By Asif Showkat Kallol (Dhaka Bureau)
It has been over a week since Bangladesh’s finance minister unveiled a budget promising tax cuts on dozens of essential commodities to ease the burden on inflation-hit consumers. However, shoppers across the country are finding absolutely no evidence of relief at local retail markets.
On June 11, Finance and Planning Minister Amir Khasru Mahmud Chowdhury presented a Tk 9.38 trillion budget for the 2026-27 fiscal year, scheduled to take effect on July 1. The budget proposed duty and tax reductions on around 60 essential products- including rice, wheat, potatoes, livestock, poultry, fish, onions, garlic, edible oil, and various spices- with the stated aim of containing inflation and lowering the cost of living. Yet, in reality, this ‘budgetary relief’ remains nothing more than an invisible paper promise for ordinary citizens.
Market on Fire: Unchanged and Unaffordable
Visits to several kitchen markets in the capital city of Dhaka this week revealed that despite government financial measures and tariff-cut announcements, retail prices remain largely unchanged. Major staples, vegetables, fish, and meat continue to sell at levels many consumers describe as completely unaffordable.
Traders argue that the benefits of the government’s fiscal policies have yet to trickle down to the wholesale market. Md Babu Mia, a retailer at Town Hall Market in Mohammadpur, explained- ‘Whatever the government announces, the market operates according to its own dynamics. Unless mill owners and wholesalers reduce their prices, we cannot sell goods more cheaply. The authorities need to ensure price reductions directly at the source.’
No Respite in Rice Prices Despite Boro Harvest
Rice, the primary staple, remains the biggest concern for consumers. Even though the annual Boro harvesting season has recently concluded, rice prices are showing no signs of easing.
* Miniket rice is currently selling for Tk 70 to Tk 85 per kilogram, while coarse rice is priced at around Tk 50 to Tk 52.
* Most shockingly, premium-quality Polao rice is still selling for as much as Tk 190 per kilogram.
Market insiders blame illegal stockpiling and syndication for this persistent price pressure. Md Riad Hossain, a rice shop owner, noted, ‘The Boro harvest is over, but rice prices aren’t falling. Large traders have hoarded warehouses, and mills continue to sell old stock at high prices. Unless strict action is taken against mill owners, consumers will see no benefit.’
Supply Chain Deficiencies and Transportation Costs
Vendors point to rising transportation and production costs as the primary obstacles preventing vegetable and other daily commodity prices from dropping. A vegetable seller at New Market stated that fuel price hikes have driven up expenses across the entire supply chain, forcing them to purchase goods from wholesalers at premium rates.
According to economists, mere tax and tariff reductions are not a permanent solution for curbing inflation or restoring purchasing power in Bangladesh. They argue that structural issues within supply chains, a lack of strict market monitoring, the dominance of aggressive syndicates, and weak enforcement of competition rules prevent the benefits of good government policies from reaching the consumer’s shopping bag.
Ultimately, for millions of ordinary households fighting a daily battle against the skyrocketing cost of living, the promised relief of this massive budget remains entirely meaningless at the checkout counter.
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The Writer:
Asif Showkat Kallol: Works for a German-based online outlet, The Mirror Asia, as Head of News and is a Contributor at Pressenza- Dhaka Bureau.
