Commodity prices

The issue of what action the government should take to regulate the price of essentials is a tricky one. The commerce minister has been quoted as saying that fluctuations in price merely reflect the law of supply and demand and that there is little the government can or should do to regulate prices.

But of course the problem in our market-places is that speculation and market manipulation continually distort the conventional operation of supply and demand. The question for the government thus becomes what steps it will take to ensure that market manipulation does not cause prices to periodically sky-rocket.

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Eid is coming with the attendant steep rise in prices expected. Prices often fluctuate in response to seasonal considerations such as Eid or to political unrest or natural calamities. It is incumbent on the government to craft a policy for dealing with such situations and ensuring that they are not exploited by profiteers at the expense of the common consumer.

The government must create a supervisory authority so that there is a way for consumers to receive redress for their grievances. The price charts are a good idea but useless without some kind of enforcement mechanism. In addition, making information on the factors that effect the price of goods available to consumers would be a great help as most market manipulation exploits gaps in information between buyers and sellers.

The government need not go so far as to impose price caps or dictate the price of goods. The measures mentioned above would go a long way towards effectively protecting consumers from market volatility and those who would exploit it for gain.