Beef price jumps again, flouting fixed rate
Meat traders say that the reason for the sudden increase in the price of beef is that demand for beef has increased all over the country due to the elections.
- Price now jumps to Tk700-Tk750 per kg
- Meat traders blame the spike on increased demand, cattle price
- General elections, rise in public functions push up demand
- Authorities still hope for price cut to Tk500 per kg
The price of beef has jumped again by Tk50 to Tk100 per kg in the capital a month into meat traders' announcement of a cut in the skyrocketing price to Tk650.
The price rose to as high as Tk750 to Tk800 per kg until meat traders decided on 6 December to fix the price at Tk650, also hinting at raising the price again after the general elections.
The decision was not fully implemented. Now, a kg of beef is being sold at between Tk700 to Tk750 in most of the kitchen markets and chain shops in Dhaka.
Meat traders say that the reason for the sudden increase in the price of beef is that demand for beef has increased all over the country due to the elections. At the same time, there is a rise in the number of marriage ceremonies in December-January, shooting up the price. They also cited a rise in the price of cattle.
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Meanwhile, not being able to sell meat at the fixed price, some traders have reduced the sale of meat while some others have kept their shops shut, according to the traders.
Md Swapan, a meat trader in Banasree area, told The Business Standard, "We've to buy a cow weighing 100-120 kg, with the meat selling at Tk700 to Tk710 per kg, whereas the selling price is Tk650. We are counting a loss of several thousand taka by slaughtering a cow. That's why I've kept my shop closed for three days."
A visit to different places in Dhaka on Friday by the TBS correspondent revealed that super shops, including Swapna and Meena Bazar, were selling beef at Tk720 to Tk730 per kg. The price even rose to Tk750 in the neighborhood shops.
Meat traders claim that it is not possible for them to sell beef at the fixed price because of lack of funds as cattle price has increased in the wholesale market due to increased demand.
Golam Murtaza, President of Bangladesh Meat Traders Association, told TBS, "We'll hold a meeting soon and announce the new price, because it is not possible to sell beef at the current price."
After an abrupt rise in beef price, meat traders were divided into two groups over fixing the price. They also raised a hue and cry at a meeting with the Directorate of National Consumer Rights Protection (DNCRP).
However, the Dairy Farmers Association and Bangladesh Meat Traders Association finally decided to sell beef at Tk650 until 7 January.
Despite the announcement, most meat traders were selling beef at Tk700 per kg from the very beginning of the decision even though some were selling it at fixed rates.
After the decision for cutting the price was announced, consumers thronged beef shops, pushing up demand for the item.
Another meeting was supposed to be held later to review the cattle price situation as well as the beef price. But now, the price has jumped again even before the deadline is over.
At Karwan Bazar kitchen market, some traders were still selling beef at TK650 while the price was found to be Tk750 at some other shops.
"Due to the increase in beef price, traders are facing losses. Those who are selling meat at the fixed price are counting losses. Because of this, traders cannot be controlled anymore," meat traders' leader Golam Murtaza said.
He noted that people were buying beef at Tk620-TK630 a kg before the price was fixed, which has now climbed to Tk 700 or more.
As a result, traders are losing at least Tk50 per kg after slaughtering a cow. Besides, increased demand for meat due to the elections and wedding ceremonies, beef price has increased, he added.
In contrast to the rising beef price, the DNCRP Director General AHM Shafiquzzaman is contemplating bringing down the price further to Tk500.
On 1 January, during a visit to a Khalil's meat shop in Rampura, where beef was selling at Tk590, Shafiquzzaman told reporters, "The price reduction by Khalil means that there is a kind of pressure on the market."
"Many like him must come forward; then the market will be in control and no pressure will work," he added.
