Kitchen market suffering from price hike

India has removed the floor price for basmati rice exports, effective Friday, to boost overseas sales just before the new-season crop arrives. Previously, the minimum export price (MEP) for basmati was set at $1,200 per metric ton and later reduced to $950. With supplies increasing, exporters requested the removal of the MEP to avoid unsold stocks when the new crop comes in a month. Both India and Pakistan promote basmati rice similarly to French Champagne or Darjeeling tea.

The interim government has set maximum prices for eggs, Sonali chickens, and broiler chickens at the production, wholesale, and retail levels. Sonali chickens are priced at Tk 269.64 per kg at the retail level, Tk 264.57 at the wholesale level, and Tk 260.78 at the production level. Broiler chickens are priced at Tk 179.59 per kg at retail, Tk 172.61 at wholesale, and Tk 168.91 at production. Additionally, the price of eggs has been fixed at Tk 11.87 per piece at retail, Tk 11.01 at wholesale, and Tk 10.58 at the production level. This pricing was established by the Department of Agricultural Marketing.

India’s removal of the $550 per tonne minimum export price (MEP) and reduction of export duty on onions is impacting Bangladesh’s kitchen markets. In Dhaka’s Shyambazar, Indian onion prices dropped by Tk 4 to Tk 5 per kilogram, now selling at Tk 95-96 per kg. Although no new shipments have yet arrived, wholesalers anticipate further price drops once new consignments come in. Onion prices at retail have fallen slightly, from Tk 100-115 per kg to Tk 100-105 per kg.

Four days before the fall of the government, Bangladesh Bank granted a two-year loan repayment extension to the Bashundhara Group for its debt with National Bank. As of August 31, Bashundhara's loan with National Bank amounted to BDT 3,844 crore, surpassing the legal limit by eight times. The central bank allowed this extension despite their policy typically restricting such extensions to one year. The loan was already BDT 3,859 crore, with direct loans at BDT 3,844 crore. The extension was requested in April and approved in July, right before the government’s collapse on August 5.

An investigation by the Bangladesh Competition Commission (BCC) has revealed that several leading bottled water manufacturers inflated their profits by up to 420% by raising the price of 500ml bottles from Tk15 to Tk20 between January and September 2023.

Gold prices in Bangladesh are set to rise to approximately Tk 130,000 per bhori (11.664 grams) following a 2.8% increase from the previous rate of Tk 126,321 per bhori. This new price, advised by the Bangladesh Jewellers' Association (Bajus), reflects the higher cost of pure gold.