According to the Department of Agriculture and Marketing (DAM), the production cost of one kg fine rice in the country is Tk 44.33.
Adding all expenses including farmer’s profit, suppliers’ cost and transportation, the rational price of fine rice at the retail level should be no more than Tk 54.58 per kg. But in reality, no such rice is available in the market below the rate of Tk 65 per kg.
According to DAM, a consumer is spending up to Tk 80 to buy a kg of fine rice at retail. Almost all the buyers across the country, including in the capital, have to buy any type of rice for Tk 4 – Tk 10 more per kg than the rational price.
Along with rice – excluding one or two products in the country – fish, meat, vegetables, pulses, oil, sugar, ginger-garlic, onion, pepper, and almost every other product is sold in the market at unreasonable prices compared to the rates the farmers get.
Not only that, even if there is a slight increase in demand during any festival or crisis, the already inflated prices then increase several times overnight. The Rationale of reasonable market price for consumers is not ensured even after 50 years of Bangladesh’s independence.
Amid this backdrop, Bangladesh is observing the World Consumer Rights Day as elsewhere across the globe on Friday. It should be noted that there are at least three laws and government agencies in Bangladesh responsible for tackling manipulation of product prices.
The Control of Essential Commodities Act 1956, Protection of Consumer Rights Act 2009, and Agricultural Marketing Act 2018 have been enacted to prevent abnormal price hikes and punish offenders in this regard.
The Directorate of Food, Directorate of National Consumer Rights Protection and Directorate of Agricultural Marketing (DAM) are responsible for implementing these laws.
However, the government has taken different steps, including raids and mobile courts in the market, selling products at subsidised prices through TCB and the food Ministry and department of livestock, and fixing the prices of various products from time to time.
Despite all these measures, the consumer is not safe from the price robbery of dishonest traders and the manipulation of syndicates in the market.
On the issue, Commerce Ministry Senior Secretary Tapan Kanti Ghosh said, “The Directorate of National Consumer Rights Protection (DNCRP) and Bangladesh Competition Commission are working to create fair competition in the market for the benefit of consumers.
“These agencies are working to keep the product supply chain normal, and ensure quality products at reasonable prices. We are also working to reform the Consumer Rights Protection Act, 2009.”
Former secretary of the Food Ministry Mosammat Nazmanara Khanum said, “It is like a game of cat and mouse. Raids are conducted when the prices of daily necessities increase during various festivals. It brings temporary relief, but the problem persists.”
The DAM prepares a daily price report of 37-40 types of essential commodities, including rice, pulses, onions, beef, meat, farm chicken, eggs, milk, and different types of vegetables, compared to the cost of production.
Apart from this, it also contains information on the prices set by the government and sales in the retail market.
Analysing the report of the last one week, no product is being sold at a reasonable or rational price except for soybean oil. Rather, some products have to be bought at an additional price of Tk 100 per kg compared to the reasonable price.
A consumer has to buy the products which are increasing the least compared to the reasonable price in the market at an additional price of Tk 4 – Tk 5 per kg.
According to the government, the production cost of one kg of beef in the country is Tk 678, and the data of Bangladesh Dairy Farmers Association show even if beef is sold at the retail level at Tk 650 per kg, a trader would make a tidy profit.
But till November last year, the consumers had to buy beef at an additional expense of Tk 150 per kg compared to the reasonable price of Tk 800 per kg. When the buyers lost their ability to buy beef, it was sold at Tk 650 for a few days, but it increased again to Tk 750 – Tk 780 per kg.
Although the government fixed the price of sugar at Tk 130, sugar was not available in the market at this price, the traders increased the price by Tk 10 and set it at Tk 140 per kg. But traders are not getting sugar even at this price, it is being sold at Tk 145 – Tk 150 per kg.
Market data show most of this additional price increase is in the hands of middlemen or suppliers and retailers.
On the issue, Consumers Association of Bangladesh (CAB) President Golam Rahman said, “Our problem is that the supply of products is not normal, as a result the competitive environment is destroyed.
“In addition, unethical practices in the supply chain are common. This unethical work is done in various ways, some are done by traders and some are done in various ways including extortion on the streets.”
He added, “The government has to take three steps, the first is to keep the supply normal, the second is to create an environment of competition in the market. Otherwise the market will be manipulated.
“Due to low demand, the price will increase several times. At the same time, the government should monitor the market to help curb unethical practices.”
Sudden price hikes making consumers panic
On August 20 last year, India announced a 40 per cent tariff on onion exports. The day after that announcement, onion prices in Bangladesh increased by Tk 5 – Tk 10 per kg, although onion imports with additional duty had not started at that time.
Buyers point out that the sudden increase in price during any crisis or festival has now become a panic for the consumer. Many people think this is happening due to a lack of proper monitoring by the government.
Before the start of the Russia-Ukraine war in February 2022, a 2 kg packet of flour was available at Tk 90 in the local market.
Within a few weeks of the war, the prices rose to Tk 120. Although the price of wheat has fallen below the international benchmark before the Russia-Ukraine war, the price of flour has not fallen at the same rate.
