The prices of fine and coarse rice varieties have skyrocketed in Dhaka, with fine rice prices increasing by a staggering 404% from production stage and coarse rice prices increasing by 260% at the retail level, according to a recent study conducted by the Dhaka Chamber of Commerce and Industry (DCCI).
AKM Asaduzzaman Patwary, executive secretary (R&D, PA dept) of DCCI, presented the study findings titled “Food inflation: An analysis on price dynamics of essential commodities” at a press conference on Thursday (17 October).
The DCCI study analysed the prices of 16 essential commodities in four divisions and found that all of them are being sold at prices well above their production costs.
The study reveals that the prices of essential commodities like onion, ginger, potato, salt, turmeric, and dry chilli have skyrocketed in Dhaka.
Onions are being sold at a staggering 365.12% above production cost, while ginger, potato, salt, turmeric, and dry chilli see prices 332%, 190%, 200%, 316%, and 110% above production costs respectively.
Highlighting the concerning trend of price gouging and its impact on consumers, the study found that prices at the retail level are skyrocketing due to markups at various stages of the supply chain, including manufacturers, wholesalers, and retailers.
The price hikes are attributed to various factors, including increased production costs due to rising raw material, labour, and fuel prices, insufficient competition in the supply chain, market imbalances, increased transportation costs, market management inefficiencies, infrastructural constraints, and a lack of market monitoring. These factors contribute to additional margins at different points in the supply chain.
At the media briefing, DCCI President Ashraf Ahmed emphasised the need to assess market inefficiencies and price gaps.
He highlighted that prices are often influenced by the balance between supply and demand. Therefore, he advocated for the implementation of real-time production forecasts to better understand and manage market dynamics.