Casting a gloom over the spice traders’ expectation of having a brisk business ahead of the holy Eid-ul-Adha, the traders perceive a bleak business future due to absence of expected sale of spices in the markets with barely four days left for the Eid.
The prices of various spices continued showing a downward trend at Khatunganj-Chaktai market in the port city of Chattogram, one of the country’s largest wholesale hubs for essentials. The markets have already shrunk by at least 40 percent compared to the last year for the economic recession triggered by the Covid-19 pandemic.
Such drastic fall in prices of spices have made the traders unhappy, who told this correspondent frustration and uncertainty have already gripped them.
Dependent almost on imports, the spice markets remain at its peak during the Eid-ul-Adha season. But this year, there is not much buying and selling in Khatunganj-Chaktai, the biggest market of the country.
SagirAhamed, Secretary of Khatunganj Business Association told The Bangladesh Post that, “In the peak of the session traders are sitting indolent as retailers are not coming to collect spices.”
More than 40 percent spices of total demand of this time still are in warehouses, said SagirAhamed, adding “We did not even think that the buyers would be so silent during the Eid-ul-Adha.”
Due to the pandemic the import of spices, barring a few, has declined. Importers and traders said a significant part of the spices has remained unsold with only less than one week before Eid.
According to Chattogram Custom House, imports of some spices have declined due to the recession.It said there is a decline in import of spices-- Ginger- 98200 tonnes in 2018-19 and 73872 tonnes in 2019-20, Cumin, 26700 tonnes in 2019 and 24200 tonnes in 2019-20, Cardamom 4396 tonnes in 2018-19 and 2650 tonnesin 2019-20, Coriander 1746 tonnes in 2018-19, and 1338 tonnes in 2019-20.
Imports of some spices have increased despite the recession: Garlic 64796 tonnes in 2018-19 and 91865 tonnes in 2019-20, Turmeric 3601 tonnes in 2018-19 and 4373 tonnes in 2019-20, Pepper 1423 tonnesin 2018-19 and 1853 tonnesin 2019-20, Cloves 1217 tonnesin 2018-19 and 1594 tonnes in 2019-20. Letter of Credits(LCs) for importing these spices were opened before the epidemic began.
SoliamanBadsha, former president of Khatunganj Merchant Samithi, said the total spice market has fallen by more than 50 percent. Most of the items remain unsold in the warehouses.
“Since the pandemic began four months before, the sale of spices has been declining due to the closure of hotels, restaurants and large feasts’, though the sales were expected on the occasion of Eid but it has not been fulfilled, he added.
In this week atKhatunganj, the wholesale market for consumer goods in Chattogram, cumin (Indian) is being sold at Tk 290-310 per kg, Iranian cumin at Tk 320 per kg, cinnamon (China) at Tk 280 to 285 and cinnamon (Vietnam) at Tk 340. Black pepper is being sold at Tk 360 per kg, cloves at Tk 360 per kg, Bay leaves at Tk 60 per kg, coriander at Tk 70 per kg and good quality Coriander at Tk 80 per kg. Sweet cumin is being sold at Tk100 to 110 per kg. Cardamom is being sold at Tk 2500-2600 per kg.
Traders in the sector have promised to reduce the prices of spices by 10 to 25 per cent ahead of the upcoming Eidin this time of coronavirus outbreak this year.
SagirAhamed said items are being sold at lower prices than the prices fixed by the government. It is important for businessmen in the sector now to get back the money that was invested in the market.
Quick opening of hotels and restaurants and tourism outlets and lifting of the ban on big feastswill repair the damage of the spice traders at least a little bit, he added.