Flour, aromatic rice prices spike as edible oil crisis persists in Dhaka

Prices of flour, refined flour (maida) and aromatic rice have risen sharply in Dhaka kitchen markets, adding to pressure on bakeries, biryani businesses and middle-income households amid a continued shortage of soybean oil.

A visit to markets in Shantinagar, Rampura, Badda and Shahjadpur on Friday found loose flour selling at Tk 50 per kg, up from Tk 45 last week, while the maida price climbed to Tk 80-85 per kg from Tk 70-75.

Aromatic rice prices jumped by Tk 20 per kg even after the Ministry of Commerce halved the export quota for the variety. Quality loose aromatic rice is now selling at Tk 200 per kg, up from Tk 180 a week earlier, while packaged aromatic rice ranges between Tk 220 and Tk 240 per kg. Buyers said the same rice cost only Tk 150-160 per kg a month ago.

More than a week after soybean oil prices were raised, supply has yet to return to normal. Most shops are out of bottled one-litre soybean oil, forcing many buyers to purchase costlier rice bran or sunflower oil instead.

Retailers said repeated requests to oil companies and dealers for supply have gone unanswered, adding that their per-litre commission has been cut.

They also alleged several companies are withholding soybean oil unless retailers place orders for other products alongside it.

Bakery and biryani businesses warned they will be forced to raise prices further if the trend continues.

Anwar, manager of Maa Biriyani in Badda, said they used to sell chicken polao at Tk 120 per packet but now charge Tk 150, adding that even the new price may soon become difficult to sustain amid the continued rise in costs.

Adib Rahman, owner of Adib Live Bakery in Rampura, said bakery associations have asked members to raise prices of all maida-based products by 20 percent, noting that not raising prices erodes profit while raising them drives away customers.

Buyers blamed both global volatility and a lack of government market monitoring for the price spikes, saying reduced oil supply and indiscriminate flour price hikes cannot be justified.

"There is no point in market monitoring for show. Why are not big corporate companies supplying oil to the market? They must be held accountable, otherwise consumer interest will remain ignored while companies protect only their own," said Afsana, a consumer at Rampura market.

Another buyer, Imdad, said grocery bills are rising every month due to price hikes across the board, compounding pressure from higher electricity costs on middle-income families like his.

According to the Bangladesh Bureau of Statistics (BBS), overall inflation stood at 8.26 percent in August, with food inflation at 7.02 percent. Though overall inflation eased compared to July, buyers say the relief is not visible in the market.