Potato, onion, egg prices capped to check soaring food inflation

Highlights: 

• Commerce Minister Tipu Munshi said the prices have been determined by taking into consideration the costs and profits at the producer, wholesale and retail levels. 
• He said strict action will be taken against anyone who maintains illegal stock or commits any other illegal activities to gain more profits
• The government will allow imports of eggs if traders do not follow the government-set rates. 
• If there is a complaint of selling potatoes at a higher price from the cold storage, the potatoes will be sold at the fixed-rate by auction
• Directorate of National Consumer Rights Protection will monitor the market of the three agricultural products from Friday

The commerce ministry has fixed the maximum retail prices of potatoes at Tk35-36 per kg, local variety onions at Tk64-65, and farm eggs at Tk12 each, in a move to rein in the runaway food inflation in the country.

Currently, potatoes are selling at Tk45-50 per kg, local variety onions at Tk70-80, and farm eggs at Tk12-13 each in the retail market.

At the "Agricultural Product Price Review" meeting, the ministry also set Tk26-27 for per kilogram of potatoes at the cold storage stage, Tk53-54 for local variety onions at the wholesale stage, and Tk10.50 for each egg at the production stage.

Chaired by Senior Commerce Secretary Tapan Kanti Ghosh, Fisheries and Livestock Secretary Nahid Rashid, Agriculture Secretary Wahida Akter, and representatives from the trade and tariff commission, consumer rights directorate, agricultural extension directorate, agricultural marketing directorate, livestock directorate, cold storage association, and National Board of Revenue were present at the meeting, held at the commerce ministry on Wednesday.

Commerce Minister Tipu Munshi, who announced the decisions at a press conference on Thursday, said the prices have been determined by taking into consideration the costs and profits at the producer, wholesale, and retail levels.

"No one gets hurt here. Strict action will be taken against anyone who maintains illegal stock or commits any other illegal activities to gain more profit," he warned errant traders.

Tipu Munshi said if traders do not follow the government-set rates for eggs, imports will be permitted, adding that applications seeking permission to import eggs have already been filed with the ministry.

"Apart from this, if there is a complaint about selling potatoes at a higher price from the cold storage, the potatoes will be sold at the fixed price by auction," he added.

According to the commerce ministry, the Directorate of National Consumer Rights Protection will monitor the market for the three agricultural products starting today. 

Additionally, officials at the district and upazila administrations, agriculture, and livestock ministries will work in the field. Those responsible will be punished according to the law.

According to the report presented at the meeting, 1.12 crore tonnes of potatoes have been produced in the country this year, which is 2.83% more than last year. Potatoes are stored in cold storage from February to April. 

This year, the average price of potatoes during storage was Tk12 per kg. And the storage cost per kg is Tk5-6. As a result, there is no reason for the price of potatoes to be Tk45 or more.

According to the livestock directorate, the supply of eggs this year is 134.58 crore pieces more than the country's demand. There is no reason to increase the price of eggs, even with an excess supply. In neighbouring India, red eggs are being sold at Tk6.50 and white eggs at Tk5 apiece.

Besides, there is no shortage of supply considering the local production and imports against the demand for onions. The Bangladesh Trade and Tariff Commission feels that the maximum retail price of domestic varieties in the market may be Tk64-65.

At the same time, the commerce minister also announced a reduction in the price of soybean oil by Tk5 per litre. From now until further notice, bottled soybean oil will be sold at Tk169 per litre and loose palm oil at Tk124.

There has been a lot of volatility in the potato, onion, and egg markets for the past few months. Eggs were sold at Tk15 or more per piece. Potatoes are being sold at Tk45-50, the highest in the past few years. Onion prices also suddenly increased by Tk20-25 per kg.

In this situation, food price inflation soared to 12.54% in August, the highest in the last 12 years. Planning Minister MA Mannan said on Tuesday that food inflation has increased due to the price of eggs and chicken.

Experts say even though there is sufficient supply through production and imports as per demand, the prices of some products have increased unreasonably only because of the weakness of market management. When a section of businesses are making extra profits, wage-earners and low-income people are struggling to survive due to the increase in the prices of food products. Many people are reducing demand by consuming low-nutritional-quality food.

The experts have suggested increasing the income of the common people, maintaining a normal supply of products in the market, and enforcing laws strictly to ensure fair management in the market.

In response to a question from journalists about the export of hilsa to India, Tipu Munshi said the fish is not exported to India throughout the year. A small amount of what is produced in the country is exported as a greeting gift to Indian Bengalis on the occasion of Puja.

Asked how much would be exported, he said not more than four to five thousand tonnes.