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Illegal kitchen markets overrun Dhaka, mar govt revenues

Rokon Uddin
17 Aug 2024 22:34:47 | Update: 18 Aug 2024 12:57:45
Illegal kitchen markets overrun Dhaka, mar govt revenues
— TBP Photo

Unauthorised and illegal shops, along with makeshift kitchen markets, have proliferated across Dhaka, underlining a critical shortage of legitimate, fixed kitchen markets. This surge in unauthorised markets is not only encroaching on government land, roads, and footpaths but is also complicating the efforts of regulatory agencies to ensure fair pricing and maintain product quality.

Additionally, even the approved markets are often failing to adhere to necessary policies. Business insiders emphasise that in a densely populated city such as Dhaka, easily accessible and hygienic kitchen markets are essential, suggesting that each ward in the capital city should have at least one authorised market to meet the ever-growing demand and curb the spread of unauthorised street vendors.

During field visits to various parts of the capital, including Mohammadpur, Azimpur, Moghbazar, Mohakhali, Kamalapur, Maniknagar, Paltan, and Banani, this reporter observed unauthorised kitchen markets in nearly every road and lane. These illegal markets have sprung up at major intersections across the city, often occupying roads, footpaths, government land, and even canal areas. This encroachment is particularly prevalent in neighbourhoods with low-income residents.

In some areas, these markets are mobile as they operate through tri-wheeler vans, while in others, makeshift stalls are set up on the footpaths. Many residential areas have also seen the rise of these street markets. Despite lacking official authorisation, the development of these markets is reportedly backed by powerful political groups. While shopkeepers pay daily or monthly rent to conduct business on the streets, the mobile vendors are reluctant to disclose who they pay their extorted money to. When the city corporations [DNCC and DSCC] attempt to evict these unauthorised markets, these influential figures often intervene to protect them.

During a field-visit on Wednesday to areas spanning from Gopibagh to Maniknagar, and from Mugda to Khilgaon, this reporter observed hundreds of makeshift shops selling vegetables, spices, fish, meat, chicken, and grocery items. These stalls have taken over large sections of the road in front of Mugda Fish Market, near the Gopibagh railway line, and along the main road in Maniknagar. As a result, traffic frequently comes to a standstill, and pedestrians struggle to find space to walk. The situation is further exacerbated by the accumulation of garbage on the streets, leading to environmental degradation.

A shopkeeper in Maniknagar, wishing to remain anonymous, told The Business Post, "While the extortion rackets aren’t as active now, I used to pay the local police Tk 100-200 every day just to keep my shop running here. Despite this, the city corporation’s efforts to address the situation are hardly noticeable."

In response, Dhaka North City Corporation (DNCC) officials stated, "There is an opportunity to legalise some of the permanent albeit unauthorised kitchen markets by applying for a license through the city corporation and there is also a possibility to establish permanent kitchen markets under new private ownership."

However, city locals complain that illegal kitchen markets continue to spring up everywhere, despite the occasional raids by the city corporations. Even after these markets are dismantled, they quickly re-sprout with the support of political backings and law enforcement. It is the police's responsibility to ensure these markets do not reappear, but their failure to fulfil their duty has led to the current situation.

DSCC Chief Property Officer Kaizer Mohammad Farabi told The Business Post, "We conduct occasional raids to stop illegal street markets, but it’s ultimately the responsibility of the police, who patrol the streets, to monitor them around the clock. Unfortunately, we don’t have enough personnel to continuously oversee this.

"We have initiated the process of issuing licenses to kitchen markets in each ward to increase the number of permanent, authorised kitchen markets in the capital. So far, we’ve sanctioned 8-10 markets, including Shantinagar Private Kitchen Market, under the private market ownership policy, with another two to three markets currently in the pipeline," he explained.

Farabi further clarified, "We are not labelling existing markets as illegal because we are in the process of bringing them under licensing. However, if we decide not to issue licenses, those markets will then be declared illegal."

 Only 64 markets for all

According to data from the city corporations, there are 129 wards under both DNCC and DSCC, but only 64 public and privately-owned legal kitchen markets serve these areas. Of these, 8-10 are privately owned, while the rest are managed by the corporations.

DSCC, to facilitate the establishment of markets under private ownership in the capital, introduced a policy on January 12, 2023. Under this policy, individuals or organisations can establish and operate kitchen markets. To obtain a license, they must pay a fee ranging from Tk 215 to 109 per square metre. Each privately-owned kitchen market is required to have a management committee comprising seven members, including a president, vice president, and a member secretary.

To oversee market licensing, supervision, and development under private ownership, a nine-member committee has been formed, with the city corporation's chief executive serving as the president and the chief property officer as the member secretary.

However, regarding this issue, several DNCC officials were called but they were unreachable.

Market compliance

According to the DSCC policy, applicants seeking to establish privately-owned markets must adhere to several regulations, including ensuring a 6.10-metre-wide road alongside the market, providing adequate toilets for both men and women, and implementing proper waste management and sewage systems. Additionally, the sale of illegal or low-quality products is strictly prohibited.

However, in practice, these regulations are rarely enforced.

Upon visiting various fixed kitchen markets in the capital, including Segunbagicha, Shantinagar, and Mugda, it was evident that the roads are often very narrow, with inadequate sewage systems and insufficient toilet facilities. Many markets also lack basic safety measures, such as fire extinguishers.

Moreover, market committees are often elected at significant expense, leading to a disregard for the rules governing market operations.

DNCRP's limited capacity

Directorate of National Consumers' Right Protection (DNCRP) Director General AHM Shafiquzzaman, emphasised the challenges posed by the absence of market committees and the DNCRP's limited capacity to enforce regulations.

Speaking to The Business Post, the DNCRP DG said, "When our teams monitor markets that have sprung up in open spaces, on roadsides, or pavements, we face difficulties in taking action. We cannot punish offenders because these encroachers lack licenses, and there are no identifiable names or addresses to track. Without a governing committee for these markets, it is challenging to establish proper oversight. Yet, millions of people purchase their daily goods from these unauthorised markets and shops."

He acknowledged that issues persist even within the legitimate and authorised markets. “Despite the fact that these market committees have spent crores of taka, they often go unquestioned. However, now that students are actively monitoring the situation, they might take action," he hoped.

Analysts and buyers believe that these unplanned and unauthorised markets are tarnishing the city's beauty. Additionally, if these markets were regulated, the government would be able to collect significant revenue, which it is currently deprived of.

Consumers Association of Bangladesh (CAB) President Ghulam Rahman remarked, “Markets are being set up wherever people please, turning the entire city into one big kitchen market. This not only destroys the natural environment but also mars the city's aesthetic appeal. There is a proper process for market development, which also generates revenue for the government. However, the government's inability to control this issue is leading to a significant loss of revenue.”

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