Traders frustrated with Ramadan sales, consumers at a loss

The prices of broiler chicken have hiked above 50%, flour 56% and sugar 48% over the past year, as reflected in the data from the Trading Corporation of Bangladesh. The commodities such as chickpeas, edible oil, pulses, dates, and garlic which see higher demand in the fasting month of Ramadan are also selling at higher prices.

The unprecedented price hikes ultimately result in a drastic fall in retail sales compared to that of the same time in previous years – a situation that Bangladesh never witnessed.

"In the past, we used to see a rush for grocery shopping in the previous week of Ramadan. The Fridays were the busiest days for us. But this year's situation is completely different," Ali Hossain, shopkeeper of Yasin General Store in the capital's Karwan Bazar, said while talking to The Business Standard.

"Our overall sales have now come down to just half. We have not even seen our regular number of customers today [Friday]. The abnormal price hikes is the reason, perhaps," he added.

"At such a time, we would sell worth Tk15,000-20,000 each day, which now declined to Tk5,000-6,000. It is nothing higher than our regular sales at all," said Md Shadhon, another Karwan Bazar-based trader, echoing Ali Hossain. 

Traders at several other kitchen markets in the capital said the same and estimated that their sales fell by nearly 50% of what they used to sell on the days ahead of Ramadan. Frustrations are also gripping consumers, particularly the middle and lower-income ones, as they feel at a loss while visiting markets for daily shopping.

Meet Mohammad Israphil, who works at a restaurant in the capital Kalabagan area and earns Tk16,000 per month.  "We are a five-member family while I am the only earring person. My elder daughter has already dropped out of school due to financial difficulty. We, however, are trying our best to support our two other daughters to continue their education. Hence, we have started to compromise with our other expenses."

"I came here [Karwan Bazar] to buy necessities for Ramadan, but bagged a little. Even the most essential item chicken cannot be purchased for skyrocketed prices. I don't know how I will manage my family in the future days," he told TBS, adding that he has been avoiding protein items for the last two months.

"Prices of almost everything have surged, but our salaries remain unchanged."

Another consumer from the Nakhalpara area, Mukta Begum, told The Business Standard that they are in a survival fight. "Prices of daily items are spiralling. We have no choice but to spend all our earnings just to pay house rent and buy food. The situation has arrived at such a difficult level that we are about to die."  

Criticising the government's move to sell commodities at subsidised prices, she said, "TCB cards are not available for all the people in need. Last year, I could take some items from the TCB outlets by standing in queues but this time it is impossible."

Consumers Association of Bangladesh President Ghulam Rahman believes that the government's subsidy on commodity prices is not enough. "Currently, some 1 crore are getting subsidised goods, which should be available for a higher number of people as a large number of the population, who are lower-middle class, are passing days very hard. Those who are working on fixed salaries are in more difficulty."

The government should keep an eye on markets so that there is no shortage of products during Ramadan, he said and added that a strong supply chain can prevent further price hikes.

"Businesspeople will not do business without profit, but what is common in different parts of the world is that when a festive season comes, they make less profit amid higher sales. Our traders, however, make higher profits at such times," Ghulam Rahman observed and called for strong market monitoring.

Vegetable prices jump over week

The price of vegetables jumped by Tk10-40 per kg within a week. For example, a kg of brinjal was Tk40 per kg last week, which sold at Tk70 at Karwan Bazar yesterday. Similarly, prices of tomatoes increased to Tk40 from Tk20 and snake gourd to Tk70 from Tk40.

Lemons were seen selling at Tk120 per dozen, green chilli at Tk100 per kg, while prices of onion, potato and some other items were found normal on Friday.