Imports of spices spurt ahead of Eid

The imports of different types of species have increased before the arrival of Eid-ul-Azha, even though the prices of most spices have risen dramatically in the local markets compared to the last year.

Traders blamed the high prices of spice in the local markets on the turmoil in the international market of spices. Also, some local companies are allegedly creating artificial shortages and selling spices at high prices in the wholesale markets of Khatungonj.

This year, from April to June, 56,607 metric tonnes of 10 types of spices valued at Tk.

547 crore were imported through the Chattogram port. Chattogram Customs earned Tk. 148 crore as revenues. In contrast, from April to June 2017, only 33,431 metric tonnes of the same spices were imported, the value of which was Tk. 341 crore. Customs earned only Tk. 105 crore as revenues.Comparing to last year, in Chattogram port this year, an additional 547 metric tonnes of spices were imported in the last three months. Yet, spice prices in the local markets are high compared to last year. The imported spices are: cumin seeds, cardamom, cinnamon or cassia, finol seeds, black pepper, nutmeg, ginger, mace, garlic and turmeric.

Prior to the Eid, businessmen import more spices, taking into account the demand in the local markets. The lion’s share of the demand for spices in Bangladesh is met by imports from India. However, spices are also imported from China, Pakistan, Syria, Afghanistan, Colombia, Vietnam, Guatemala, Singapore, Indonesia, Malaysia, the UAE and some other countries.

Businessmen said in recent times, imports of spices from neighbouring countries like India have increased remarkably. The prices of Indian spices are low compared to the spices of other countries.  Indian spices dominate the markets on account of their low prices. Importers noted that in the current market, 70 to 80 per cent of all spices are from India.

Md Jamal Hossain, a spice wholesaler in Khatungonj, told The Independent, “Now, the market for spices is very much dependent on India. Spices are imported from India as well as smuggled in. Because of the smugglers, the government is losing large amounts of revenue. On the other hand, the legitimate importers are also affected.”

He explained that as the tax on spices is 65 to 70 per cent when imported through Chattogram port, smugglers choose to source them from India and bring the spices into the country illegally.

Businessmen at the wholesale market conceded that the prices of spices were high this year compared to last year.

“Last year, the price per kg of cardamom imported from Guatemala was Tk. 1,100 to Tk. 1,150. This year its price is Tk. 1,560 while the sale price of Indian cardamom per kg was Tk. 1,400 to Tk. 1,450,” said Solaiman Badsha, the president of the Businessmen’s Welfare Association of Chaktai-Khatungonj.

“This year, the price of cumin seeds is Tk. 318–330 per kg while it was about Tk. 250 last year. Earlier, most of the cumin seeds were imported from Syria and Turkey, but now they mostly come from India. Cassia is selling at Tk. 261 per kg in the wholesale market while it was Tk. 212 last year. Some specific businessmen imported cassia and they have jacked up the prices after creating artificial shortages,” he said.

However, the wholesale traders said the prices of garlic and ginger are very high as garlic is selling at Tk. 38 per kg while ginger is selling at Tk. 50–51 per kg in the wholesale market.

They added, however, that the price of black pepper has fallen by about Tk. 200 per kg compared to last year. Again, black pepper is selling at Tk. 600 per kg in the wholesale market while it was Tk. 800–900 last year.

However, the price of each spice in the retail markets varies from Tk. 50 to Tk. 200 depending on the items, said the businessmen.

When asked about the reasons for the high prices of spices, Solaiman Badsha said, “The prices of spices are high in the international market. Only a few businessmen import spices, and so, throughout the year, the market is under their control.”

According to data with the Chattogram Customs House, in the fiscal year 2017–18, 1,71,000 metric tonnes of 10 types of spices—cumin seeds, cardamom, cinnamon or cassia, finol seeds, black pepper, nutmeg, ginger, mace, garlic and turmeric—were imported, while the figure was 1,48,000 metric tonnes in the fiscal year 2016–17. Imports have increased by 23,000 metric tonnes, it observed.

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