Essentials prices to be fixed after discussion with agri ministry

The prices of essential commodities such as rice, flour, pulses and eggs will be fixed after discussion with the Agriculture Ministry since only it has the authority to do that, says Commerce Minister Tipu Munshi.

“The Commerce Ministry can only fix the prices of edible oil and sugar,” the minister said while addressing an event organised by the Overseas Correspondents Association Bangladesh (OCAB) at the National Press Club in Dhaka on Saturday.

His remarks came since the Commerce Ministry on August 31 had announced, following abnormal hikes in commodity prices, that it would help fix the prices of rice, flour, pulses, edible oil, sugar, eggs, rods and cement within 15 days.

Tipu said the Agriculture Ministry opposed the idea since fixing the prices of rice, flour, pulses and eggs falls under its jurisdiction in line with a circular issued in 2018. “So the prices of these products will be fixed after a discussion with the Agriculture Ministry.”

Responding to a question, he said the matter of importing eggs from India will depend on future situations. “If the market remains abnormal, we may have to go for import.

“But along with the consumers, we also have to think about the producers because the matter is related to employment and bank loans as well,” he stressed.

Various issues such as the volatility in the dollar market, bilateral trade with India and China, unrest in Myanmar, and the challenges after LDC graduation were also discussed at Saturday’s event.

The country is set to graduate to the developing country grouping from the Least Developed Country (LDC) category, said the commerce minister. “After that, Bangladesh will enjoy duty-free trade facilities for another three years.

“From 2029, we’ll have to compete with the developed countries in the global market. However, Bangladesh has already started preparing to meet this challenge in export trade,” he added.

Tipu said about $60 billion worth of products were exported last year. The country is now working with the target to export $80 billion worth of products in 2024 and $100 billion in 2026.

To that end, he said, a preferential trade agreement (PTA) has been signed with Bhutan and negotiations are underway to enter into some trade agreements, including PTAs and free trade agreements, with several other countries.

“Our trade gap with China and India is the highest because we have to import industrial machinery and raw materials. To reduce the trade gap, China has given duty-free facilities to export 99 per cent of goods. Bangladesh is working towards a CEPA [Comprehensive Economic Partnership Agreement] with India,” he said.

“There is no alternative to increasing exports to keep the country’s economic base strong,” added the minister.