Commodity prices have skyrocketed over the last two months, even after the interim government took charge. Despite public hopes for relief, the cost of essential items has continued to rise, exacerbating the plight of low-income households.
Efforts to dismantle the powerful market syndicates that thrived under the previous government have yet to yield results. Recently, the egg and chicken syndicate has come under scrutiny, but the market remains largely unchecked.
According to market data, prices for essential goods such as eggs, chicken, vegetables, green chilies, edible oil, and sugar have surged. Eggs and green chilies have seen the steepest hikes, while rice, a staple, has also become more expensive. In contrast, only two items, onions and potatoes, have seen slight price reductions.
Soheli Begum, a low-income resident, told Jago News, "We had hoped the new government would take action to control prices, but despite changes in several sectors, the cost of goods continues to rise. We're still struggling."
Data from the Trading Corporation of Bangladesh (TCB) shows that in the two months since the new government assumed office, prices of five essential goods have risen, while only two have fallen. Oil, sugar, eggs, chicken, and rice have all increased, while onions and potatoes have dropped slightly.
For example, the price of coarse rice has gone up by Tk 1 per kg, open soybean oil by Tk 6 per liter, sugar by Tk 3, eggs by Tk 8, and broiler chicken by Tk 20 per kg since August 8. However, the prices of onions and potatoes have decreased by Tk 5 per kg.
Vegetables and green chilies have also become more expensive, with green chilies hitting a peak of Tk 400 per kg. Traders blame continuous rains and seasonal transitions for the price hikes, citing poor vegetable supply and crop damage in the fields.
Vegetable vendor Azahar Ali at Rampura kitchen market said, "Prices are always higher between the summer and winter vegetable seasons, and bad weather has only worsened the situation. The supply chain has been disrupted, driving prices even higher."
The price of rice, which had already risen significantly during the final days of the Awami League government, has shown no signs of stabilising. In fact, the price of coarse rice has increased further by Tk 1 per kg.
Impact of floods
Flooding in August in 11 southern districts has further worsened the situation. The Centre for Policy Dialogue (CPD) estimates the damage from the floods at Tk 14,421 crore, or 1.81% of the national budget for fiscal year 2024-25. The agricultural and forestry sectors were the hardest hit, sustaining losses of Tk 5,169 crore, which has had a direct impact on the price of agricultural products.
Economist Dr Jahangir Alam Khan explained, "Recent floods have significantly affected the prices of goods. Additionally, a temporary restriction on bank debits prevented traders from opening letters of credit, limiting supply. However, despite these challenges, traders are still exploiting the situation by raising prices."
Egg syndicate under fire
The government set prices for eggs and chicken in an effort to control the market, reducing duties and facilitating imports. However, due to manipulations by traders, consumers have not been able to buy these products at the fixed prices.
Broiler chickens are selling for Tk 190–200 per kg, above the government-set price of Tk 179.59 per kg. Similarly, golden chickens are priced at Tk 270–280, despite a fixed price of Tk 269.64 per kg.
The egg market has been particularly unstable, with accusations of price manipulation by a syndicate of corporate traders. The Bangladesh Poultry Association (BPA) reported that corporate entities made an additional Tk 280 crore in just 20 days by inflating egg and chick prices. According to BPA President Suman Howladar, corporate producers sold eggs at inflated prices, driving retail costs up to Tk 14–15 per egg, while broiler chicks have also seen price hikes of Tk 20 each.
Govt response: Price control a priority
Political parties raised concerns about soaring prices during an October 5 dialogue with Chief Adviser Muhammad Yunus. Following the discussion, the government confirmed that controlling commodity prices is a priority.
Special Assistant to the Chief Adviser Mahfuz Alam stated, "From the beginning, the interim government has been working to combat syndicates and extortionists. Law enforcement is gradually restoring order, and we expect to break the grip of these syndicates soon."
Task force for market monitoring
The Ministry of Commerce has now formed a special task force in each district to monitor the market and supply chains of daily necessities. Despite previous measures such as duty exemptions and open imports, the syndicates’ control has persisted. The 10-member task forces will oversee market conditions and report any irregularities.
Economist Dr Zahid Hossain told Jago News, "The government needs to strengthen market monitoring and curtail the traders' excessive profit margins. At the same time, efforts should be made to alleviate the ongoing dollar crisis and create a fair business environment."