Agri Biz
Egg prices hikes again
4 days prior, two pairs of brown farmed eggs were sold at Tk 38 in three kitchen markets across Dhaka. Yesterday they were selling for Tk 45.
Strangely, if anyone purchased a dozen eggs, they would have had to pay Tk 120. Yesterday, the same was going for Tk 130.
Consumers in Bangladesh are already facing a difficult time making ends meet for an increase in the prices of essential commodities.
And now eggs, a low-cost source of protein which almost every family tries to include in their diet every day, are eating away a bigger chunk of their budgets.
Between August 18 and August 24, the Directorate of National Consumers Right Protection (DNCRP) conducted raids on establishments involved in the egg trade across the country.
Only then did the prices begin to fall.
However, the relief was short-lived. Prices started increasing again from September 5.
Prices have been increasing over the last four days, confirmed Nurul Alam Shikdar, a retailer in the Pallabi extension area of Mirpur, apprehending that this would continue.
Farmers running large-scale operations alongside wholesalers reason it to be a gap in demand and supply.
They say many farmers suffered losses amid the pandemic lockdowns, when sales dropped while their chickens continued laying eggs. Many could not sustain their business at the time, resulting in an overall decrease in production.
The number of eggs on demand is not being produced every day, claimed Mohammad Amanat Ullah, president of Tejgaon’s egg merchants’ association.
He also claimed that there was no accurate estimate of how many eggs were needed and produced every day.
However, according to the Bangladesh Egg Producers Association, about 3.5 crore to 4 crore eggs are required daily to meet the national demand. Moreover, a large part of the eggs come from farms across the country.
Data from the Department of Livestock Services showed that 2,335 crore eggs were produced in Bangladesh in fiscal year 2021-22, with production more than tripling over the past decade.
With egg trucks not entering Dhaka during this time, a gap was inevitably created between demand and supply, which hiked prices, he said requesting anonymity.
Now, farms have actually reduced their egg output, which has become visible in this month’s price rise, he added.
It currently costs Tk 9.60 to produce an egg that is being sold at Tk 11.25 to the final consumer after being bought and sold three or four times, claimed Moshiur Rahman, managing director of Paragon Poultry.
According to a DNCRP report, major producers in Bangladesh colluded with each other to send the price of eggs to an unprecedented level in the middle of August.
Usually, wholesalers make a profit of 15 paisa to 20 paisa per piece but between August 9 and August 13, they made a profit of Tk 2.70 per egg, the report said.
As a result, the price of eggs shot up by Tk 30 to Tk 40 per dozen to Tk 160 at one point.
Bangladesh Prime Minister Sheikh Hasina has asked all concerned to find a way out to ensure sustainable export growth and explore new global markets for Bangladeshi goods in the wake of the Russia-Ukraine war.
The Prime Minister made the call while speaking at the 11th meeting of the National Committee on Export, at her official residence Ganabhaban in Dhaka on Monday (20 March).
PM said, “Steps will have to be taken to achieve sustainable export growth after analysing situation steamed from the global economic recession due to the war in Ukraine,” she told the 11th meeting regarding export at her official Ganabhaban residence here.
The prime minister also urged all concerned to diversify the export items and explore new markets for those alongside revitalising the local markets.
“A new scope has been created globally to explore new markets for Bangladeshi items due to enhanced demands for goods because of the war in Ukraine. We have to grasp the markets,” she added.
The premier also called for formulating a new export policy for another 4 or 5 years by revising, changing and improving the existing one going to expire by 2024.
She said the new export policy should be adopted by analyzing the ongoing global economic recession, sanctions, counter-sanctions for the war and the challenges and scopes possibly to be created in Bangladesh after the graduation from the LDC by 2026.
Presently, the consumers will have to spend more money than usual in case of purchasing dates and other fruits—two essential items in iftar during Ramadan, due to importers’ difficulty in opening letters of credit (LCs) on time.
Price hike is a most common phenomenon ahead of the month of Ramadan in Bangladesh, and this year even more due to the LC opening crisis.
Already, the price of dates has doubled in the wholesale and retail markets and it will be more expensive ahead of Ramadan, said some businessmen.
The price of all types of dates has hiked in the local markets ranging from Tk 40 to Tk 160 per kg while different fruits range from Tk 30 to Tk 100 per kg.
Some traders said the prices of these essential iftar items will increase further during the month of Ramadan as they are facing difficulties in opening LCs which will push up the prices of dates and fruits.
According to the sources at Trading Corporation of Bangladesh (TCB), the price of dates increased by 20 percent compared to the last year.
Milton, a shop owner in the Baridhara area, said “The price of dates went more expensive in the past month ahead of Ramadan and I was able to purchase a limited amount of dates due to the soaring price of it.
He also feared that the price of dates would be soared further in the month of Ramadan.
Habibur Rahman, a fruit trader said the price of every fruit has increased.
Whatsoever, ajwa variety of dates is being sold at Tk 750-800 which was available at Tk 600-700 last year. Mariam variety of dates is being sold at Tk 800-850 while the premium variety of dates is being sold at Tk 1000-1200 per kg.
According to the statistics of Bangladesh Bank, the import of dates has fallen by almost half compared to the demands of it but during Ramadan the demand for dates is about 50,000 tonnes.
In the past three months, only 22,000 tonnes of dates were imported which is 46 percent less than the last year. However, the authorities concerned related to import dates have opened LC of 29,000 tonnes dates in January, said sources at Bangladesh Bank.
Sirajul Islam, president of Bangladesh Fresh Fruits Importers Association, said the demand for dates increases three to four times during the month of Ramadan. Besides, there is a demand of 50,000-70,000 dates in the country in a year while 40,000-50,000 is needed in Ramadan alone, he said.
Referring to the opening of LC, Sirajul said “This year the traders faced difficulties in opening LCs in time as they had to open it by paying 100% cash margin while it was 5 percent. The small traders are the worst sufferers in opening LCs.”
The dates are being imported from the Middle East and Africa and dates were being stocked five-six months before the Ramadan, he added.
He also said that the price of dates may increase 30 percent in Ramadan due to the dollar crisis and transport cost caused by the fuel price hike.
If the government will take steps in unloading dates in ports on a priority basis, then there will be no instability in the market, said Sirajul.
Contacted, Commerce Minister Tipu Munshi, said “We’ll take necessary steps so that the consumers can purchase dates, the most essential items in iftar, at a tolerable price.”
He also assured of keeping monitoring the market to prevent volatile price hikes of dates.
Issuing a warning, the minister also said strict action will be taken against those involved in increasing the price of dates after creating an artificial crisis.
The state-run Trading Corporation of Bangladesh (TCB) has taken an initiative to sell 6 essential items to some 1 crore low-income groups of families ahead of the holy month of Ramadan.
TCB will start selling 3 essential items – edible oil, sugar, dates and chickpeas and lentils—among such families from Thursday (March 9). These essential items will be sold in two phases. In the first phase selling of the items will start from Thursday across the nation.
Commerce Minister Tipu Munshi will inaugurate the sales of essential items formally through a function at Tejgaon in the capital on Thursday.
The cardholders can buy the six goods at subsidized rates from the TCB’s specific sales points and dealers’ outlets. Any cardholder can buy 2 litres of soybean oil, 2 kg lentil, sugar, chickpea and 1 kg date at a time. All the specific card holders can buy sugar at Tk 60/per kg, date at Tk 100, lentils at Tk 70, chickpeas at Tk 50 and soybean oil at Tk 110 per liter.
