Prices of lentil and sugar increased 40 per cent and 25.35 per cent respectively in the local market in the last one year even though global prices of such goods have decreased.
The data have been obtained from a Bangladesh Trade and Tariff Commission (BTTC) report on supply and price situation of essential items.
It said currently the country's annual demand of widely-consumed red lentil is 0.5 million tonnes. Around 65 per cent of the domestic demand is met through import and the rest is fulfilled by local production.
The report suggested fixing maximum retail prices (MRP) of the lentil and sugar according to production costs of the two commodities.
It also recommended taking action by the Directorate of National Consumer Rights Protection (DNCRP) and district and upzila level monitoring teams if any trader sells such items above the rates to be fixed by the government. Besides, the commission also suggested fixing profit rates at the marketing level.
Bangladesh imported over 0.2 million tonnes of lentils in the last seven months of this year. Now, the country has a stock of around 0.38 million tonnes of the commodity which is more than the present demand.
According to the report, the lentil price has decreased by more than 3.10 per cent in the global market. The lentil price stood at US$ 534.2 per tonne in the international market on July 15 last which was $ 551.13 one year ago.
However, prices of large varieties of lentils have decreased slightly in the country's kitchen markets now.
On the other hand, more than 1.07 million tonnes of crude sugar was imported from January to July this year.
In the global market, one tonne crude sugar's price was US $405.21 until August 15, 2022. The price was $403.22 in the same period of 2021.
Some 98 per cent sugar demands of the country are met through imports.
Meanwhile, the notable increase in lentil and sugar prices in the domestic market in the last one year has enhanced sufferings of the common people who had already dug deep into their pockets to meet the rising cost of living triggered by price hike of other essentials, including staple rice, wheat or flour and edible oil.
Traders claimed that rising import costs of lentil and sugar shot up the prices in the local market. Besides, the upward trend in dollar's price and the Russia-Ukraine war also impacted the market.
A senior official, seeking anonymity, said that currently, different business groups are dominating lentil and sugar markets in the country.
The government is considering fixing lentil and sugar prices to rein in surging prices of the essentials in the kitchen market, the official said, adding that the issue is now at discussion level.
"As part of the move, the Ministry of Commerce (MoC) is now analysing local and international issues in this connection."
Now, coarse, medium and small varieties of lentils are being sold at Tk 110, Tk 130 and Tk 135 per kg respectively in the country's kitchen market, according a data provided by the Trading Corporation of Bangladesh or TCB.
The TCB also said that sugar is being retailed at Tk 90 a kg in the market.
But during a visit to different kitchen markets, it was discovered that the two commodities were being sold at prices above the rates claimed by the state trading arm.
On the other hand, flour price shot up again, posting an all-time high of Tk 74 a kilo on Friday as finer flour or 'maida' saw a further Tk 3.0-6.0 hike a kg.
Trading sources said coarse flour or 'atta' in branded packets retailed at maximum Tk 65 a kg the same day.
Flour prices are rising at a time when the global price of wheat has marked a notable decline in the past three months in a row.
Yet, leading industry owners say this reduction can hardly make any comfort for the pricey dollar.
Branded maida was sold at Tk 70-74 a kg, loose at Tk 60-66, branded atta Tk 60-65 a kg and loose atta at Tk 52-Tk 56 a kg in the groceries on Friday.
The Trading Corporation of Bangladesh (TCB) data shows an 8.0-10 per cent hike in flour prices in a week, 12-28 per cent in a month and 52-68 per cent in a year.
Gulzar Ali, a grocer near Mukti Cinema Hall in Rayerbazar, said after reaching its peak last May, flour prices almost remained static while loose products even showed a slight drop by Tk 1.0-2.0 a kg.
But the price started rising again from five days ago, he told the FE.
Loose atta was sold at Tk 1,800 a maund (37.32 kg) at Moulvibazar wholesale market in Dhaka city which was Tk 1,580-1,620 even 10 days ago, Mr Ali said.
According to the grocer, prices of branded products have also witnessed a hike again as maximum retail price of 'maida' per kilo has been set at Tk 74.
Companies are not supplying two-kilo packets. "We have some old ones which are being traded at Tk 145 per two-kg packet," he added.
TK Group director Shafiul Ather Taslim said dollar's appreciation by above 30 per cent, key global market closures and diesel price hike have been discouraging private millers to import the item in large volumes.
Although global prices, especially of European and North American markets, have declined, high freight charge and costly dollar are forcing traders to import in lower amounts.
Mr Taslim said companies have reviewed prices by Tk 1.0-2.0 a kg to minimise losses.
According to food ministry, Bangladesh brought in a decade-low import of wheat last fiscal year as it dropped to just 4.0-million tonnes.
A total of 97,000 tonnes of wheat have been imported in the first one-and-a-half months (July-August 14) of this fiscal against normal imports of 0.6-million tonnes during the period, it said.
The ministry has also failed to procure 0.1-million tonnes of wheat it targeted to purchase from the local market amid fuel costs, according to sources.
The country has a demand for 8.0-million tonnes of wheat but it produces only 1.1-million tonnes. The rest amount is imported from abroad.
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