Business bleak at Khatunganj spice hub despite looming Eid season

Highlights

• Eid demand surge is missing
• Traders report heavy losses
• Import and stock levels remain normal.
• Declining number of buyers and seasonal traders
• Prices are unstable and mostly falling
• Multiple structural problems hurting trade
• Rising negative impact of smuggled goods 

Chattogram's Khatunganj, the largest wholesale market of the country, is experiencing an unexpectedly weak Eid trading season of spices as import dependence, price volatility, falling customer inflows and logistics disruptions weigh heavily on business activity.

Speaking to TBS, traders said the market, which usually sees strong seasonal demand ahead of Eid, is this year operating far below expectations, with both sales and customer turnout significantly reduced.

Spice trader Md Jasim Uddin said, "This year we have never seen such losses. Even during the Eid season, the market is not active. Sales are down but costs remain the same. We are incurring losses every day."

Business owners said seasonal traders from different districts, who earlier travelled to Khatunganj to purchase wholesale spices for resale in local markets, are now largely absent. This shift has reduced both competition and customer volume in the wholesale hub.

Logistics constraints and shifting trade routes

Traders attributed the downturn partly to long-standing traffic congestion and logistical bottlenecks in the area. Delays in truck entry, unloading and transportation have increased costs and waiting times, prompting many retailers to shift towards alternative wholesale centres such as Pahartali and Feni.

They also said that a growing share of imported goods arriving at Chittagong Port is now being dispatched directly to final destinations, bypassing the traditional wholesale network centred in Khatunganj, weakening its historic role in national spice distribution.

Another trader, Md Harun, said, "The business situation is extremely weak. There are hardly any sales. Customer numbers have declined sharply. The usual Eid rush is no longer there. Some illegal inflow of goods is also affecting legitimate importers and wholesalers."

Price volatility deepens losses

Traders said sharp fluctuations in spice prices have further worsened the situation. In particular, cardamom prices have fallen by around Tk600 per kilogram within a week, leaving traders who purchased at higher prices exposed to significant losses.

Cardamom prices have fallen from Tk4,300 to around Tk3,700 per kilogram.

Oversupply and weak demand

Md Mohiuddin, general secretary of the Chaktai Khatunganj Aratdar Traders Welfare Association, said supply levels remain stable due to steady imports and adequate stock positions.

He said, "There is sufficient supply of Eid-related commodities in the market. Imports and stocks are normal, so there is no shortage. In fact, supply is higher than demand, which is pushing prices down."

Mohiuddin added, "Buyer pressure is low and traders are unable to maintain prices due to excess supply. Many fear that prices may fall further, forcing some to sell at a loss to avoid deeper losses later.