Consumers across Bangladesh continue to feel the pinch as prices of essential commodities surge yet again, with onions and edible oil becoming notably more expensive. A market survey conducted on Friday in various parts of Dhaka revealed that the price of onions has shot up by Tk 20 per kilogram in just two weeks, while bottled soybean oil has increased by Tk 14 per liter. Despite slight relief in the prices of poultry and vegetables, the rice market remains chaotic and unpredictable, adding to the financial strain on households.
This ongoing inflation in essential food items is not only eroding consumer purchasing power but also posing significant challenges to policymakers, who are already grappling with a fragile economy amid declining deposit growth, political uncertainty, and a lack of public trust in financial institutions.
Onion Prices Surge by Nearly 50 Percent: Until the end of March, consumers enjoyed some relief as the price of onions dropped to as low as Tk 30 per kg due to high seasonal yield and ample supply. However, that downward trend has reversed dramatically in recent days. Onions are now being sold at Tk 60-65 per kg in kitchen markets across Dhaka, a nearly 50 percent increase from just two weeks ago.
Traders at Karwan Bazar, one of the capital's largest wholesale markets, said the current spike is due to a sudden decline in domestic supply and increased transportation costs. "We had a good onion season, but stocks have started depleting faster than expected. On top of that, the cost of bringing onions from districts like Faridpur and Pabna has increased due to higher fuel prices," said Haji Selim, a wholesale onion trader.
According to the Department of Agricultural Marketing (DAM), a poor storage system and delays in harvesting late-season onions have also contributed to the shortage in supply. "We are seeing a market correction now. While Tk 30 per kg was unusually low, Tk 65 is certainly high for this time of the year," said a DAM official, requesting anonymity.
Retailers, however, are blaming middlemen and hoarders for artificially inflating prices. "As always, we're the last ones to get any benefit. We buy high and sell higher to survive. The consumers blame us, but it's the syndicate that controls the price," said Rafiq Mia, a vendor in New Market.
Soybean and Palm Oil Prices Up Again: Adding fuel to the fire, edible oil prices have been hiked significantly since Tuesday, April 16. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association announced a Tk 14 increase per liter of bottled soybean oil, taking the new retail price to Tk 189 per liter from Tk 175.
A five-liter bottle now costs Tk 922, up from Tk 852 - a jump of Tk 70 per bottle. Meanwhile, open soybean and palm oil prices have also increased by Tk 12 per liter and are now selling at Tk 169 and Tk 132, respectively.
This sudden hike in oil prices follows a similar pattern observed in global markets. "The price of soybean oil has increased in international markets, and the recent depreciation of the Taka against the dollar has made imports more expensive. As a result, local refiners have passed on the burden to consumers," said Syed Nazmul Haque, a senior official at a leading edible oil import company.
However, consumer rights groups say the government has failed to monitor import and pricing practices effectively. "Edible oil companies continue to raise prices at will. Even when global prices decline, local prices don't fall accordingly. This is unacceptable," said Ghulam Rahman, President of the Consumers Association of Bangladesh (CAB).
Rice Market Remains Chaotic: Amid the onion and oil price hikes, the rice market remains unstable, with no clear relief in sight. Although the Boro harvesting season is underway in northern Bangladesh, rice prices have not decreased proportionately in urban markets.
In Dhaka, coarse rice (Swarna) is selling at Tk 52-55 per kg, medium-grade (BR-28) at Tk 58-60, and finer varieties (Miniket) are going for Tk 70-75 per kg - prices that have remained largely unchanged for the past few months despite expectations of a fall.
Farmers say millers and traders are not buying paddy at fair prices due to government procurement policies favoring large millers. "We are being forced to sell at Tk 30 per kg when the government announced a procurement rate of Tk 34. But local millers are either not buying or offering lower rates," said Sirajul Islam, a farmer in Naogaon.
This mismatch between procurement and market prices is leaving consumers and producers equally disgruntled. "Why is rice so expensive when farmers are not even getting a fair price for paddy? Who is making the profit here?" asked Monowara Begum, a homemaker shopping at the Mohammadpur Krishi Market.
A Glimmer of Relief in Meat and Poultry: One silver lining in this grim picture is the declining price of poultry and meat, particularly broiler and golden chickens. Before Eid-ul-Fitr, prices had soared to Tk 230 per kg for broiler and Tk 330 for golden chickens. But as demand normalized post-Eid, prices have dropped to Tk 170-180 and Tk 270-280, respectively.
Similarly, beef prices have seen a small correction, down from Tk 800 per kg before Eid to around Tk 750 per kg currently.
Vegetable prices have also cooled off somewhat, with essentials like potatoes, tomatoes, and eggplants selling at more manageable rates compared to last month.
Inflation Strangling Consumer Budgets: The renewed increase in onion and oil prices comes as Bangladeshis are already struggling with overall inflation above 9 percent for several consecutive months. According to the Bangladesh Bureau of Statistics (BBS), inflation in March stood at 9.35 percent - a slight uptick from 9.32 percent in February.
Experts say food inflation in particular is far higher than the average figure. "Core food items like rice, oil, onions, and lentils have been persistently expensive. When these items cost more, it directly impacts household savings and consumption patterns," said Dr. Nazneen Ahmed, former UNDP economist and macroeconomic analyst.
Policy Dilemma for the Government:The government, under the interim administration since the fall of the Awami League government in August, is facing a tough balancing act. On one hand, it needs to stabilize food prices to protect vulnerable populations. On the other, it faces budgetary pressures, a declining foreign reserve, and a weakened banking sector struggling with slow deposit growth and poor liquidity.
In response to the rising oil prices, the Ministry of Commerce said it would increase monitoring of oil refiners and traders to ensure fair pricing. However, it stopped short of reintroducing subsidies, citing a shortage of fiscal space.
The Ministry of Food has also hinted at increased public procurement of Boro rice to stabilize the market. But experts are skeptical. "Procurement drives are often late and not wide-reaching. Unless the government intervenes with precision, these efforts won't help much," said Dr. Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD).
Consumers Bear the Brunt: For ordinary citizens, the numbers mean very little - it's the market realities that shape their lives. Jahanara Khatun, a garment worker from Mirpur, summed up the struggle: "My salary is the same as last year, but everything costs more now. Even cooking a simple meal of rice, lentils.
