Chicken prices soar in Dhaka before Eid

Retailers and farmers blame syndication for price gouging

When Md Badiuzzaman visited Karwan Bazar kitchen market on Thursday, the cheapest meat protein broiler chicken was priced at Tk 230 per kg, a significantly high rate with around a week of Ramadan left.

Overnight, the price went up by another Tk 20 to Tk 250 per kg ahead of Eid-ul-Fitr as many started grocery shopping for the festival.

“How can the price increase by Tk 20 in a single day?” an astonished Badiuzzaman asked trader Muhin Uddin of Faruq Broiler Chicken on Friday.

"This lot arrived last night suddenly. The rate is high. We bought it at Tk 235 to Tk 240 per kg, big and small,” Muhin explained.

Badiuzzaman left the shop without buying chickens. He went to the fish market.

“Such overnight price rises are premeditated. Otherwise, how can the price jump by Tk 20 in a day?” he said.

The price of Sonali chicken increased by Tk 10 to Tk 350 a kg.

Rezaul Kabir of Allahr Dan Chicken House, blamed widespread syndication by unscrupulous businesses for gouging.

"The government-fixed rate for big companies, including Kazi and CP, was Tk 151 [for broiler chicken]. But now they are charging Tk 195 per kg. Dealers buy those chicken and bring them to the market. We buy from them,” he said.

The product changing so many hands was another reason behind the high prices, he said.

Suman Howladar, president of Bangladesh Poultry Association or BPA, said the crisis in the market was “artificially created” by preventing marginal farmers from producing cheap chickens.

“Marginal farmers have no chicks on their farms. Those who have contracts with corporate groups get chicks. Ordinary farmers don't get chicks. Some collect chicks but at a high price.

When chickens from the marginal farmers are available, the prices remain low,” he said.

BPA said in a statement on Friday that the marginal farmers are being forced to withdraw from production as they are unable to buy chicks because of this “artificial crisis”.

It costs Tk 28 to Tk 30 to produce a chick, and the Department of Livestock Services fixed the price at Tk 63, according to the association. “But the farmers have to buy chicks at Tk 80 to 90.”

The production cost of broiler chicken feed is Tk 50 to 55 per kg while the farmers have to buy that feed at the rate of Tk 70 to 75.