Pimple Barua, Chittagong
June 19, 2023 2:17 PM
Recent domestic and international economic crises, coupled with import issues, have pushed up spice prices to record levels.
Eid-ul-Azha holds immense significance for Muslims, with food products witnessing a surge in demand during this festive period. Spices, in particular, experience a substantial increase in sales during Eid-ul-Azha. While Bangladesh has achieved self-sufficiency in livestock for Eid-ul-Azha sacrifices, the spice market continues to face challenges due to the Russia-Ukraine war, the dollar and LC (letters of credit) crises, leading to reduced imports.
Sources within the market revealed that around 90% of spices used in Bangladesh are dependent on imports.
Although the country produces some spices on a limited scale, it fails to meet the growing demand. Consequently, spices need to be imported from the global market
The ongoing crises in Syria and Afghanistan have further contributed to the surging demand for spices, particularly hot spices, in Bangladesh.
Dry hot spices in high demand include cumin, cinnamon, cardamom, pepper, bay leaves, cloves, dried whole chilies, dried whole turmeric, mustard and coriander. While mustard, black cumin, sweet cumin, bay leaf, pepper, turmeric, and coriander are produced domestically, they still need to be imported to meet domestic demand.
Other spices, such as cumin, cinnamon, cardamom, pepper, cloves, nutmeg, mace (Javitri), shahi jeera, white pepper, fenugreek, Randhuni, and star flower, are almost entirely reliant on imports. Additionally, perishable spices like onions, ginger, and garlic are partially produced domestically but heavily dependent on the global market.
China has traditionally been the largest exporter of spices to Bangladesh, followed by Indonesia. However, India has recently risen to the second position, surpassing Indonesia.
Bangladesh also imports spices from countries like Sri Lanka, Syria, Afghanistan, Pakistan, Madagascar, Guatemala, Turkey, Egypt, Cambodia, the United Arab Emirates, Singapore, Thailand, Vietnam, Caribbean Islands, Ethiopia and Myanmar. Of late, the import of spices from top countries has seen an upsurge due to global changes, with Bangladesh importing over 100,000 tons of dry spices annually.
The wholesale prices of various spices provide insight into the soaring costs. Indian cumin is now being sold at Tk770 to Tk800 per kilogram, while cumin from other sources, including Afghanistan, costs up to Tk850 per kilogram. Just a year ago, cumin prices ranged from Tk300 to Tk350 per kilogram. Cinnamon, which was previously priced between Tk210 and Tk250 per kilogram, is currently wholesale at Tk320.
Pepper prices have surged from Tk150-650 to Tk670 per kilogram, cardamom has seen an increase of several hundred taka to Tk1,500 per kilogram, cloves have risen by at least Tk700 to Tk1,500 per kilogram, sweet cumin has witnessed an increment of Tk200 to Tk310 per kilogram, coriander prices have climbed by Tk50-60 to a maximum of Tk180 per kilogram, and fenugreek has increased from Tk20 to Tk130 per kilogram.
Black cumin has seen a rise of Tk50-70 to Tk250 per kilogram, shahi cumin has surged from Tk350-400 to Tk850 per kilogram, Randhuni has increased by Tk50-200 to Tk220 per kilogram, and mustard prices have jumped from Tk40-50 to Tk 95-105 per kilogram.
Star Flower has seen a substantial increase from Tk200-250 to Tk1,280-Tk1,300, and bay leaves have risen by Tk15-20 to Tk85-90 per kilogram.
Selim Chowdhury, proprietor of Rahim Trade in Khatunganj, the country's largest wholesale market for consumer goods, said the quantity of spices being imported falls far short of the country's requirements. With the demand for spices soaring during Eid-ul-Azha, the prices of imported spices have risen due to various factors, including the dollar crisis.
He believes that resolving the import crisis is crucial for stabilizing the spice market in Bangladesh.
Among perishable spice products, onions are currently priced between Tk70-80 per kilogram in the wholesale market. The halt in onion imports from India has led to an increase in prices within the country. Moreover, the Chinese ginger and garlic markets have become unstable due to the import crisis, resulting in high prices for ginger from Myanmar and Indonesia.
With the domestic ginger season yet to commence, consumers should brace themselves for high ginger prices during the upcoming Eid-ul-Azha. Chinese garlic remains in high demand, but due to limited imports, prices for Indian and domestic garlic have also surged. Garlic is currently being sold at almost double the price compared to last year.
Additionally, the price of dry chilies, a key spice product in the country, has reached record highs. Earlier, dry chili prices ranged from a minimum of Tk100 (in season) to a maximum of Tk250 per kilogram. However, over the past year, the price has hit a record high of Tk500 per kilogram. Presently, the price of dry chilies fluctuates between Tk320 and Tk450, despite a slight decrease.
On the other hand, the market for whole turmeric provides some relief to buyers. While previously sold between Tk100 and Tk110 per kilogram, domestic and imported turmeric is now priced between Tk125 and Tk130. Although turmeric and pepper are produced domestically, traders import them from India to meet the demand for high-quality spices.
Asim Kumar Das, owner of M/s Asim Enterprises, a spice importer in Khatunganj wholesale market, explains that most of Bangladesh's spice products are imported from the global market. Previously, traders used to import goods at Tk82 to Tk84 per dollar, but the price of the dollar has now reached Tk112.
Furthermore, the imposition of tariffs has significantly increased import costs, leading to higher spice prices than ever before.
Asim Kumar Das fears that there may be a shortage of spices in the country during Eid-ul-Azha due to the increased duties on spice imports, treating them as luxury products.
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1 taka = 0.00924 USD
1 usd = 108.18000 taka
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https://www.dhakatribune.com/bangladesh/2023/06/19/spices-get-costlier-ahead-of-eid-ul-azha
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