is the harvesting season, but this year the prices went up due to the loss of harvest to the consecutive floods, and devastating Cyclone Sidr.

Moreover, the cost of production went up internationally this year affecting the local market too, they added.

Wholesalers in Mohammadpur Krishi Market said they are now selling rice bought at higher prices earlier, making it impossible for them to sell those at reduced prices right now.

The price of a 2 kg flour pack was stable at Tk 80 to Tk 84 yesterday compared to the price of Tk 74 to Tk 78 just a week back.

A 5 litre can of soybean oil was also stable at Tk 495 to Tk 505 yesterday, up by around Tk 50 from the price of the last week of December.

Wholesalers suggested further exemptions in duties and taxes on imported staples like rice, wheat, and edible oil for long term curbing of the prices. They also suggested loans on easy terms for agri-producers to help curbing of the prices at the source.

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