Home ›› 06 Sep 2022 ›› Front
While the general people are struggling to meet the cost of living amid soaring inflation, commodities are being sold above the logical prices, set by a government agency to ensure fair prices of essentials.
The Directorate of Agricultural Marketing (DAM) every day suggests logical wholesale and retail prices of 39 commodities. However, after visiting several markets in the capital on Monday, this correspondent found that other than a handful of items like eggs, chicken and soybean oil, all other items were being sold for prices significantly higher than the prices suggested by DAM.
According to the Trading Corporation of Bangladesh data, some commodities are being sold for as much as Tk 8-12 higher than the logical prices suggested by DAM.
Consumers complain that the lack of proper monitoring in the market has caused this disparity between logical prices and actual prices. However, DAM claimed that they are conducting drives in the markets every day and even warning and fining traders who don’t follow the rules.
When asked, DAM Assistant Director (Market Connection) Md Mujibur Rahman said, “We send information about logical prices to relevant institutions, including the Directorate of National Consumer Rights Protection. Based on this information, they conduct market drives daily. Anyone who sells more than logical prices is warned or punished.”
According to DAM data, coarse rice Guti-Swarna was sold at Tk 45-45.40 per kg in the wholesale markets on Sunday. Highlighting the data of some wholesale markets including Babubazar and Karwan Bazar in the capital, the directorate says that even after keeping a profit margin of Tk 2.6-3 for the retailer, the logical price stands at Tk 48 per kg.
But in reality, coarse rice was not available at any market at this price.
After collecting information from 5/6 markets including Mohammadpur Town Hall of the capital, TCB says that coarse rice was sold at the retail level at Tk 50-55 per kg on Sunday.
As a result, consumers had to buy rice at Tk 2-5 per kg higher than the logical price.
According to DAM data, medium-quality rice was sold at Tk 50-52 per kg in the wholesale market on Sunday. The logical retail price of this quality rice should be Tk 53 to Tk 55 per kg. However, in retail, this rice is being sold at Tk 56-58 per kg, which is Tk 3 more than the logical price per kg.
Similarly, retail prices for loose flour, sugar, coarse lentil, onion, and potato were being sold unreasonably higher than the prices suggested by the DAM.
However, farm chicken and eggs were only exceptions as the retailers are selling these items for prices below the wholesale price suggested by DAM. The suggested logical price of four-piece eggs is 39-42 taka, which were being sold at 38-40 taka. Similarly, broiler chickens are being sold for Tk 5-10 per kg less than the suggested price.
When asked, a grocer named Mustafizur Rahman in Segunbagicha Bazar of the capital said, “I bought sugar for Tk 4,250 per bag (50 kg) from the wholesale market last time, meaning Tk85 taka per kg.”
“After considering transport fare, shop rent and profit margin, if I sell per kg sugar for less than Tk 90, I will face loss. I don’t know how DAM determines logical prices. We have to buy at higher prices, so we have to sell at higher prices,” the grocer added.
According to the latest report of the Bangladesh Bureau of Statistics (BBS), the overall inflation rate on a point-to-point basis in August was 7.48 per cent.
Consumers Association of Bangladesh (CAB) Vice President S M Nazer Hossain says the prices that DAM suggests are reasonable.
“However, the market is not acting normally, as traders are controlling it,” Nazer told The Business Post. There is no rule in the country on how much profit can be made out of a business, or a product. As a result, traders keep raising prices at their whims, he added.
The CAB VP urged the government to look into why traders keep selling commodities at illogically higher prices.
