Editorial
Essential prices spiraling beyond control
The government must act decisively
THERE appears to be no let up in the rise of prices of vegetables and daily consumer items. We saw a comedy being played out in the month of Ramadan when the FBBCCI and the ministry of commerce through the so-called joint efforts of market surveillance were successful in doing nothing at all to check price hike. If anything, the empty rhetoric emanating from some government high-ups only helped to raise price level even further. And strangely, it is only in Bangladesh that price rise of essential commodities have a ratchet effect, once it goes up it never comes down. Statistics will bear out the assertion.
It appears too that well recognized economic laws do not apply in the case of Bangladesh. Were it the case than how does one account for a bumper crop and yet a rise in price of rice, although in percentage terms the increase of price of rice/paddy was the lowest. How does one explain the marked difference in the price of sugar between the mill gate and the retail shops, and that too when the retail price was fixed by the government? How does one explain the quantum price difference of common Ramadan items like lentils and all varieties of pulses and vegetables from what it was the day before the start of the month and the very first day of Ramadan?
We ask why the market forces are not being able to operate in Bangladesh. Even the government intervention, half-hearted, ill-planned and untimely though it was, couldn't stem the price escalation of essential commodities. Much as the business chambers would like to discount the accusation of hoarding and syndication, the fact is that we are in the grip of a very vicious group of manipulators whose sole aim is to make profit beyond the reasonable margin. The case of sugar price manipulation during the month of Ramadan through hoarding, which reportedly brought a windfall profit for some, should put to rest all the arguments against syndication.
It is time for the relevant ministries to act. The unholy nexus between the dealers at the wholesale level must be broken. The government cannot remain a hapless spectator when the market mechanisms are ruthlessly trampled by immoral, dishonest and depraved businessmen who exploit occasions like Ramadan and Puja festivals to pocket huge profit at the expense of the poor consumers. These traders must be made examples of.
We believe that market mechanisms must be allowed to operate freely. And should it be distorted, the government must act decisively and timely to offset it. It is time too to set up a monopolies and restrictive trade practice commission, with the task to act as a watchdog over monopolistic, unfair and restrictive trade practices and the power to take legal action against such practices, in the interest of the consumers.
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