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Spice Market Turns Volatile

Prices of sugar, palm oil up following budget

Published : Sunday, 23 June, 2019 at 12:00 AM  Count : 323

Prices of sugar, palm oil up following budget

Prices of sugar, palm oil up following budget

The kitchen market reported sharp rise in prices of almost all imported consumers items in the wake of new import duty on them in the budget for 2019-20. Surprisingly prices of ginger and garlic have almost doubled over the past 15 days in the market.
A high level meeting at commerce ministry on last Tuesday reviewed as to why the prices being doubled while there is no reason for supply short fall. Many believe traders are slowly taking the market facing the Eid-ul-Azha which is not far away.       
Meanwhile, sugar price has increased by about Tk 120 per maund (40 kg) as the budget has increased import duty on unrefined sugar to Tk 3,000 from Tk 2000 per tonne. Similarly import duty on refined sugar has been increased to Tk 4,000 to Tk 6,000 per tonne.
The budget has also increased regulatory duty (RD) from 20 percent to 30 percent as the finance minister has justified it for giving protection to local sugar industry. Tax burden on per kg sugar has been calculated at Tk 21 after the budget announcement and the impact of all such measures has already reflected in the market.
Retailers have scaled up sugar price by a margin of Tk 4 to 5 per kg selling it at Tk 54 to Tk 55 in city market Saturday.
The budget has increased VAT on Palm oil at importers level. Refiners had to pay it in three stages at 5 percent each and now they will have to 15 percent VAT in three stages each. Palm oil sold at Tk 1980 per maund (40 liter) at week-end in the wholesale market, which is Tk 90 higher than pre-budget period. Meanwhile, price of Super Palm oil soared to Tk 2200 per maund.
Similarly price of Soyabean oil has increased to Tk 2800 per maund, up by Tk 50 from pre-budget period. At retailers level prices has increased by Tk 4 to 5 per liter or even more.
The proposed 5 percent VAT on spices over existing 60 percent duty on their import is  moreover overheating the market.
 Meanwhile, prices of ginger and garlic increased almost doubled in the last 15 days in the city's kitchen markets. Trader claimed the rise in their prices occurred at the retailers market as their  prices went up at wholesale market.
This reported visited several retailers and wholesale markets in the city on Saturday including Karwan Bazar, Moghbazar, Jatrabari, Mirpur and New Market and found significant the market is up at all places.  
    A retailer at Karwan Bazar kitchen market said the market price of garlic is high as its local is low in the season. Meanwhile price of garlic has increased in the international market to push its prices in local market.
Imported garlic sold at Tk 150 to Tk 170 in retail market from Tk 90 to Tk 100 only 15 days   ago. Traders may be fixing eyes at Eid Ul Azha raising the prices up.
Similarly production of ginger decreased in India, China and Myanmar. Bangladesh import ginger from these countries and so prices of imported garlic is going up. Meanwhile, the commerce Ministry has arranged a meeting of supply and price situation of essential commodities at the Secretariat last Tuesday.
The Commerce Secretary said MD Mofizul Islam said in the meeting was held on why ginger price increased Tk 80 in last 15 days although the import situation is good.
The meeting was chaired by Commerce Minister Tipu Munshi at the meeting organized             by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Vice President Siddiqur Rahman, President of Dhaka Chamber of Commerce and Industry (DCCI) Osama Tasir, City Group Chairman Fazlur Rahman, Meghna Group Chairman Mustafa Kamal nad senior officials were present in the meeting.

The prices of onion increased by Tk 5 this week. Local variety was selling for Tk 30 to Tk 35 a kg while the imported onions were retailing at Tk 22 to Tk 25 a kg.
Meanwhile, the brinjil sold at Tk 50 to Tk 70 a kg, papaya for Tk 43 to Tk 30 a kg, bitter gourds for Tk 60, Green chilli at Tk 80 on Saturday. The prices of fish remained high in the city markets over the week. The price of broiler chicken decreased by Tk 10 a kg and the item was selling for Tk 130 to Tk 135 a kg in the city markets and locally bred hens were selling for Tk 500 a kg.
Beef was selling for Tk 600 a kg in the city markets while mutton was selling for Tk 800 a kg on Saturday.

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