Consumers feel the heat as spice prices spike ahead of Eid

Spices are at the heart of Eid-ul-Adha feasts, adding depth, variety, and aromatic flavours to traditional meat dishes. With the festival only days away, such essential commodities have recently seen a further rise in prices, adding to the already existing upward trend.

Retailers attribute the hike to higher wholesale prices, while wholesalers blame rising dollar prices and transportation costs.

Year-on-year data from the Trading Corporation of Bangladesh (TCB) show that prices of most spices have increased by 20% to 76% compared to last year.

The price hike affects cinnamon, cumin, cloves, cardamom, bay leaves, black pepper, ginger, garlic, and onion, with prices rising by Tk20 to Tk1,200 per kg for both retail and wholesale purchases.

AHM Shafiquzzaman, director general of the Directorate of National Consumers' Rights Protection, said last month, "The spices for Eid-ul-Adha were imported three months ago. There is no reason to increase prices under the pretext of not being able to open LCs due to the dollar crisis. There is no problem opening LCs for the import of essential everyday items."

However, the spice market in Chattogram's Khatungonj, one of the country's largest wholesale markets for consumer goods, has been experiencing volatility.

Spice prices have been rising at an abnormal rate over the past month leading up to Eid-ul-Adha, with traders citing various reasons, including low supply.

Consumers nationwide are feeling the pinch of this price hike, blaming it on a lack of market monitoring and administrative negligence. Market visits show that prices have increased further in the last two days.

Md Aman Ullah, a Chattogram resident shopping for spices at Kazi Deuri Bazar, said, "I have told my family to use spices in vegetables only when absolutely necessary. Even a year ago, small amounts of spices could be bought retail for Tk10-20. But now nothing is available under Tk20."

The product is currently being sold in the retail market at Tk3,300-3,800 per kg, up from Tk3,000 a month ago. A year ago, a kilogram of dry cardamom cost Tk1,500 wholesale. 

Among dry spices, cumin was sold wholesale at Tk670 per kg. A year and a half ago, the price was Tk350. Currently, it is being sold retail for Tk700 per kg, up from Tk600 a month ago.

The price of black pepper has increased by Tk100-150 per kg in wholesale markets over the past two days. It is currently selling for Tk1,050 per kg wholesale and Tk1,000-1,200 per kg retail, compared to Tk800 per kg retail and Tk650-670 per kg wholesale a month ago. Prices have more than doubled compared to a year ago.

The retail price of cloves has decreased slightly to Tk1,800 per kg compared to last month's Tk2,000. However, it remains higher than last year's price of Tk1,500 per kg retail. The wholesale price in Khatunganj has decreased to Tk1,360 per kg.

Cinnamon prices have risen over the past year, currently selling for Tk500-550 per kg retail, compared to Tk320 a year ago. The wholesale price is Tk380 per kg (broken) and Tk480 per kg (stick). Prices were slightly lower a month ago, at Tk480-500 per kg retail.

The price of bay leaves has doubled in a year and is currently selling at Tk200 per kg retail. The price has remained stable for the past three months.

Amar Kanti Das, senior vice president of the Bangladesh Wholesale Spice Traders Association, attributed the price increase to several factors, including the dollar crisis, pre-Eid hikes, and rising prices in India.

He also mentioned the disruption in the cardamom market due to alleged fraudulent practices and expressed the hope that prices would stabilise within a few days.

It is alleged that over 50 traders in Khatungonj have lost Tk75 crore due to illegal delivery orders or slip trading in the cardamom trade, contributing to the price hike.

Among fresh spices, ginger has seen the most significant price volatility. The retail price has jumped from Tk150 to Tk280 per kg in just one month. 

Onion prices have also increased slightly from Tk70 to Tk88-90 per kg retail in a month, despite a good supply. Garlic prices have risen from Tk150 to Tk200-220 per kg retail in the past month.

Amal Saha, manager of Messrs Nazim and Brothers in Khatungonj, criticised the lack of market control and alleged manipulation by a syndicate. He said that many traders have been negatively affected by illegal delivery order trade.

Mohammad Foyez Ullah, Deputy Director, National Consumers' Right Protection Chattogram, told TBS, "Retail products have already been released from the wholesale level. Retail traders are buying at high prices and selling at high prices. Even so, market monitoring and surveillance have been continuing."

Dhaka consumers are also facing the brunt of the significant spice price hike. A visit to Karwan Bazar, the capital's main marketplace, revealed that most spices are priced above Tk200 per kg, except onions, which are currently selling at Tk90 per kg.

Mohammad Sahe Alam, a customer at a spice shop, was faced with a price increase for ginger from Tk250 to Tk300 per kg within ten days.

The seller, Saiful Islam, attributed the rise to a Tk40 per kg increase in the wholesale price of ginger. He also mentioned a Tk10 per kg increase for garlic, currently selling at Tk200 wholesale.

"Lower wholesale prices would allow us to sell at lower retail prices," Saiful explained.

Sahe Alam expressed frustration at the overall price hikes, particularly during holidays when sellers exploit high demand. "We have no choice but to buy at these inflated prices."

Ashia Begum, another customer, purchased 250 grams of cardamom for Tk900 and 250 grams of cloves for Tk400. "I wanted to buy half a kg each, but the prices forced me to buy less," she told TBS.

According to TCB, cardamom prices have seen the most significant increase at 76% per kg compared to last year. It is currently selling at Tk2,850 to Tk4,200 per kg depending on quality, compared to the Tk1,600-Tk2,400 range a year ago.

Domestic garlic prices have increased by 61.54%, now selling at Tk200-Tk220 per kg, up from Tk120-Tk140 last year.

Turmeric prices have risen by 41.18%, currently at Tk320-Tk400 per kg compared to Tk230-Tk280 a year ago.

Onions have seen a more moderate increase of 20.69%, selling at Tk85-90 per kg, compared to Tk70-75 last year.

Cinnamon prices have gone up by 21.28%, with the current range being Tk540-600 per kg, compared to Tk420-520 a year ago.

Cloves have seen an increase of 11.29%, now priced at Tk1,650-1,800 per kg, up from Tk1,500-1,600 last year.

Cumin prices, however, have remained unchanged from last year at Tk750-900 per kg.

Ali Hossain, shopkeeper at Yasin General Store in Karwan Bazar, confirmed a Tk150-200 per kg increase in black pepper prices within the past month. Black pepper is currently selling at Tk1,000 per kg wholesale.

He also noted significant increases for cardamom (Tk400-500 per kg), cinnamon (around Tk600 per kg), and cloves (Tk1,600-1,800 per kg) compared to last month. Cumin prices remain steady at Tk720-900 per kg.