Editorial
Market behaviour needs self-correction
Rhetoric and assurances cannot bring down prices
DESPITE the government's taking to the field early in the day and holding series of meetings with business community leaders and the latter's assurances galore, the prices of essentials instead of stabilising keep soaring, much to the consumers' chagrin. As a result, these sounded like a public relations exercise, for even though the intent might have been positive, it is the growing lack of coordination between the market players that keep hindering price stabilisation efforts .
The only redeeming part appears to be that the trading of blames between the wholesalers and retailers that had marked the previous episodes of price increases has not yet started but it may not be long in coming if the errant market behaviour is not rolled back soon enough.
Barring cereals, the prices of all commodities -- sugar, groceries, onion, garlic, potato, edible oil and lentil -- have been on the rise. This is despite a plethora of monitoring initiatives launched by the government. In addition to the monitoring efforts of the DCC and a special cell of the ministry of commerce, eight monitoring teams of TCB and the department of agriculture extension have been keeping in eye on the major kitchen markets of the metropolis. Mobile courts of the food ministry have also started their monitoring operations. Despite all this oversight, one very essential requirement for an effective price watch, namely displaying price lists at the retail level is being reneged on by the shopkeepers. And wherever these lists are found these usually show the items but hardly the rates.
Frankly, the TCB's role as a market player and price stabiliser seems rather limited at this stage. It cannot play to its full potential, given its present organisational setup, limited procurements and the distribution capacity. It so happens that the TCB on which the consumers pinned their hopes for wielding a moderating influence on the market is making a delayed entry into the Ramadan market. More to the point whereas the monthly requirement of edible oil during Ramadan is 1,50,000 tonne, the TCB is importing 25,000 tonne. Thus, the open market operators continue to be the major players.
Even with a sizeable government sector import unless the distribution network is strengthened, the consumers may continue to be ill served in terms of prices and availabilities.
Given the high profit motive-driven market, ad hoc measures are nothing but tokenism. What we need is an effective consumer rights protection law that is also enforced and creation of objective conditions for competition in the market through a suitable policy instrument. It is time we have a price commission. Through such radical measures, the markets will come to acquire self-correcting mechanisms that are completely lacked now.
For all latest news, follow The Daily Star's Google News channel.
Comments