The prices of several essential commodities are continuing to rise, adding to the financial strain on consumers already dealing with high inflation. Flour and refined flour have become more expensive in recent weeks, while traders are warning that rice, eggs and other everyday food items could also see further price increases following higher fuel and transport costs.
The latest increases come after a prolonged period of pressure on household budgets. Consumers had already been facing higher prices for flour and refined flour for around one and a half months before fuel prices were raised. Last week, both products became Tk 10 more expensive per kilogram at retail markets.
The concern now is that higher transport costs could spread across the supply chain. Traders say the additional transportation cost per kilogram is often measured in a few paisa, but the corresponding increase at retail level can be several taka.
Consumer rights campaigners have called for stronger market monitoring, particularly at a time when households with limited incomes are struggling to balance earnings and expenditure.
Flour prices rise again
A visit to markets in Nakhalpara, Mohakhali, Kolmilata and Karwan Bazar in Dhaka on Wednesday found packet flour selling at Tk 70 per kilogram and refined flour at Tk 80.
A week earlier, the two products were priced at Tk 60 and Tk 70 respectively, meaning both have risen by Tk 10 per kilogram.
Loose flour remains cheaper, with prices ranging between Tk 50 and Tk 55 per kilogram. Loose refined flour is selling for Tk 65 to Tk 70. Traders said the prices of both loose products have also increased by around Tk 5 within five to six days.
Bikash Banik, proprietor of KB Store at Mohakhali kitchen market, said flour and refined flour had already become more expensive one to one and a half months ago. Companies have now supplied new two-kilogram packets carrying retail prices of Tk 140 for flour and Tk 160 for refined flour.
According to data from the Trading Corporation of Bangladesh (TCB), the price of packet flour increased by 4 per cent and refined flour by 17 per cent in one month.
Rice market faces fresh uncertainty
The rice market, which had remained relatively stable for about a month, is now showing signs of renewed pressure. Wholesale traders say increased truck fares following the rise in fuel prices could eventually push up rice prices.
A wholesale rice trader at Karwan Bazar said he had brought 15 tonnes of rice from Chapainawabganj. Two days earlier, the truck fare had been Tk 17,000, but the same journey had cost Tk 21,000 on the latest trip.
Based on the trader’s figures, the additional transport cost works out at around 27 paisa per kilogram of rice.
Traders said the immediate impact may be limited because stocks purchased at earlier prices are still available. However, prices could start moving upwards once newly purchased rice reaches the retail market.
One trader estimated that rice prices could rise by around 50 paisa per kilogram, although the increase could potentially reach Tk 1 depending on market conditions.
Another retailer at Mohakhali said transporting rice from Mohammadpur Krishi Market in a small pickup previously cost around Tk 1,500, but the fare has now increased by Tk 200. He expects the additional expense to be reflected in retail prices. Higher diesel costs could also increase milling expenses, potentially adding further pressure to the market.
Higher fares affect puffed rice
The transport-cost increase is also being felt in the market for puffed rice. A wholesale trader at Karwan Bazar said he recently brought 3,200kg of hand-roasted puffed rice from Barishal.
The usual transport charge was Tk 16,000, but he had to pay an additional Tk 3,000 despite negotiating with the transporter.
Puffed rice is currently selling for around Tk 120 to Tk 150 per kilogram, depending on quality. The trader said the higher transport cost has added roughly Tk 1 per kilogram to his expenses. He expects that additional cost to be incorporated into wholesale prices and could become even higher at the retail level.
The increase illustrates how even relatively small changes in transport expenses can accumulate as goods move through different stages of the supply chain.
Egg prices remain under pressure
Egg prices have remained high for around two months, and traders are now warning of another possible increase.
A retailer in West Nakhalpara said wholesalers had indicated that higher truck fares could push up egg prices. Brown farm eggs were selling at Tk 160 per dozen at his shop. Customers buying four eggs were being charged Tk 55.
Although the immediate increase has not been confirmed as a direct consequence of higher transport costs, retailers say they have already received indications from suppliers that prices could rise.
Cooking oil supply concerns
The price of bottled edible oil increased by Tk 5 per litre at the beginning of the month. Yet supplies of the popular five-litre bottles have not returned to normal, according to retailers.
Bikash Banik of KB Store said oil dealers had indicated that companies had approached the government regarding another possible price increase. He also claimed that supplies were being reduced.
Any further increase in cooking oil prices would put additional pressure on household budgets, given the product’s importance in everyday food preparation.
Milk and imported fruit also cost more
Packet liquid milk has recently become Tk 10 more expensive per litre across companies, according to retailers.
Imported fruit prices have also risen. Malts and oranges are selling for Tk 420 to Tk 450 per kilogram, while apples are priced at Tk 340 to Tk 360. Red grapes are being sold at Tk 400 to Tk 450 per kilogram.
Traders have attributed the higher prices partly to increased fuel and transportation costs.
Calls for evidence-based price monitoring
Consumer rights organisations have expressed concern that businesses could use higher fuel prices as an opportunity to raise commodity prices beyond the actual increase in their costs.
AHM Shafiquzzaman, president of the Consumers Association of Bangladesh (CAB), said fuel price increases could raise transport costs by roughly 15 to 25 paisa per kilogram in some cases. He argued that stronger government monitoring was needed to prevent unjustified increases from being passed on to consumers.
He also said the impact of fuel price increases was extending beyond transport into different parts of the economy and household spending. According to him, market monitoring needs to be strengthened so that businesses cannot impose additional costs on consumers without sufficient justification.
Dr Khondaker Golam Moazzem, president of private research organisation Knowledge Hub Institute, said an increase in fuel prices does not automatically mean that every commodity should become more expensive by an unspecified amount.
He called for the Bangladesh Trade and Tariff Commission to analyse how much transport costs should increase per kilometre following the fuel price adjustment and how much the change could add to production and distribution costs for different commodities.
Such calculations could help government agencies responsible for agriculture, food and commerce assess whether price increases in individual markets are proportionate to actual additional costs. Reliable data could also make it easier to identify unusual price movements.
Government promises tighter oversight
Mohammad Zahirul Islam, director general of the Directorate of National Consumer Rights Protection, said the increase in commodity prices in some cases appeared to be higher than the impact that the fuel price increase should have had.
He said businesses would not be allowed to use higher transport costs as a justification for excessive price increases. If transport costs rise by around 25 paisa per kilogram, he argued, that should not become a justification for substantially increasing the retail price.
Zahirul Islam said market monitoring was being carried out daily, with officials comparing changes in transport fares with changes in commodity prices. Information was also being collected from different sources, he said, adding that monitoring would be strengthened further.
For consumers, the immediate concern is that higher costs in one part of the supply chain could gradually spread to a wider range of essential goods. With flour and refined flour already more expensive and rice, eggs, puffed rice and other commodities facing renewed pressure, the effectiveness of market monitoring and the accuracy of cost assessments will be crucial in determining how much of the additional burden ultimately reaches households.
