Hold the priceline now

The first burst of price-rise overshooting the affordability threshold of consumers was experienced during the Shab-e-Barat. With such a precipitous price hike in the backdrop, there can be an apprehension of record increases in living costs lying in store for the month of Ramadan leading up to Eid-ul-Fitr and to Eid-ul-Azha almost two and a half months thereafter.

The latest trend in the price upswing is a case of price jacking rather than a spurt in prices caused by a sudden rupture or dysfunction in the ways marketing forces operated thus far. The price-line held during the short-lived flash floods, mostly because flooding was confined to the country's northeast; commodity import flows have been steady, thanks to wage-earners' funding, let alone increase in the inflow of remittances. And, the communication network worked better with a somewhat lessened degree of obstructive extortionist activities due to a law enforcement intervention at the terminals. A good Rabi crop is awaited together with a predictably sizeable Aman harvest to cater for open market demands.

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There is no earthly reason for a spate in prices at this time. The demand-supply equilibrium is potentially there; the normal marketing mechanism should have worked in favour of the buyers, even though ours happens to be a sellers' market largely because of the absence of a strong consumer protection law. The consumer resistance bodies backed by an appropriate legal instrument could have wielded a powerful influence on the prices and qualities of goods and services.

Speculative trading, hoarding and black marketing have seemingly kicked off in anticipation of making windfalls with the high market demands generated during the Ramadan and related festivities.

Who is in charge? What is the role of the government or its commerce ministry? If their copy-book reaction to the situation is: well, free market operations should be allowed to determine the price levels, then we need to remind ourselves that there are mercenaries and vested interest groups out to subvert and abuse free market norms we are crying hoarse on. The government must immediately initiate a vigorous consultative process with the business community and launch a joint monitoring mechanism to curb profiteering among the dishonest traders.