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.
Adviser to the Ministries of Finance and Commerce, Dr. Salehuddin Ahmed, emphasized today that the prices of commodities are closely linked to production and supply, and assured that the government is fully aware of the necessary steps to control these prices.
“We are very conscious of issues related to trade and commerce. My colleague, Dr. Wahiduddin Mahmud, who oversees the Ministry of Planning, is also focused on these matters. We are accustomed to handling such challenges,” Dr. Salehuddin remarked in response to reporters’ questions at the Ministry of Finance in Bangladesh Secretariat.
Earlier in the day, Dr. Salehuddin met with Edimon Ginting, the Country Director of the Asian Development Bank (ADB), at his office in the Economic Relations Division (ERD).
He noted that the government is also attentive to the impacts of imported inflation, stressing that only essential goods should be imported. “We must ensure that the additional burden on the general population is minimized and work to further reduce existing pressures,” he added.
Dr. Salehuddin also mentioned that the central bank governor is well-informed about the causes of rising inflation, which is why strict market monitoring is in place.
Addressing another question, he mentioned that the Bangladesh Bank Governor is actively managing the issue of increasing foreign currency reserves, and this topic will be raised in the upcoming annual meetings of the World Bank and the IMF.
When asked about the outcomes of his meeting with the ADB, Dr. Salehuddin expressed that development partners, particularly the World Bank and ADB, remain positive about continuing their operations in Bangladesh. He noted that the ADB and other partners have assured him of their ongoing cooperation in the development sector.
He further highlighted that the development partners are eager to advance pipeline projects in alignment with the government’s priorities.
Regarding the possibility of delaying Bangladesh’s graduation from Least Developed Country (LDC) status beyond 2026, Dr. Salehuddin acknowledged the complexity of the issue, noting that it involves various conditions and the involvement of multiple agencies, including the Ministry of Finance, Ministry of Commerce, and the National Board of Revenue (NBR). He assured that the government is closely monitoring the developments.
When asked about the demands from government employees for ration provisions, Dr. Salehuddin stated that both public and private sector employees are equally important, emphasizing the government’s priority to ensure that everyone can lead a decent life. “We are committed to ensuring that everyone benefits equally,” he said.
On his new responsibilities with the Ministry of Commerce, Dr. Salehuddin underscored the importance of local and international trade as key pillars of the economy. He assured that the government would strive to create a business-friendly and corruption-free environment in all business operations.
Recognizing the significant role of trade, commerce, and the supply chain in curbing inflation, Dr. Salehuddin promised prompt government action to address these issues.
He also mentioned plans to meet with the Ministry of Commerce and its subordinate bodies to tackle pressing matters. “You can be assured that I will do my utmost and take necessary steps swiftly,” he concluded.
The prices of daily essentials will come down gradually, Finance and Planning Adviser Dr Salehuddin Ahmed said today (14 August).
“Common people will get relief to some extent. But it can’t be said that the prices will decrease overnight,” he told reporters at the conference room of the Finance Ministry.
Responding to a question about syndicate in the market, he said, “There is nothing that has not come to our notice, I have some ideas, the governor also knows about it.
“The secretaries here are also very experienced and I told them that you will tell me everything without fear.”
Asked if any step will be taken regarding corruption, he said, “There was no discussion on the issue today.”
Responding to another question he said, “Action against corruption is an ongoing process, some processes need to be followed to punish someone. Some measures and action have already been taken.”
Responding to a question about the specific instructions given today, the finance adviser said the Industries and Agriculture ministries will do whatever needs to be done in the field of production, such as fertiliser supply and market management.
Cyclone Remal has inflicted severe damage on crops across 45,590 hectares of land in the Khulna agricultural zone, causing losses worth Tk 180.24 crore, as reported by the Directorate of Agricultural Extension (DAE) in Khulna.
According to Mohon Kumar Ghosh, Additional Director of the DAE Khulna Zone, 44,148.95 hectares of farmland suffered partial damage, while 1,450.90 hectares were completely destroyed in the four affected districts: Khulna, Bagerhat, Satkhira, and Narail.
In Khulna district, Cyclone Remal affected 3,565.65 hectares of cropland belonging to 13,796 farmers, resulting in losses estimated at Tk 42.98 crore. Bagerhat district witnessed damage to 12,611.50 hectares of cropland from 39,465 farmers, with losses amounting to Tk 97.36 crore. In Satkhira, 659.7 hectares of cropland owned by 12,156 farmers were affected, incurring losses of Tk 24.42 crore. Narail saw damage to 28,763 hectares of cropland from 8,620 farmers, with estimated losses of Tk 15.47 crore.
Speaking to BSS, Mohon Kumar Ghosh highlighted the extensive damage caused by Cyclone Remal to the southern coastal areas, particularly croplands. The affected crops include jute, Aush seedbed, aush cultivated land, groundnut, chili, bona Aman, ginger, turmeric, summer melon, litchi, mango, papaya, betel nut, sugarcane, banana, winter maize, sesame, and various Kharif season vegetables such as tomato, mung bean, and banana.
Following directives from Prime Minister Sheikh Hasina, efforts are being made to support the affected farmers. “We are working tirelessly to help the helpless farmers recover their losses,” Ghosh said, adding that the government is providing incentives and regular counseling and supervision at the field level to aid recovery.
In the coming months, the affected farmers will continue to receive various forms of government support to mitigate the impact of Cyclone Remal.
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