Price caps fail to curb rising costs of eggs, chicken; vegetable price also high

Highlights:

• Eggs currently selling for Tk170 per dozen in Dhaka 
• Broiler chicken for Tk190-200 per kg, up by 10.61% in a month
• Increase in feed costs has led to rising poultry prices
• Vegetable prices have surged Tk10-15 per kg over the past week
• Heavy rainfall, flood reduced supply of vegetables in the capital

Prices of essential food items, including vegetables, eggs, and chickens, have significantly increased in various markets of the capital over the past week.

The Department of Agricultural Marketing fixed the prices of eggs, broiler, and Sonali chickens on 15 September to stabilise the market.

However, prices have continued to rise, with eggs selling for Tk23-28 more per dozen and broiler chickens for Tk15-20 more per kilogram than the official rates.

The new rates set the retail price of broiler chicken at Tk179.59 per kilogram and Sonali at Tk269.64 per kilogram. The price of each egg was fixed at Tk11.87 piece, translating to Tk142.44 per dozen.

Despite price caps imposed by the government, market visits to Karwan Bazar, Kalyanpur, and Hatirpool revealed significant deviations from the set prices for eggs and broiler chickens.

Eggs are currently being sold for Tk165-170 per dozen, while broiler chicken is priced between Tk190-200 per kilogram, and golden chicken between Tk280-290 per kilogram.

Farmers and businessmen attribute the rising prices to recent rains and floods, which have damaged crops, fish, and poultry farms, reducing supply.

Many small farmers, fearing further rainfall, have refrained from raising new poultry. Additionally, the price of chicken feed has increased significantly, further driving up the costs of poultry products.

Mohammad Abu Bakkar Siddique, an egg seller in Karwan Bazar, said, "We cannot buy at the government-fixed price. Moreover, we are receiving fewer eggs than we demand. If we ask for 3,000 eggs daily, the wholesaler only gives us 2,000. For the last month, I have been receiving less than my demand."

Masud Rana, a chicken seller at Allahr Dan Broiler House in Kalyanpur, said today (4 October), "The price of broiler chicken was Tk175 per kilogram last week, and today it is Tk190. The rain has reduced the supply of chicken, causing the price to rise."

Ibrahim Khalil, a buyer in Karwan Bazar, said, "I used to eat an egg every morning, but now I eat one every two days. I still make sure my children eat one daily, but I have had to cut back on chicken purchases too."

According to the Bangladesh Poultry Association, the daily national demand for eggs is around 4 crore pieces, while production is about 4.5 crore pieces. Despite this surplus, egg prices continue to rise due to higher production costs.

Sumon Hawlader, president of the Poultry Association, said, "Although the country does not fully rely on imports for feed production, the price of feed has doubled due to claims of dollar shortages and the impact of the Ukraine-Russia war."

Feed constitutes 75% of the cost of producing eggs and chickens, with corporate farms producing eggs at a cost of Tk8.40 each, compared to Tk10.29 for small farmers. Broiler chickens cost Tk155-170 per kilogram for small farmers, while corporate groups produce them for Tk120-130.

Sumon added that if feed prices do not drop, many small farmers might be forced to shut down their farms.

Department of Livestock Services said the prices were determined based on consultations with a Joint Working Group comprising representatives from the department and various organisations in the poultry sector.

While the Department of Agricultural Marketing set the prices, it lacks the authority to impose penalties on those not complying with these rates.

The department can only monitor the market and lodge complaints with a judicial magistrate if violations occur. As a result, the agency's pricing guidelines are often not enforced at the grassroots level.

The government's market monitoring is managed by 11 organisations, including the Directorate of National Consumer Rights Protection, the Trading Corporation of Bangladesh, and the Bangladesh Standards and Testing Institution.

These organisations take action when prices rise, especially during periods like Ramadan, but their efforts rarely have a lasting impact on the market.

According to TCB estimates, the price of broiler chicken has increased by 10.61% in a month, while the price of eggs has risen by 4.72%.

Ghulam Rahman, former president of the Consumers Association of Bangladesh, said, "Maintaining law and order, normalising the economy, and controlling the prices of essential commodities should be the government's top priorities."

As essential animal protein sources for low-income families, eggs and broiler chickens are becoming increasingly unaffordable.

Vegetable prices also surge

In addition to poultry products, vegetable prices have also surged by Tk10-15 per kilogram in the past week.

Continuous rainfall has reduced the supply of vegetables in wholesale markets across the capital.

Mehedi Hasan, a vegetable seller in Karwan Bazar, said, "Fewer vegetable trucks are arriving due to the rain, so with high demand and low supply, prices have increased."

Vegetables like ridge gourd, previously priced at Tk55 per kilogram, are now Tk70, while brinjal has risen from Tk50 to Tk60 per kilogram. The prices of almost all vegetables, except papaya, have crossed Tk60 per kilogram, with green chilli selling at Tk320-360 per kilogram.

Meanwhile, the prices of rice, potatoes, onions, and garlic have remained high.

Domestic onions are selling for Tk120 per kilogram, potatoes at Tk60, and garlic at Tk230.

Nazirshail rice costs Tk75-78 per kilogram, while medium-quality BR28 rice is priced at Tk58-60 per kilogram.