With Ramadan fast approaching, the supply of essential commodities has increased significantly, leading to a downward trend in wholesale prices at the market.
The surge in imports, aided by government tariff reductions and relaxed LC (Letter of Credit) margins, has bolstered market stability.
Discussions with traders at Khatunganj on Thursday (30 January) revealed that businesses began importing Ramadan essentials four months in advance.
Interim government measures such as reducing the regulatory duty on sugar by 15%, lowering VAT on edible oil by 5%, and stabilising the foreign exchange market have facilitated a greater volume of LC openings by importers.
Consequently, the wholesale prices of various commodities have started to decline, though traders have urged stronger retail market monitoring to ensure consumers benefit from the price adjustments.
Significant Growth in Imports
An analysis of import data from Chattogram port for the first four months (October–January) of the 2023-24 and 2024-25 fiscal years highlights a sharp increase in key commodity imports compared to the previous year.
The import volume has risen by:
- 14,095 tonnes of chickpeas
- 74,449 tonnes of soybean oil
- 221,956 tonnes of lentils
- 4,405 tonnes of onions
- 2,381 tonnes of grapes
- 789 tonnes of cinnamon
- 718 tonnes of cloves
- 38 tonnes of mace
- 20,280 tonnes of garlic
- 117 tonnes of carrots
According to the Chattogram Plant Quarantine Station, in the first four months of the 2024-25 fiscal year, imports of spices and essential food items included:
- 4,132 tonnes of cinnamon
- 1,018 tonnes of cloves
- 88 tonnes of mace
- 51,848 tonnes of garlic
- 6,336 tonnes of onions
- 2,016 tonnes of cumin
- 56 tonnes of nutmeg
- 177 tonnes of black pepper
- 1,978 tonnes of ginger
- 1,198 tonnes of turmeric
- 84,660 tonnes of mustard seeds
- 1,754 tonnes of raisins
Among pulses, imports have included 92,767 tonnes of chickpeas, 367,442 tonnes of lentils, and 85,570 tonnes of red lentils. Meanwhile, 601,996 tonnes of soybean oil have been imported.
In the fruit segment, the country has imported 18,104 tonnes of grapes, 40,008 tonnes of apples, 42,720 tonnes of oranges, 1,688 tonnes of pears, and 12,121 tonnes of dates.
Additionally, from 25 December to 29 January, 88,625 tonnes of rice were imported from India and Myanmar via Chattogram port.
Market Stability Expected
Md Shah Alam, deputy director of the Chattogram Plant Quarantine Station, stated, "January saw a significant surge in commodity imports ahead of Ramadan. With another month to go, we anticipate further increases in February."
Trader Insights
Traders in Khatunganj affirmed that the supply of local and Indian onions remains stable, contributing to a price reduction.
According to Md Idris, General Secretary of the Hamidullah Miah Market Traders’ Welfare Association, "Indian onions have dropped by Tk5 per kg to Tk60, while local onions have declined by Tk10 per kg to Tk40.
The markets for garlic and ginger remain stable, with Chinese garlic selling at Tk205 per kg and Kerala ginger at Tk75 per kg. We expect local onion supplies to increase further during Ramadan, keeping prices in check."
Md Mohiuddin, general secretary of the Chaktai-Khatunganj Aratdar General Traders’ Welfare Association, attributed the increased import activity to improved banking liquidity and a rise in LC openings.
He noted that many essential commodities have already reached Khatunganj, stabilising prices.
Meanwhile, Md Nizam Uddin, former general secretary of the Pahartali Traders’ Association, observed that rice prices, which had become unmanageable, have now started to decline by Tk50–100 per sack.
"With ample supply, we anticipate further reductions in rice prices," he added.
Retail Prices Remain High
Despite the wholesale price reductions, retail markets are yet to reflect these changes.
Consumers continue to pay over Tk70 per kg for quality rice, while onions are selling at Tk60–65 per kg.
Bottled soybean oil is priced at Tk175 per litre, with palm oil super at Tk180 per litre.
Fruit prices remain steep, with apples at Tk220 per kg and oranges ranging between Tk350 and 380 per kg. Meanwhile, premium chickpeas are selling at Tk120 per kg, garlic at Tk240 per kg, and sugar at Tk125 per kg.
Call for Market Monitoring
SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), remarked, "Despite sufficient imports, traders continue to inflate prices under various pretexts. Unfortunately, we cannot expect this trend to change, as their behaviour remains unchanged. To ensure price stability, regulatory bodies must take proactive measures and engage stakeholders in discussions before the market spirals out of control."
Md Faiz Ullah, deputy director of the Chattogram Divisional Office of the Directorate of National Consumer Rights Protection, assured that market monitoring efforts are ongoing and will be intensified ahead of Ramadan to curb price manipulation.
As the month of Ramadan draws near, while the wholesale market reflects a more optimistic outlook, consumers are yet to witness a corresponding relief in retail prices.
With further imports expected, the onus now lies on regulatory authorities to ensure that the benefits of increased supply trickle down to consumers.
