Bangladesh’s economists, kitchen market analysts and general consumers are all hoping that the country’s economic woes ease in the New Year and stability falls on the kitchen markets.
The commoners expect that stability will return to the kitchen markets after the distress caused by high inflation has subsided. They expect that the government will take more vigorous steps to reduce the influence of syndicates in the kitchen markets.
Kitchen Market analysts said that the steps taken by the government to reduce inflation and the influence of syndicates in the year 2023, were not enough. Inflation could not be controlled due to half-hearted measures taken this year. However, according to analysts, inflation can be controlled by the middle of the current year if measures are properly taken within a short period.
The food item market in the country, which is mostly import-driven, has heated up since the Ukraine-Russia war began. Despite the price increase in locally produced food products, the total increase was relatively low.
At the beginning of 2023, a few dishonest businessmen inched up the rates of nearly all essential commodities. This resulted in the record-hitting prices of eight kitchen items which are: Chilli, broiler chickens, eggs, potatoes, onions, cumin, beef, and sugar.
Unable to loosen the syndicates' grip on kitchen markets, the government was forced to open the door to the import of many products. Also, the sale of products at subsidised prices had to be increased to regulate prices.
Along with oil, sugar and pulses, which went on sale earlier in 2023, the Trading Corporation of Bangladesh (TCB) began selling rice, potatoes and onions at subsidised prices as well.
Bangladesh experienced inflationary pressure throughout the previous year, which bled consumers dry and put them under financial strain as well as has influenced the country’s economic landscape.
Based on data revealed by the TCB on the prices of daily commodities, the country’s economists have commented to The Business Post that the inflation rate is 20 per cent higher as compared to the same period the previous year.
However, the Bangladesh Bureau of Statistics (BBS) data shows that the inflation rate has been between 8.57 per cent and 9.94 per cent in 2023, which was at single digits while, the inflation rate for 2022 was 7.70 per cent, which is a 2.15 per cent increase from 2021.
Aminul Islam, a regular shopper at Rampura kitchen market, said, “The syndicate controlled the commodity market throughout last year. They increase the price of any product whenever they want. On a pretext, prices of eight to nine products have reached record-highs throughout the year due to various reasons including supply shortage, natural calamities, dollar crisis, and increase in fuel prices.’
“On one side, regular high inflationary pressure and syndicate affect each other while commoners like us suffer. We hope that in this new year, the government will take vigorous steps to control hyperinflation and take strict measures to control syndicates, he added.
Golam Rahman, president of the Consumers Association of Bangladesh (CAB) said, “The main cause of people's suffering was high inflation which was exploited by syndicates and opportunistic traders.”
“As a result, human suffering has reached the extreme. In the new year, I hope the government will take strong steps to control inflation and that is why the monetary policy should have something to reduce inflation.”
“Strict monitoring does not work much in a free market economy. Supply needs to be increased to keep the market stable. For this, the government has to create a mechanism that can supply 25 per cent of the essential demand. This can be done through various government agencies including TCB, the Ministry of Food, and the Ministry of Agriculture.”
Apart from this, the business mentality of various government service providers, such as the energy sector, should be avoided. Business groups must stop giving special privileges.
Rokon/Avro
