Bangladesh Bank (BB) officials have found no evidence of syndication behind the recent increase in the prices of essentials. Instead, the rise in prices, particularly in rice price has been attributed to imbalances in demand and supply, according to a study conducted by the central bank.
Bangladesh Bank Deputy Governor D. Habibur Rahman, who led study disclosed the findings at a press conference held at the central bank's head office on the occasion of release of the second phase of the study titled "Value Chain Efficiency of Agricultural Products in Bangladesh."
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan, along with other executive officers, researchers involved in the study, and senior officials, were also present at the event.
The study examined five agricultural products-paddy/rice, potatoes, onions, eggs, and broiler chicken. In the second phase of the research, officials found no existence of syndicates influencing the prices of paddy/rice and onions.
Instead, price increases were driven by high demand and limited supply. The research was conducted at the farmer level across 61 upazilas in 18 districts nationwide.
Deputy Governor Rahman said farmers spent Tk 872 per maund of paddy this year and earned Tk 587 per maund, resulting in a selling at Tk 1,459 per maund. He added that while farmers occasionally incurred losses in egg and broiler chicken production, they earned modest profits over the year overall.
He noted that onions typically face supply shortages during October and November. If the government allows onion imports during this period, prices could be stabilized within the range of Tk 60 to Tk 100 per kilogram.
Rahman emphasized that the study found no syndication in any of the five agricultural products analyzed. However, prices continue to fluctuate due to variations in demand and supply.
He further said that the research indicates rice prices are expected to remain stable, although the price of fine rice has increased by 11 percent compared to last year.
