Low-income groups reel under unbridled prices

Rekha Akter, a resident of Nayatola in Moghbazar, works as a domestic help, while her husband earns daily wages. Together they bring in a monthly income ranging from Tk12,000 to Tk14,000.

Their income has remained stagnant over the past two years, but their expenses have risen. With two children, they can only afford a one-room house for a rent of Tk5,000, which used to be Tk4,500 last year.

Due to the surge in food prices, Rekha has even had to cut back on purchasing broiler chicken to ensure they can cover their monthly expenses with the remaining funds.

Rekha Akhter was purchasing pulses worth Tk20 from a nearby grocery store. She lamented the rising prices of eggs, fish, meat, and vegetables.

"We typically rely on dried fish, Surma fish, and occasionally small fish throughout the year. Now, we mainly depend on pulses. We can only afford meat for our children during festivals," she said.

Numerous low-income families in Dhaka and elsewhere across the country have expressed their increasing difficulties in affording fish and broiler chicken, not on a regular basis but occasionally.

Additionally, they find themselves restricted in the variety of vegetables they can purchase. Some families have even ceased spending on medications for minor ailments.

Constrained by limited income, these families struggle to cope with escalating household expenses, leading to a continuous escalation of their hardships.

The government distributes rice, pulses, oil, and sugar at subsidised prices to one crore families nationwide through the Trading Corporation of Bangladesh (TCB).

However, the plight of those purchasing these products directly from the market continues to worsen day by day.

Despite implementing various measures and intensifying monitoring efforts, the government has struggled to curb rising prices since the outbreak of the Russia-Ukraine war.

According to Population and Household Census data from the Bangladesh Bureau of Statistics (BBS), the number of poor people in the country now exceeds 3.17 crore, with over 95 lakh people still living in extreme poverty.

During a discussion organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on "Production, Import, Storage, Supply, and Price Situation of Daily Commodities in Ramadan," traders claimed that the market remains uncontrollable due to factors such as instability of the dollar, extortion, high import duties, and syndicates.

FBCCI President Mahbubul Alam said banks are charging arbitrary rates for the dollar, resulting in increased import costs. The prices of vegetables are not decreasing due to extortion, while those of broiler chicken and beef are controlled by syndicates, and the prices of sugar and dates are inflated due to high duties.

According to market analysis data by TCB, the price of a litre of soybean oil is currently Tk173, with a reduction of Tk10 set for 1 March. This marks a significant increase from Tk135 in May 2021, the year before the onset of the Russia-Ukraine war. In 2022, the price even jumped to Tk205.

A kilogram packet of flour has surged to Tk55-60 from Tk32-35, while the price of locally sourced onions has jumped to Tk120 from Tk40-45. Similarly, the cost of four broiler chicken eggs has risen to Tk48 from Tk30, and lentils (large grains) now command prices of Tk115-120 per kilogram, up from Tk70.

Coarse rice is currently priced at Tk50-52 per kilogram, compared to Tk44 previously. Broiler chicken is selling at Tk210-215, while the price of rui fish has escalated from Tk250 to Tk350-380 per kilogram. Sugar has also experienced a notable increase, climbing from Tk75 to Tk150. Moreover, purchasing tilapia and pangash fish has become costly for the poor.

Furthermore, the price of beef has skyrocketed, with a Tk580 kg beef now selling at Tk750-800 per kilogram.

Mohammad Masud, a salesman at Solaiman Traders in Karwan Bazar, said, "Our sales have declined due to the rise in the price of goods. With prices escalating, we, like our buyers, are also in peril."

Ariful Islam, a wholesaler in the same market, told TBS that just two years ago, he was too occupied with sales to engage in conversations outside of business. However, the current scenario is starkly different, with sales plummeting by over 40%.

Ghulam Rahman, president of the Consumers Association of Bangladesh (CAB), told TBS that during periods of high inflation, everyone tends to hike up the prices of their services or products.

"During such times, expenses, including rent, transportation, and goods and services costs surge. This worsens the situation, putting immense pressure on individuals with limited incomes," he expressed his concern.

Rahman emphasised the importance of government intervention in addressing issues like syndicates and money laundering, and ensuring that supply meets demand.

"The failure to maintain adequate supplies makes it challenging to regulate the market. Hence, sometimes other measures fail to yield the desired results," he concluded.

Meanwhile, the government has been consistently engaging with traders, implementing measures to reduce tariffs, and closely monitoring the market. However, these efforts have failed to yield the desired results, with the market behaving in the opposite manner, greatly impacting ordinary people. The price of vegetables has soared to Tk60-70 per kilogram, while the price of potatoes has dropped to Tk30 after a prolonged period.

On 20 February, the commerce ministry convened a meeting with traders, during which a presentation highlighted a 28.23% decrease in the price of wheat in the international market, a 29% decline in the price of crude soybean oil, and an 83% decrease in the price of onions. Despite these declines, prices of rice, sugar, and pulses have risen. Additionally, imports of raw sugar, crude soybean oil, and onions are reportedly lower compared to the same period last year.

Mohammad Hossain, who has been driving a rickshaw in the capital for 20 years, is now 70 years old. At his age, driving a rickshaw is incredibly challenging, but he has no alternative source of income. His daily earnings amount to around Tk500, excluding regular expenses, which he sends to his wife and two children in Rajbari.

He said his income has remained the same over the past three years, but household expenses have doubled during this time. His daughter is studying in Class X, and it has become challenging to provide her with nutritious food.

According to the BBS, food price inflation stood at 9.56% in January of this year. This rate is 9.41% in rural areas and 9.98% in urban areas.

While ordinary people are feeling the pressure of food price inflation, many are once again cutting back on their medications. Despite no official announcement of price increases, the prices of various medicines have risen in the last month.

Medicine sellers have reported increases in the prices of antibiotics, gastric medications, kidney medications, and diabetes medications.

Manowara Begum, 56, works part-time as a housekeeper in a house in the Mahanagar project area of Dhaka. She has been suffering from diabetes and high blood pressure for a year.

Since her diagnosis, she has needed to take diabetes and blood pressure medications regularly. However, with the increase in the prices of goods and medicines, she sometimes skips her medication.

Manowara told TBS, "I have no way to afford medicine after paying house rent and household expenses with what I earn from working in people's homes. Previously, my husband and I used to spend Tk1,000 a month on medicine, but now it has increased to more than Tk1,300. That's why we cannot afford to take medicine regularly."

According to the Health Economics Unit of the health ministry, 69% of a patient's expenses for treatment in the country are out-of-pocket expenses. Of this, the patient has to spend 65% solely on purchasing medicine.

Royal Chandra Das, an assistant librarian at Torabganj School in Lakshipur's Kamalnagar, said he receives a monthly salary of Tk16,000. He spends Tk5,000 per month on rent and Tk8,000-9,000 on expenses related to food, children's education, and personal needs.

"As the 15th day of the month approaches, I feel empty. Each month seems to drag on," he said sorrowfully.

Md Riaz, an employee of a design house named Digital Furniture in Lakshmipur, stated, "I receive a salary of Tk6,000 per month. However, after purchasing rice and curry, there is no money left. The prices of goods in the market are increasing every day, leaving me with no extra funds except for basic food expenses."