Retail market manipulation in the name of fuel prices

The capital’s market for daily essentials has become unstable again following the increase in fuel prices. Although the actual cost of wholesale and long-distance transportation has risen slightly, prices are increasing several times over in neighborhoods and retail markets. While the transportation cost of goods from wholesale markets and through long distance trucks rises by 20 to 30 paisha per kilogram, consumers are being charged an additional Tk 10 to Tk 30 for the same products by the time they reach retail markets. An investigation found that prices of rice, lentils, vegetables, eggs and meat have seen renewed increases in the wholesale and retail markets of Karwan Bazar, Mirpur and Jatrabari, mainly due to the influence of syndicates and middlemen.

According to information from truck drivers traveling to Dhaka from the northern region, truck fares have increased by Tk 2,000 to Tk 3,000 following the rise in fuel prices. When vegetables or rice are transported in a truck with a capacity of 10,000 kilograms, the additional cost per kilogram is a maximum of 20 to 30 paisha. The reality is different. By the time the products reach consumers, prices are increasing several times over under the pretext of higher transportation and labor costs and through multiple transactions by wholesalers.

Instability in the vegetable and rice markets: The increase in the cost of transporting vegetables and food products by truck from production areas to wholesale markets in the capital is being fully passed on to ordinary consumers. Retail market prices of vegetables were found to have increased by Tk 15 to Tk 30 per kilogram compared with last week. Potatoes that sold for Tk 22 to Tk 25 a few days ago are now selling for Tk 25 to Tk 30. Pointed gourd has risen to Tk 70 per kilogram. Long eggplant is selling for Tk 100 to Tk 110. Round eggplant is selling for Tk 150 and okra and ridge gourd are selling for Tk 65 to Tk 75. The green chili market is the most expensive, with the price jumping to Tk 240 to Tk 260 per kilogram. Prices of other vegetables are also rising. Beans are selling for Tk 200 per kilogram, compared with Tk 160 to Tk 170 previously. Tomatoes are selling for Tk 100, compared with Tk 80 to Tk 90 previously. Cucumbers are selling for Tk 60. Bitter gourd at Tk 70. Bottle gourd at Tk 80 and radish at Tk 60 per kilogram. In addition, sponge gourd is selling for Tk 70. Yard long beans for Tk 80 and wax gourd for Tk 60 each.

Rice and other essentials: Wholesalers have increased the price of 50 kg sacks of rice by Tk 150 to Tk 300 citing higher transportation costs. Medium quality BR28 and Paijam rice are now selling for Tk 62 to Tk 66 per kilogram while coarse Swarna rice is selling for Tk 56 to Tk 58.

The egg and poultry markets are showing a similar trend. Citing higher farm feed and transportation costs, the price of a dozen brown eggs has increased to Tk 160 to Tk 165. Broiler chicken is selling for Tk 190 to Tk 200 per kilogram and Sonali chicken for Tk 310 to Tk 330.

Vegetable traders Kamal and Parvez Ali said they are being forced to raise prices because of higher product prices at wholesale markets as well as increased transportation and labor costs from farmers to wholesalers. However, buyers Mohammad Rakib and Faisal said it is impossible for ordinary people with limited incomes to cope with the way prices of all products are being increased under the pretext of higher fuel prices.

Shafiqul Islam earns Tk 500 to Tk 600 a day by driving a rickshaw in the Mirpur area. Although he was previously able to manage his household with this income, a large portion of his earnings is now being spent on rice alone. He has had to take loans to manage household expenses. He said, “When fuel prices rise, rich people do not suffer. People like us who are poor suffer. A quarter of eggs cannot be found for less than Tk 50 now. I stopped buying green chilies long ago. We used to cook two dishes before. Now we have to eat just one dish.”

Nazmul Hasan, a resident of Jatrabari and a junior officer at a private bank, is struggling to support his four-member family on a salary of Tk 35,000. He came to shop at Karwan Bazar hoping to save money and said he was in trouble managing rent, transportation costs and grocery expenses.

“We middle class people cannot ask anyone for help and we cannot even speak openly about our suffering. I used to spend Tk 8,000 to Tk 9,000 a month on groceries. Now even Tk 12,000 is not enough to cover the expenses. I am being forced to remove fish and meat from our diet,” he said while describing his hardship.