Eid cooking to get costlier as spice prices go through the roof

People will need to spend more on cooking Eid-ul-Azha dishes as prices of spices have gone through the roof in the country, mainly due to escalating prices in international markets and dollar crisis.

According to businesses in Dhaka, the cumin market is experiencing the most volatile situation. The price has more than doubled, with cumin currently selling for Tk450, compared to its regular price of Tk200-300 in the wholesale market. The price has been rising to Tk1,000 at the retail level.

The production of cumin has dropped in India, resulting in an increase in its prices in the exporting country. Consequently, there has been a decline in imports from India.

In order to fulfil its own demand, India has resorted to importing cumin from Turkey, Afghanistan and Syria. As a result, the price of the product has increased on the global market.

Traders have said that the scarcity of dollars, along with its increased value, as well as export-related challenges in various countries, have led to a surge in the prices of imported spice products and a decline in their supply. Consequently, the local market has witnessed a significant decrease in demand due to the elevated prices.

According to market analysis data from the Trading Corporation of Bangladesh (TCB), cinnamon prices have increased by 16.47%, cloves by 38%, coriander by 63%, imported ginger by 241%, local varieties of ginger by 219%, local varieties of garlic by 100%, and local varieties of onions by 81% compared to the same period last year.  

Md Rubel, a spice wholesaler in Moulvibazar, told The Business Standard, "The prices of certain spices are high, and we are witnessing the impact of import complications and rising dollar rates. However, we do not observe the usual surges in sales that typically occur ahead of Eid-ul-Azha. Sales have decreased by at least 40% compared to the same period last year."

According to data from the spice research centre in Bogura, the annual demand for spices in the country amounts to around 60 lakh tonnes, involving the use of 50 different types of spices. A little over 49 lakh tonnes of spices are produced domestically, while the remainder relies on imports. The spice market in Bangladesh currently stands at around Tk40,000 crore.

Dr Shailendra Nath Mozumder, principle scientific officer at the Spice Research Center, told TBS, "About 80% of the spices required are now produced in the country. However, certain items such as ginger, garlic, onions, and green chili still partly rely on imports despite their production here. For instance, ginger production falls short of meeting 50% of the demand. We are working to address these areas."

The price of cardamom, however, is always high. The prices have also increased slightly ahead of the festival. Traders say most of the cardamom imports come from Guatemala. A part comes from India. Due to high prices, imports from India are currently stopped, so the entire import is from Guatemala. The wholesale price of regular quality cardamom has increased by Tk150-200 to Tk1300-1500 per kg. It is selling for Tk2500-3000 in the retail market.

For several months, major complications have been created with ginger. Although ginger was imported from China, India, and Myanmar, most of it used to come from China.

Traders said they have stopped importing ginger from China for about two months due to high prices. Because of an increased dependence on domestic ginger, additional pressure has been created to import it from Myanmar. But the ginger is being sold in the local market at Tk350 per kg.

According to the commerce ministry, there is a demand for 4.5 lakh tonnes of ginger throughout the year. Where about two lakh tonnes of ginger are produced locally and the rest has to be imported.

A commerce ministry report shows there is a supply shortage of ginger in the country due to an import situation. Ginger supply is 77,000 tonnes short of demand in 11 months. Among the reasons for this are the massive price increases in the international market as well as the dollar crisis.

Compared to the eighth of this month, it can be seen that ginger is being sold in the international market at a price 172% higher than the same period of the previous year. International markets have been volatile since one of the suppliers, China, restricted exports, the report added.

The commerce ministry says that due to the suspension of ginger imports from China this year, imports are increasing from Myanmar as a new sourcing country. More than 80,000 tonnes have been brought in from the country in the first 11 months of the current financial year. The amount of the import is increasing every month, all of which is coming through Teknaf port.

Traders also say that everyday spices like onion, ginger, and garlic have been sold at higher prices for several months. This includes volatility in onion prices. About a month ago, imports were allowed when the price of onions crossed Tk100. But even though the import has started, this price has not decreased much. The local variety of onions is still Tk80 and imported onions cost around Tk30, but it is being sold at Tk50-60 per kg.

Cinnamon is used in cooking to change the taste and smell of food. This product comes mostly from China and Vietnam. This time, the price of this product is also high. According to TCB data, cinnamon price has increased by Tk100 per kg over the year to Tk500.