Spice prices shoot up by 20 percent

Wholesale prices of most imported spices have surged approximately by 20 percent in the markets of the capital, shortly after a Tk 7 increase in the dollar exchange rate.

Importers and traders claim the abrupt spike is a direct result of the recent uptick in the dollar's value, which is impacting market prices.

On May 8, Bangladesh Bank raised the dollar exchange rate to Tk 117 from Tk 110.

During visits to Karwan Bazar, Kochukhet, and Moulvibazar markets in the capital, this newspaper observed that prices of most imported spices have surged.

Currently, cumin is priced at Tk 680 per kg, up from Tk 570, while the lowest wholesale price for cardamom has risen to Tk 3,200 from Tk 2,800. Another type of cardamom that was previously priced at Tk 3,200 is now being sold at Tk 3,500.

Additionally, wholesale price of white pepper has risen to Tk 1,200 from Tk 1,000. Cashew nuts are now selling at Tk 1,300, compared to Tk 1,200 earlier, while chickpeas have seen an increase from Tk 102 to Tk 108 per kg.

Riaz Hossain from Nur Traders in Karwan Bazar, who used to procure spices twice a week from the Moulvi Bazar wholesale market in Old Dhaka, expressed dismay at the recent price surge.

"Just a week ago, I purchased cumin at Tk 570-580 per kg, but now I'm having to pay Tk 700, although these spices were imported well before the new dollar rate came into effect," he said. "It appears to be the work of a syndicate, "he added.

A staffer at another store said, "Just six months ago, cardamom was priced at Tk 1700-1800 per kg, but now it's selling for Tk 3200-3300. Clearly, a syndicate is controlling the spice trade."

A spice wholesaler at Moulvi Bazar wholesale market said, "Certain importers in our market have instructed us to raise prices in line with the increased dollar rate, despite our procurement costs remaining the same."

"We have no choice but to comply with their pricing directives," he added.

Md Gofran from Cumilla General Store at Karwan Bazar said, "The price hike effects are currently limited to the wholesale market. But it will soon affect retail prices, especially with Eid Ul Azha approaching."

Contacted, SM Nazer Hossain, vice president of Consumers Rights Association of Bangladesh, said, "They increased the price as the dollar rate was raised. But do they reduce the price when the dollar rate is reduced?"

Contacted, Helal Uddin, president of Bangladesh Shop Owners Association, said, "It's normal that the prices of commodities have surged due to an increase in dollar rates. However, I call upon traders to not increase the prices too much."