Mahamud Ali, a resident of Basila in the capital, lives with his family of seven in a house built on ancestral land. Unlike previous years when electric fans were sufficient, this year they are not effective in the current heat wave. Now, even with fans running, the air feels hotter, pushing him to consider installing an air conditioner (AC) at home.
This leads to the dilemma of how to afford this additional expense, and he mentions that dipping into savings seems to be the only option to purchase an AC.
This situation is not unique. Products like ACs and air coolers, once considered luxury goods, have now become essential. As a result, many middle-class families are using their savings to purchase these cooling appliances. Those who cannot afford them are opting for new fans, and those unable to buy new fans are rushing to shops to repair with old ones, hoping for some relief from the relentless heat.
A severe heatwave is ongoing across the country, including the capital, with temperatures fluctuating around 40-degrees Celsius. The intense heat has made it difficult to sleep both during the day and at night. With the rising temperature, the prices of various cooling devices like ACs, room coolers, and fans have also increased. AC prices have gone up by 3,000 to 5,000 taka within a week, and fan prices have increased by 400 to 1,000 taka.
Kabir Hossain from Mirpur visited Gulistan’s Stadium Market hoping to find an AC at a slightly lower price. He expresses his frustration with the unbearable heat, noting that fans are no longer effective.
“Middle-class people like us are suffering the most. We can neither go this way nor that. The fan runs 24 hours with no benefit. I’ve come here to buy an AC. Two weeks ago, an AC that cost between 45,000 to 52,000 taka is now over 60,000 taka. If I can’t find one here, I’ll consider buying a used one for around 18,000 to 20,000 taka,” he said.
Istiaq Alam, an electronics dealer, explains, “At the beginning of last month, an AC priced at 35,000 taka has gone up to 38,000 taka within 15-20 days due to a dollar crisis and shipment delays. This forces buyers to pay more as dealers raised prices citing various excuses including supply shortages.”
Data shows that the country sells ACs worth 5,000 crore taka annually, with the highest sales occurring during April, May and June. Currently, demand for ACs has increased by 30 percent, and manufacturers are struggling to meet this surge of demand. The market needs around 500,000 units annually for residential uses, which could reach 600,000 units this year.
The cost of living has risen for all due to the heat, impacting everything from bank liquidity to the overall economy.
Economist Dr. Mahfuz Kabir comments, “The heat has significantly increased the living expenses of the middle and lower-income groups, adding to inflation and reducing their real income. As middle-class savings decreases, national savings also declines. The banking sector is already facing a liquidity crisis, and a reduction in savings could have negative implications.”
