Tackling the rise in commodity prices

TCB products were being distributed at a lower price in the evening in front of the Green Super Market in Farmgate, recently. Elias Uddin was sweating, exhausted as he had to endure the pushing and shoving among the crowd of rickshaw pullers, housemaids, day labourers, and other working-class people. He was worried that if he remained at the end of the line, he would not be able to get the goods. So the man had to stand in line despite the crowd's jostling. He was a little hesitant and fearful; what if he is spotted by anyone who knows him? So he wanted to rush away after quickly getting the TCB's products. However, a close relative also happened to be in that queue. The two were embarrassed to see each other.

Elias Uddin is a middle-class salaried person. His family consists of his wife, an elderly mother, and three children. He lives in a three-room rented house in the Rajabazar area of ​​the capital. He has become distraught with the current rise in commodity prices. He is the sole breadwinner of the family. He has occasionally borrowed money to pay for the education of his three children, his elderly mother's medicine, and the daily household expenses. Elias Uddin said: "I could get by well enough with the salary I used to get before the pandemic hit. I have been receiving half the original salary from the office since the Coronavirus pandemic started. During that time, I borrowed from time to time to manage all the expenses. The problem started from then. Even though I have been getting my previous salary for a year now, I still struggle financially. There has been a huge hike in the price of essential commodities. So I buy TCB products in the dark of night without buying things from the market. I still can't handle it properly. "

Analysis and survey conducted by the Bangladesh Institute of Development Studies (BIDS), PPRC, and South Asian Network on Economic Modeling (SANEM) have shown that the number of new poor has increased during the pandemic. SANEM said the poverty rate in the country has increased to 42 per cent from 21 per cent, but the government has rejected this claim. However, the government-run Bangladesh Bureau of Statistics (BBS) has yet to conduct any survey and analysis in this connection. In a study conducted in 2020, they said people's income had reduced by 20 per cent.

The main reason for the spike in price of all commodities in this phase is the price hike in the world market. This argument has been repeatedly raised by the government. Traders also say that shipping costs have gone up along with rising prices in the world market. Bangladesh's Gini coefficient, a measure of statistical dispersion intended to represent the income inequality or the wealth inequality within a nation or a social group, rose from 0.458 in 2010 to 0.482 in 2016. The richest 5 per cent shared nearly 30 per cent of the national income in 2016, while the poorest 5 per cent shared less than 0.3 per cent of the national income, according to the National Human Development Report 2021 released in January 2022.

Most parts of the world are going through a severe crisis due to the rising prices of food commodities, war, and poverty. Experts say that incidences of famine may increase around the world. In the meantime, the number of hungry people has increased in many countries worldwide. In many countries, food prices have skyrocketed. UN humanitarian aid workers are fearful of starvation in many parts of the world. UN Secretary-General Antonio Guterres recently said that "the greatest concern for the United Nations and humanitarian workers is the potential cost of health disasters." He added that "malnutrition, widespread hunger and famine are creating a crisis that could last for years and increase the risk of a long-term recession worldwide."

The World Food Programme estimates that approximately 4 core 90 lakh people are starving, and 81 crore 19 lakh go to bed hungry every night. Andy Bailey, governor of the Bank of England in the United Kingdom, says food prices in Britain have reached "catastrophic" levels. He added that the threat is even more significant for developing countries.

Economists and experts have been trying to make various calculations in this regard, concluding that the country's situation could worsen. Ordinary people do not understand the complexities of the economy and are intimidated by it. The rich have become careful. The government has understood the situation though, and is turning the tide. They have warned the people and started talking austerity measures. Right around this time, the rise in commodity prices has also occurred. Almost every day, the price of daily necessities, including food, goes up.

Experts have said that every nation has to solve such problems themselves. No one will come forward to help. Because this has become a serious situation worldwide. In mid-May, international risk advisory firm Verink Maplecroft reported that middle-income countries, such as Egypt and Brazil, were exceptionally weak in tackling food insecurity. The governments of many of these countries have exhausted their financial and material reserves in handling the Covid-19 pandemic. They have fallen into the trap of huge debts. The agency added that Argentina, Tunisia, Pakistan, and the Philippines are dependent on food and fuel imports. By the end of the current 2022, many middle and lower-middle-income countries, including these countries, are at high risk of civil disobedience. Although the position of Bangladesh in this study is not known in that way, research on what could happen in Bangladesh could be carried out separately. For now, we can verify the situation locally through experts and take the initiative to take action in advance.

At the moment, the ray of hope is that Bangladesh is an agricultural country. All kinds of food grains are cultivated in the country. The agricultural sector in the country may help us from sinking into a large-scale economic depression. All concerned, including the government, need to be vigilant so that any kind of crops, fruits, vegetables, etc. are not wasted due to supply and marketing problems. One class of traders raises prices by stocking food in case of disaster. That's not only unethical but illegal as well. Therefore, the government needs to be aware of hoarding. The government needs to monitor the situation so that traders do not increase prices indiscriminately.

The current situation could be a prolonged one. So every citizen needs to be careful, save for the future, and be frugal. However, our society has changed rapidly, and our traditional values are eroding. We have to think about restoring old values and building a society based on equality. One of the values ​​that have existed in our society since time immemorial is to teach others how to stand up and help others. In this context, such values ​​need to be taken seriously and used.

The government may urge companies to be more socially responsible, and they may need to take the initiative. In addition, civil society needs to call on the government to keep prices as low as possible. In general, all concerned, including the government, need to pay attention to ensure that everything is kept within an affordable price for all classes of people. In addition, the government needs to make special plans and initiatives to deal with this adverse situation. It should be ensured that the poor and t the middle class do not fall into financial crisis.

The writer is a freelance columnist. She can be contacted at [email protected]