Spice market heats up due to supply shortage

Supply shortage – resulting from a disruption in imports caused by dollar crises and regulatory duties – has driven up the spice prices in the last three months.

Besides, a syndicate of unscrupulous traders intending to make excess profit amid the increased demand ahead of Eid-ul-Azha has destabilised the spice market even more in the recent months, said market insiders.

Spice importers and traders said the price of spices in the international market has not increased much, except for cumin (jira). Rather, the prices of a number of spices have dropped recently.

According to retailers and wholesalers, spice prices have increased by 50%-100% in the last few months. Among these, the price of cumin – a staple garam masala for middle-class consumers – almost doubled.

Currently, cumin sales at Tk770-Tk850 per kg at the wholesale level, while at the retail level, its price is around Tk1,000. Three months ago, cumin sold at Tk350-Tk400, around Tk450 less than the current price, said traders in Chattogram's Khatunganj market, one of the biggest wholesale markets in the country.

Similarly, the cardamom price has jumped by Tk400 to reach Tk1,500 per kg, cloves price by Tk800 to reach Tk1,500 per kg, nutmeg by Tk1,000 to stand at Tk3,000 per kg, fennel seed (mouri) by Tk200 to reach Tk310 per kg, black pepper by Tk150 to hit Tk670 per kg, and jayotree (mace) by Tk150 to stand at Tk750 per kg.

Moreover, the cinnamon price has increased by Tk70 to reach Tk320, coriander by Tk60 to Tk180, mustard by Tk50 to Tk105, and tejpata (bay leaf) increased by Tk20 to Tk90.

The prices of ginger and garlic imported from China are also volatile in the market due to supply shortage. Currently, the price of ginger imported from Myanmar and Vietnam has reached Tk260-280, which previously was Tk140. The price of Chinese garlic has also reached Tk250, which earlier sold at Tk120 per kg.

The price of red chilli usually fluctuates between Tk150 to TK250, but currently it sells at Tk450-Tk500. The current price of dried turmeric is Tk125-130 per kg.

Currently, Indian onion sales at Tk25-Tk45, while local onion sales at Tk50-Tk52 per kg, which reached Tk100 until the government allowed the import of the product a few days ago.

Asim Kumar Dash, owner of spice importing company Asim Enterprise in Khatunganj, said most of the spices sold in Bangladesh are imported from abroad. At one time, traders had to spend Tk82-84 per dollar for importing goods, but recently the dollar price shot up as high as Tk112, which caused a hike in spice prices.

Besides, the cost of importing goods has increased manifold due to the imposition of regulatory duties on luxury products, he added.

Nazim Uddin, an importer in Khatunganj, said the volume of spices imported to the country has dropped significantly in recent times, while the demand for the product increased several times on the occasion of Eid al-Azha.

"There is no chance for the country's spice market to return to stability without solving the import crisis," he added.

Idris Mia, general secretary of Khatunganj Raw Spice Traders Association (Hamidullah Market), told TBS, "The government stopped onion imports during the season to encourage local farmers to produce. It is a good initiative for long-term planning even if the consumers suffer a bit. However, it should be ensured that the farmers get a fair price.

"When the price shot up too high, the authorities gave permission to allow imports, which has driven down the onion price again."