Wholesalers and retailers across the country have increased prices of most essential commodities saying they are forced to purchase those goods from the companies at higher rates. The price hike row comes ahead of the proposed 2019-20 budget that comes into effect from the very first day of July next. The advance price hike ensued from the proposed VAT and tax imposed on certain essentials.
In the budget proposal, Finance Minister AHM Mustafa Kamal imposed VAT and tax on several items. At the same time due to proposed reduction in VAT on some goods prices of many goods would also decrease. The kitchen market traders, nevertheless, instead of considering to reduce the prices are waiting for budget finalization to reduce the price of the specific products.
Prices of essentials were found dearer during a visit to one of the biggest kitchen markets in the city. Milk powder was costlier by average 6 percent against its previous prices. For instance, a packet containing one kilogram (kg) of milk powder of Diploma brand is selling at Tk 610, which was Tk 590 before the budget proposal. Similarly, a packet of 500-gram powder milk of Marks brand is selling at Tk 265 which was Tk 250.
A grocery trader of Karwan Barzar kitchen market mentioned that he had to buy essentials at higher rates well before the proposed budget. “The price hike on essential items have no connection with the budget,” he said. Sugar, another daily necessity essential commodity is also costlier. In the kitchen market, price of per 40 kg of sugar sack has been increased by Tk 120. Similarly, edible oil also saw an increase of TK 90 per a sack weighing 40kg. In the proposed budget, import duty for crude sugar has been increased from Tk 2000 to Tk 3000, for refined sugar import duty has been increased from Tk 4000 to Tk 6000 and supplementary duty also increased from 20 percent to 30 percent.
Edible oil is also dearer. Based on quality prices have increased at least by Tk 50 to Tk 100 per 40 kg cans of the oil. The traders in general mentioned that most of the essential commodities are now dearer as the manufacturers have artificially increased prices. The impact is on the wholesale market and subsequently on the retail prices.