Within the last couple of weeks prices of vegetables and rice increased by Tk 3 to Tk 4 per kilogram (kg).

Aubergine, potato, bitter gourd, onion, and green papaya were being sold in different city retail markets including in Karwanbazar, Hatirpool, and Kathalbagan for Tk 20 to Tk 22 yesterday. But the prices of those vegetables had been Tk 14 to Tk 16 just about a week or two ago.

Bangladesh Rifles (BDR) personnel, who are involved in the government initiative for selling essential commodities through the border security forces operated fair price markets, said the government lost control over the wholesale markets and the distribution system. To alleviate the crisis, they suggested setting up government run wholesale markets on the outskirts of the capital where farmers could directly sell their product, eliminating the cost of middlemen.

In Karwanbazar the wholesale price of Potato was Tk 18 a kilogram yesterday but in the BDR run kitchen market at Farmgate potatoes of the same quality were Tk 13.50 per kilogram. When asked, the BDR authorities said they had bought the potatoes much earlier. Within the last one month the price of potatoes increased by Tk 5 to Tk 7.

Prices of edible oils are going to go up for the second time within a month, grocery shop owners of Karwanbazar said yesterday.

"Edible oil suppliers said prices are going to go up by Tk 2 per litre next week," said a grocery shop owner.

A long queue was found even during a drizzle yesterday noon at the BDR managed fair price sales centre at Farmgate in the capital.

Md Mokammel Mridha, a retired person, was also in the queue. "Price hikes are making people feel helpless, prompting them to cut down expenses just to maintain their families," he said.

Prices of rice rose by Tk 2 to Tk 3 in a month. Most of the coarse rice are being sold for Tk 20 or more. Within the last one year the prices of rice increased by 25 percent on an average, and the prices of edible oils, wheat and potato rose by 50 percent, 25 to 30 percent, and 25 percent respectively.

The Centre for Policy Dialogue (CPD) recently conducted a study on the current price hike of essentials.

When asked about the reason for the price hike, CPD Research Director Mustafizur Rahman pointed out the increase in domestic production cost due to rising fuel and fertilizer prices, and a price hike in the international market. He also mentioned the present government's initial move against hoarders as a reason for the current spree of price hikes.

Several middlemen's profit adds to the cost of transporting products from the fields to the consumers increasing the retail prices, Dr Mustafizur Rahman said.

In retail markets coarse rice are currently being sold for Tk 20, miniket for Tk 28 to Tk 30, paijam for Tk 25 to Tk 27; prices which are Tk 1 or Tk 2 per kilogram lower in wholesale markets.

The government intended to bring stability to the market with the influx of boro rice, which already started to arrive in the market. But due to the high cost and reduced production, the government had to buy boro for Tk 18 per kilogram this year, but it had to pay Tk 16 for a kilogram of the rice last year.

Demand for lentil in Bangladesh is 3,25,000 metric ton, but it is producing only 1,25,000 metric ton, while in the international market, the price of lentil increased rapidly. In 2002-03 the price was 300 dollars per metric ton, which now is 700 dollars.

"India already prohibited export of lentil to meet its internal demand, contributing to the price hike of lentils here," said Dr Mustafizur Rahman.

Sources said due to the government's drive against hoarders, food importers refrained from importing lentil on time, although they have had news that its price was about to go up. In the mean time the price in the international market went up by 100 dollars.

Prices of edible oils also increased. In retail markets 37.5kg (1maund) soybean is being sold for Tk 2,470, and palm oil and palm super are being sold for Tk 2,300. Last year, the price of soybean was Tk 1, 610 while palm oil and palm super were sold for Tk 1,470 and Tk 1,490 respectively.

Vegetables have become very expensive. Price differences between rural and urban markets are also huge. Consumers in urban areas are paying three to four times more than the rural consumers.

In wholesale markets of Jessore, aubergines are selling for Tk 6 per kilogram but those aubergines are Tk 12 per kilogram in Dhaka wholesale markets, the prices of which shoots to Tk 18 to Tk 20 per kilogram in different retail markets of the city.

Bitter gourds are being sold in Karwanbazar, Kanthalbagan and Hatirpool retail markets for Tk 20 to Tk 22 per kilogram. But reports broadcast on a TV channel said bitter gourds are being sold for Tk 8 per kilogram in a village wholesale market in Narsinghdi.

BDR managed 22 open markets in the capital are selling the same vegetable for Tk 3 to Tk 4 per kilogram.

When asked, how BDR is managing to sell the vegetable for a reduced price, Col Md Mojibul Hoque, chief of Operation Dal-Bhaat 2006 and a task force commander, said complete mismanagement has a chokehold on the wholesale markets and the distribution system, the government really does not have any control on them.

"Several middlemen and extortionists are eating up the cream," said Col Mojibul.

Terming Karwanbazar wholesale market as the centre of mismanagement and extortion, Mojib suggested setting up four wholesale markets on the outskirts of the capital where farmers' cooperatives could directly sell their products.

"If the government follow this system, prices of vegetables will come down at least by Tk 4 to Tk 5 per kilogram," he said.

He however said there is no doubt that the present government is quite serious about curbing the current price hike of essentials.

The government took several initiatives to control prices, said Abu Bakkar Siddique Mollah, deputy secretary to the commerce ministry.

"The government has taken an initiative to import several food items including lentil, onion, chic pea, and edible oils through TCB," he said.

"Besides we have been regularly monitoring the market, and we think soon the prices will be controlled," he added.

The government has been examining the CPD recommendations for encouraging new importers to import different goods as only a small number of importers are currently controlling the market, Molla said.