The prices of egg, potato, and onion in the markets in the capital remained high on Friday—the first day after the government set the prices of three locally produced food items with immediate effect amid volatile kitchen market.

An egg was sold for Tk 13, potato for Tk 48-50 a kilogram and the locally produced onion for Tk 75-80 a kilogram on the markets in the city on Friday.

The government on Thursday set the maximum retail prices for egg at Tk 12 a piece, potato at Tk 35–36 a kilogram and locally grown onion at Tk 64-65 a kilogram for the first time against the backdrop of soaring prices of the commodities.

The government also announced a reduction in the price of soya bean oil by Tk 5 per litre and palm oil by Tk 4 per litre.

Several consumers said the government set the price of commodities with political interest as it has no reflection in reality, while the retailers said their purchasing prices of the commodities from the wholesales are still higher than the government fixed retail price.

Retailers said that the price of egg may come down, but the wholesale price of potato at the cold storage level was still around Tk 35-38 a kilogram and the price of onion at wholesale level is around Tk 65-70 a kilogram, making it impossible to retail these food items at price fixed by the government.

According to the commerce ministry, the price of egg has been set at Tk 10.50 a piece at the production level and Tk 12 a piece at the retail level, potato has been set at Tk 26-27 a kilogram at the cold storage level and Tk 35-36 a kilogram at the retail level, and locally  produced onion has been set at Tk 53-54 a kilogram at the wholesale level and Tk 64-65 a kilogram at the retail level.

The government had decided in principle to allow the import of eggs to ensure a stable price in the local market.

Mohamad Raja, a wholesale trader of potato at Karwan Bazar, said, ‘The cost of a sack of potato (75 kilogram) including transportation is around Tk 2,500-2,850 and we sell it around Tk 3,200-3,500 for the last few weeks.

‘Potato supply is available. But we have to buy it at a price higher than that fixed by the government. If we can buy potatoes at the government price at the cold storage level, we can sell it at the government fixed price,’ he said.

Mintu Mollah, a wholesale trader of onions at Karwan Bazar, said, ‘Around 150 sacks of onion are unloaded (from trucks) at Karwan Bazar every day.’

‘Unload price of a sack of onion (75 kilogram) is around Tk 5,500 and we now sell it at Tk 5,650-5,700,’ he said.

Asma Akthar, a housewife, said, ‘We have to adjust our regular food habits as the prices of essentials are soaring every day.’

‘In Bangladesh prices never fall back to the previous level,’ she said.

Consumers Association of Bangladesh president Ghulam Rahman told New Age that it might take a couple of days to make the government rates for the commodities effective.

‘In the open market concept, fixing prices may not be that effective in controlling the commodity market,’ he said.

‘It’s a common phenomenon among the businesses to earn extra profit amid the inflation crisis,’ he said.

‘In this situation, ensuring a smooth supply chain of commodities to fulfill the demand of consumption is the easiest solution to overcome the rising inflation crisis,’ he said.

The Directorate of National Consumer Rights Protection has been conducting countrywide drives from Thursday to implement decisions on the prices of essential items.

DNCRP director general AHM Shafiquzzaman said three teams were conducting drives to monitor the commodity market prices in capital Dhaka from Thursday.

‘A total of 41 teams conducted drives at 53 markets in 39 districts, including capital Dhaka, and fined 90 traders Tk 2.37 lakh on Friday,’ he said.

‘A combined report on the outcome of the drive will be submitted to the commerce ministry soon,’ he said.

‘We are also arranging several meetings with the stakeholders to keep the market price stable,’ he added.

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association issued a press release on Thursday, saying that the reduced prices of edible oil would be effective from Sunday.

The prices of food items in the world market are showing a down trend for the past several months, while they are still rising in Bangladesh.