FBCCI for punishment of market manipulators

The Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) has urged the government to track down a section of traders – involved in triggering instability in the egg and poultry market – and punish them for the malpractice.

FBCCI leaders added that the production cost of an egg rose by Tk 0.30 –TK 0.40 due to the hike in diesel price, but a certain quarter of businessmen raised the price of each egg by Tk 2.70, which is unreasonable.

Virtually addressing a views exchange with stakeholders on topics of essential goods market and prices at the FBCCI auditorium in Dhaka, the organisation’s President Md Jashim Uddin said, “The poultry industry is contributing a lot to our country’s economy.

“However, the whole industry is facing criticism due to a section of dishonest businesspersons. We want the government to track these culprits down, and bring them to book.”

He continued, “Many such businesses claim they are counting losses. If you [businesses] are really counting losses, then why do prices of essentials drop when authorities conduct drives?  Why do you sell an egg at Tk 15 – Tk 16, when the actual price is Tk 6 – Tk 7?

“The market manipulation racket should be broken down. I am urging all businesses to make reasonable profit, and avoid ripping off the public by creating a crisis in the market.”

FBCCI Senior Vice President Mostafa Aad Babu said, “I am urging the government to set a designated ministry to monitor the market of essential commodities, and an authority to set product prices.

“Tejgaon Egg Traders Multipurpose Association fixes egg prices, but the organisation is not a member of the FBCCI. How are they fixing egg prices? There are 4.5 crore businesses in Bangladesh. We must do business honestly.”

Director General of the Directorate of National Consumer Rights Protection (DNCRP) AHM Shafiquzzaman said, “After conducting drives, the prices of egg and poultry came down significantly, so it is clear that there has been market manipulation.

“We will file cases against the manipulators.”

He added, “The fare of a truck – loaded with 51,800 eggs – rose by Tk 2,000 from Bhaluka to Mymensingh to Dhaka due to the increased diesel prices. In this context, per egg price may go up by Tk 0.40, but the businesses increased the rate by Tk 2.70.

“The poultry feed prices did not increase in that time, but the traders raised poultry prices as well. The egg prices later dropped by Tk 30 – Tk 35 per dozen (12 pieces) in three days after drives. These dishonest businessmen must be tracked down.” Kazi Farms Group (KFG), Dragon Agro, Diamond Egg Ltd, People’s Poultry & Hatchery Ltd are major players in the industry.

KFG Director Kazi Zahin Hasan said, “There is no syndicate in this industry as the eggs are sold in the open market.  We sell around 5-6 lakh eggs daily. The prices [of eggs and poultry] increased due to the diesel price hike, and supply disruption.

“Besides, the prices of maize and soybean increased so egg prices went up. The production cost of each egg is Tk 9.5, so the price should be fixed considering the production cost to save marginalised farmers.” Consumers Association of Bangladesh’s (CAB) Abdul Hannan said, “The businesses made an additional Tk 268 crore from the egg market in two weeks and Tk 225 crore from the poultry industry by triggering a crisis.

“The amount went to the pockets of farms and traders at the retail level.”