Abnormal prices of spices hit hard on public life 

Lenin Rahman :

Money depreciation against the US dollar and increased duties on imports are calculated for the higher prices of the spices, posing hardship to purchase the required spice products ahead of the holy Eid-ul-Azha.

Experts accepted the cause of money depreciation against the US dollar and increased duties on imports for increasing the prices in the retail market, but a section of vested traders are taking advantage of the prevailing situation for the skyrocketing prices of the spices.

Actually, the demand for spices increased significantly Ahead of Eid-ul-Azha and the vested traders are undertaking advantage of it, market insiders mentioned.

It is true that most of Bangladesh’s spice products are imported from the international market and the authority is treating the spices products as luxurious products, said sources adding that the unethical traders are charging higher prices against the spices for their personal interest.

Already people are facing severe hardship to purchase the required essential commodities for the significant rise of inflation and they are now being forced to purchase the spices products at a higher price.

The abnormal growth of the spices products is not acceptable ahead of the Eid-ul-Azha and the government needs to monitor it strictly to reduce the public suffering.

According to the importers, traders used to import goods at Tk82 to Tk84 per dollar, but the price of the dollar has now reached Tk112.

Apart from this, the imposition of tariffs has significantly increased import costs, leading to higher spice prices than ever before.

Importers also predicted that there may be a shortage of spices in the country during Eid-ul-Azha due to the increased duties on spice imports, treating them as luxury products.

Talking to the Daily Tribunal, Mirza Walid Shipon, President of Jubo Economist Forum mentioned that around 90 percent of spices used are imported.

Import bar and money depreciation are not the actual reasons for increasing the higher prices of the spices, a strong syndicate is taking advantage of the global crisis.

Actually, people are bound to purchase the required spices at a higher price ahead of the Eid-ul-Azha and the unethical traders are using such an opportunity and creating an artificial crisis of the spices in the retail market, Mirza claimed.

The demand for spices in the country has skyrocketed as the Muslim community eagerly prepares for the upcoming festival of Eid-ul-Azha and the spice market continues to face challenges from the Russia-Ukraine war.

The importers are facing the challenges of opening LC (letters of credit) mainly for the dollar shortage in the country.

Already many media reports have been published regarding the higher prices of spices prices and the sufferings of the mass people for spending the additional expenditure.

According to a report, the dry hot spices in high demand including cumin, cinnamon, cardamom, pepper, bay leaves, cloves, dried whole chilies, dried whole turmeric, mustard, and coriander increased significantly.

Although mustard, black cumin, sweet cumin, bay leaf, pepper, turmeric, and coriander are produced domestically which is not sufficient against the demand ahead of the Eid festival.

On the other hand, cumin, cinnamon, cardamom, pepper, cloves, nutmeg, mace (Javitri), shahi jeera, white pepper, fenugreek, Randhuni, and starflower, are almost entirely reliant on imports.

Besides, perishable spices like onions, ginger, and garlic are partially produced domestically but heavily dependent on the global market.

During physical verification, the correspondent found that the wholesale prices of various spices provide insight into the soaring costs. Indian cumin is now being sold at Tk770 to Tk800 per kilogram, while cumin from other sources, including Afghanistan, costs up to Tk850 per kilogram. Just a year ago, cumin prices ranged from Tk300 to Tk350 per kilogram.

Cinnamon, which was previously priced between Tk210 and Tk250 per kilogram, is currently wholesale at Tk320.

Pepper prices have surged from Tk150-650 to Tk670 per kilogram, cardamom has seen an increase of several hundred taka to Tk1,500 per kilogram, cloves have risen by at least Tk700 to Tk1,500 per kilogram, sweet cumin has witnessed an increment of Tk200 to Tk310 per kilogram, coriander prices have climbed by Tk50-60 to a maximum of Tk180 per kilogram, and fenugreek has increased from Tk20 to Tk130 per kilogram.

Black cumin has seen a rise of Tk50-70 to Tk250 per kilogram, shahi cumin has surged from Tk350-400 to Tk850 per kilogram, Randhuni has increased by Tk50-200 to Tk220 per kilogram, and mustard prices have jumped from Tk40-50 to Tk 95-105 per kilogram.

Media report Star Flower has substantially increased from Tk200-250 to Tk1,280-Tk1,300, and bay leaves have risen by Tk15-20 to Tk85-90 per kilogram.

Khatunganj is considered the country’s largest wholesale market for consumer goods, said the quantity of spices being imported falls far short of the country’s requirements.

The importers mentioned that the demand for spices soaring during Eid-ul-Azha, and the prices of imported spices have risen due to various factors, including the dollar crisis.

They expected that resolving the import crisis is crucial for stabilizing the spice market in Bangladesh.

Out of the perishable spice products, onions are currently priced between Tk70-80 per kilogram in the retail market. The halt in onion imports from India has led to an increase in prices within the country and the Chinese ginger and garlic markets have become unstable due to the import crisis, resulting in high prices for ginger from Myanmar and Indonesia.

Additionally, the price of dry chilies, a key spice product in the country, has reached record highs. Earlier, dry chili prices ranged from a minimum of Tk100 (in season) to a maximum of Tk250 per kilogram. However, over the past year, the price has hit a record high of Tk500 per kilogram. Presently, the price of dry chilies fluctuates between Tk320 and Tk450, despite a slight decrease.

On the other hand, the market for whole turmeric provides some relief to buyers. While previously sold between Tk100 and Tk110 per kilogram, domestic and imported turmeric is now priced between Tk125 and Tk130. Although turmeric and pepper are produced domestically, traders import them from India to meet the demand for high-quality spices.

 Mirza, however, urged the authority to conduct market monitoring ahead of the Eid-ul-Azha to tackle the skyrocketing prices of spices.