Cigarette Market Hit by Syndicate-Driven Price Hike
Collected Photo
Prices have started rising in Bangladesh’s markets even before the new national budget officially takes effect. Although the upcoming fiscal year is set to begin on July 1, traders have already pushed up prices, with alleged syndicates taking advantage of the transition period to raise profits.
The most alarming situation has been observed in the tobacco market. Following the budget announcement of higher cigarette prices, syndicates have become active, with companies and wholesalers reportedly restricting supply to create an artificial shortage. As a result, retail prices of all cigarette brands have already increased.
Consumers are effectively paying higher prices before the new rates officially take effect. Retailers say they are forced to charge more as wholesalers are already selling at elevated prices.
Typically, price hikes are quickly reflected in the market once a budget signals tax increase. However, products that were supposed to become cheaper under tax or duty reductions have shown no price relief so far.
A market survey shows that goods listed for price cuts remain unchanged. Sellers argue that prices cannot be reduced until existing high-cost stock is sold out. However, the same traders reportedly implement price increases immediately, even when old stock remains.
Angry consumers say price hikes do not wait for the budget cycle, but price reductions often take months. They blame weak market monitoring for allowing syndicates to exploit consumers.
“Cigarette prices are now completely unregulated. We hear a new rate will come in a few days. Prices started rising from early June. A pack that used to cost Tk 182 now costs Tk 210. We have no control over profit or loss; we sell at whatever price we buy. People will keep buying as they always do,” said Hamid, a cigarette vendor in Kuril Bishwa Road.
Economists and market analysts say such practices occur every year during the gap between budget announcements and implementation. They warn that without stronger market monitoring and strict enforcement by the National Consumer Rights Protection Directorate, public suffering will increase. Consumers have demanded strict legal action against syndicates involved in creating artificial shortages, particularly in the cigarette market.
