Price hike of commodities choking the masses

The Ukraine War at the heels of post pandemic recovery is a curse for the globe since the double whammy has severely impeded economic recovery. The conflict in Europe has sharply divided the major powers of the world with the embargoes and other restrictive measures adversely impacting fuel prices.

To what extent a sudden rise in fuel price can hamper developed plus developing economies can be seen with high inflation recorded in several nations in Europe.

Bangladesh is not immune from the consequences of the war either as spike in the price of fuel is manifesting itself in abrupt rise of the prices of essentials.

Understandably, with fuel price rise, transport of goods become costlier, leading to soaring costs incurred by the middle and the lower middle class segments.

Those with limited incomes are facing the heat because their monthly wages have not seen any significant elevation.

The income remains the same while the expenditure is skyrocketing. As per a TBP report, the prices of rice, flour, Atta, edible oil, sugar, fish, chicken, eggs, milk, onion, garlic, chilli, ginger and cumin have increased in the last week.

According to the Trading Corporation of Bangladesh (TCB), prices of almost all commodities have increased in the last ten days except for three essential commodities – pulses, salt, and turmeric.

The price of coarse rice, the main commodity in the market, has increased by 8 per cent. As per information, one kg of coarse rice costs 52-54 taka. The price of medium-sized rice has increased by Tk 2-5 per kg to Tk 53-58 and thin rice has reached Tk 64-80. The average growth rate of the price is 5 per cent.

Along with rice, the price of flour and Atta has also increased. The price of loose Atta rose by 20.69 per cent.

For people belonging to the low income segment, eggs provide the essential protein although in the last week, the price has seen a Tk. 10-12 increase; This growth rate is 28 per cent during the week since the price of eggs is now Tk. 50-55 which was Tk. 40-42 earlier.

Analysing the current condition of the world, taking into account the dismal predictions of a looming recession in the developed nations plus with the war in Europe that shows all signs of a long drawn out affair, any optimistic outlook would appear foolhardy and Panglossian.

The prudent thing for any country, especially developing ones, would be to brace austerity. However, for the lower income people, the government must launch special rates covering essentials like rice, lentils, onions and chicken.

The country is already in an energy saving mode with all commercial establishments closing by 8 pm but while this step conserves power, it hampers normal business operations. Shops, businesses will see falling profit, which will then lead to job cuts or payment of partial wages.

It won’t be an exaggeration to state that the world is slowly but inexorably entering a period of crisis.

At this moment, the government’s initiatives need to be bolstered by efforts from the affluent sections of society. The PM has already made a call for the wealthy to stand by the less fortunate and the onus now lies on the privileged.

The government can urge the rich to extend help to others but cannot force them to do so. What is required at this time of national urgency is a combined sense of duty/empathy from all classes.

A little less ostentation and some thoughtful action can go a long way in mitigating the miseries of those who are grappling with price hikes.

Also, the international development agencies should include essential item disbursement at a nominal rate in large shanty towns, slums and char areas.