Green chilli still red-hot despite import
93 tonnes brought in so far as local production falls
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Volatility persists in the green chilli market due to slow progress in imports and a significant decline in summer crop production, leading to retail prices of Tk 500-800 per kilogram in the city on Sunday.
Since June 26, when the agriculture ministry allowed imports in response to soaring domestic prices, private importers have managed to bring in only 93 tonnes of green chillies.
In an effort to facilitate imports, the Ministry of Commerce (MoC) has requested the National Board of Revenue (NBR) to prioritise the release of trucks carrying chillies.
According to the quarantine wing, the Ministry of Agriculture (MoA) has granted permission for private companies to import a total of 36,830 tonnes of green chillies.
However, as of July 2 afternoon, only 93 tonnes have entered the country. Before the Eid vacation, only 38 tonnes were imported, with an additional 55 tonnes arriving after Eid, as reported by the quarantine wing.
The green chilli market has experienced significant volatility, with prices ranging from Tk 500 to 800 per kilogram in Dhaka and other urban areas across the country over the past two days.
According to kitchen market sources, prices have risen by 70-90 per cent within a week and 500-600 per cent in the past two weeks.
Assistant Director of the Department of Agricultural Marketing (DAM), T M Rashed Khan, said that different markets and regions have varying prices due to a severe supply shortage. In summer chilli hubs such as Pabna, Rajshahi, Rangpur, Dinajpur, Kushtia and Faridpur, prices have reached an all-time high of Tk 300-350 per kilogram.
He also noted that retail prices in the city are 70-100 per cent higher than the DAM-fixed maximum retail price (MRP) for green chillies.
Farm economist and value chain expert Prof Rashidul Hasan attributed the 60-70 per cent decrease in summer chilli production this year to drought conditions in April-May and heavy rainfall in June.
He said the country's daily demand for green chillies could be 1200-1500 tonnes, but the current availability is less than 300 tonnes.
He said imports should reach at least 200 tonnes per day to have an impact on the market. He also stressed significantly increasing the summer production for a permanent solution.
In the meantime, the Ministry of Commerce has urged the National Board of Revenue (NBR) to expedite customs formalities for the timely release of imported trucks carrying green chillies, ensuring a smooth supply in the kitchen market.
A senior official said that the ministry has requested the revenue board to address the matter. The revenue regulator has already issued directives in this regard, as confirmed by an official.
Md Rifat Hasan, the assistant trade consultant of the commerce ministry, has been assigned to oversee the release and supply of green chillies. Concerned traders have urged for the speedy clearance of imported vehicles carrying green chillies at land ports to help maintain reasonable prices for the item, according to a high-ranking official.
SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), expressed concerns about the lack of monitoring measures before or after Eid despite the market volatility.
He mentioned that prices of green chillies, sugar and some spices have risen significantly due to inadequate monitoring by the Ministry of Commerce and related agencies.
He urged the government to ramp up the market monitoring. Hossain also called for the regular public disclosure of green chilli import costs to prevent unfair profits by traders.
According to the Bangladesh Bureau of Statistics (BBS), the country produced 0.624 million tonnes of green chillies in 2022, with 0.496 million tonnes in winter and only 0.128 million tonnes in summer.