DNCRP to Verify Hiked Retail Price of FMCG Products

Due to inflation and supply chain disruption across the world, FMCG products are facing a massive hike in retail price. Therefore, the Directorate of National Consumer Right protection (DNCRP) has decided to comprise a committee of four and investigate these retail price rises. 

DNCRP has received multiple complaints from consumers about some FMCG businesses immoderately increasing their product prices. For example, a year ago, bathing soap from a well-known brand weighing 150 grams used to be sold for BDT 58 Tk, but now the price is BDT 75Tk, which is a 29% price increase. Similarly, a 500g detergent was BDT 60 Tk in January 2022, but now it’s BDT 90 Tk, which is 50% more than earlier. 

So, to shed light on this matter, a meeting was held at the directorate’s office at Karwan Bazar, involving representatives from FMCG business companies like ACI, Unilever Bangladesh, Square Toiletries, and Kollol group where they explained the reason behind a raise in their products. 

Currently, there is economic instability across the world, due to which the cost of raw materials, fuel, shipping, and transportation have increased, which has resulted in the increased price of FMCG products, the companies said. However, the four-member committee will have representatives from the Bangladesh Trade and Tariff Commission, the institute of cost and management accountants of Bangladesh, DNCRP, and FMCG manufacturing companies and will start working next week.

AHM Shafiquzzaman, director general of the DNCRP, said, “We will see the companies’ cost sheets, at what price they are buying the raw materials and then at what price they are selling the products, Only then will it be understood whether the price increases are reasonable or unreasonable. Then a report will be prepared. It will be submitted to the commerce ministry.”

Zahidul Islam Malita, chief financial officer of Unilever Bangladesh mentioned, “Questions may arise in the minds of many people whether the amount of price increase is reasonable or unreasonable. Some 80 per cent of the raw materials of our industry is imported. The increase in the price of raw materials and the dollar price hike impacted the business.” 

According to the officials present, an increased price will make consumers consume less. Considering the global situation, the price needed to be adjusted, and now the public needs to understand why.