Editorial
Prices sky-rocketing
The government must address it on emergency basis
IT will not be an overstatement to say that the unchecked rise of prices of daily necessities has gone beyond the tolerance level of everyone, not to speak of the poor and the middle class consumers. The reasons remain inexplicable since no theory can satisfactorily explain the quantum leap in prices of essentials that is occurring on a daily basis. It proves right the thesis, which many economists put forward, that economic phenomenon taking place in Bangladesh can seldom be explained by economic theories.
It seems a weird interplay of market forces, unique perhaps to our country only, that price rise suffer from ratchet effect, having gone up once it never comes down, even when there is abundant supply.
Regrettably, it appears that the government is resigned to accept the current condition as a fait accompli, unable, if not unwilling, to do anything to stem the galloping price. It was an oddity, and one that put the administration in a poor light, that the edible oil-traders and the government, having mutually agreed to put a cap on price on soybean for a month, failed to ensure that even for a day.
It causes us concern to see that all the intervention mechanisms at the disposal of the government have proved inefficacious. The only conclusion that one can draw is that the market operations are being tampered with, and that sinister syndicate activities are distorting the forces of demand and supply.
It is difficult to accept the argument in toto that the rise of prices in the international market is causing the spiral in our domestic market. Our apprehension of market manipulations by vested groups working in unison is validated by the fact that the rise of prices of imported commodities at home have not been correspondingly proportional to the rise in prices in the international market; the people are having to pay 30-50 percent more in respect of certain commodities within a week's span. And how does one explain the hike in prices of some locally produced goods?
If there is anything that the government must take up on an emergency basis it is the price spiral. It must be remembered that prices cannot be controlled by government fiats alone or eloquent articulation of economic theories. We suggest that a high-powered team, that should include representatives of the business community, be set up to determine how the phenomenon can be addressed and formulate concrete and effective measures to do so. There is also the need for an earnest dialogue with the business community to secure their cooperation which appears somewhat wanting.
For all latest news, follow The Daily Star's Google News channel.
Comments