Home ›› 01 Jun 2022 ›› Editorial
With the possibility of a protracted war in Europe compounding economic travails across the globe, Bangladesh is not unaffected. Traders of essential items have used the conflict to raise the price of essentials, including rice and edible oil.
In the last two months, since the war started and the Sri Lankan economy went into a tailspin, markets in Bangladesh have shown erratic trends.
A price increase is usually seen during Ramadan, although the selling price of rice was not affected in the past. However, this year, the price of several items saw an arbitrary rise, including rice. As per a TBP report, the highest authority in the country has directed an immediate probe into the matter and has also urged taking stringent action against hoarding.
There have also been raids in recent times against hoarding, a move that has to be carried out weekly. The retail price of rice has seen a rise by Tk. 2-3, and while this may appear trivial at the moment, left unchecked, the rates may go even higher.
For the affluent classes in Bangladesh, the sudden soaring of prices may not create any headache. Still, for the lower-middle-income segment, for whom income is limited, any extra expenditure comes as a curse.
The increase per se is small, although the cumulative impact on the overall market is staggering. A few weeks ago, just before Eid, an edible oil shortage was created in the market that resulted in the price seeing an unprecedented rise of more than Tk. 50. A litre of oil, which sold for Tk. 110, went up to Tk. 190-200 in a matter of weeks.
Unfortunately, this abnormal increase triggered hoarding among unscrupulous traders who saw this as a chance to make a quick buck. The war in Europe was used as the pretext.
The European conflagration has wreaked havoc on the global supply chain, and since Bangladesh is an import-dependent economy, traders used the war as an excuse to raise the price.
To move away from pure market economics to social ethics, it’s disquieting that a predatory nature prevails, driving traders to push aside the distress of the masses to prioritise profit. Racketeering is an ugly abscess requiring immediate action.
In this regard, the ward administrations have a role to play. Suppose ward commissioners with the support of the local police station plus consumer rights officials carry out weekly monitoring of the kitchen markets within their jurisdiction. In that case, consumers will feel their rights are being protected. Often buyers are at the mercy of the sellers and cannot question sudden price hikes, lest they are mistreated.
A noted international media channel carried out a nationwide survey a few weeks ago where buyers from across the country expressed their displeasure at the market prices of commodities. With the rise in the price of certain items, other utility services like transport costs, medical expenses, rent, and food items also see a sharp rise.
Many city commuters have complained about a Tk. 50 increase in CNG fares while CNG drivers rationalise their extra demand on the rise of the daily amount, which they have to submit to the vehicle owner.
We see a vicious cycle in which market trends influence rising costs in various other sectors.
In a market economy, the price will never remain static; however, if an economic operation is devoid of values, the masses suffer.
The government has repeatedly announced that Bangladesh has become self-sufficient in rice production. Still, the fixed income people are forced to pay an additional price for the staple food when there should be no crisis of the staple. The country can face food crises in the pre-harvest season, not in the post-harvest period.
So far, the government’s moves have been praiseworthy, although regular market assessment is essential. The authority has to dispel any false rhetoric used by sellers involving the war as a ground for price hikes.
