Who is to blame for continued price hike?
Who is to blame for continued price hike?
Published: Sunday, 17 March, 2024 at 12:00 AM Count : 1020
The first thing Prime Minister Sheikh Hasina said during the post-election greeting was to control price hikes and increase purchasing power. She noted that rural areas and Dhaka city residents are suffering more from high food prices, and gave a promise that offered a glimmer of hope. Yet, as the holy month unfolds, that hope seems to be fading fast. Because as soon as Ramadan started the rising cost of living casts a long shadow over the holy month.
Essential goods have reached a price peak. Vegetables, the cornerstone of a healthy diet, have seen a 30-40% surge in district hubs. Unfavorable weather conditions in the latter months of 2023 led to crop losses, directly impacting availability and driving price hikes. This price hike extends to winter vegetables like brinjal, beans, tomatoes, and cucumbers, further squeezing household budgets.
Dates, a Ramadan staple, exemplify this exploitative trend. Import duties and Wholesale Market Manipulators have caused a dramatic price hike, making this fruit a luxury. Chickpeas, a crucial source of protein, have also seen a slight increase linked to the exchange rates. Chicken is now Tk 80-100 per kg more expensive compared to earlier in the year. Even basic essentials like rice, oil, sugar, and onions haven escaped the price spiral.
The Bangladesh Commerce Ministry has set a price for dates, at Tk 150 to Tk 165 per kilogram. Zahidi dates, the widely-consumed variety, will be priced at Tk 170-Tk 180 per kg. But traders in Chattogram, Bangladesh, have been accused of irregularities in importing dates, with some claiming to import expensive dates for lower prices to evade duty fees and tax. This led to an increase in the tax burden on date imports, ranging from Tk 66 to 265.
The holy month of Ramadan is a time for compassion and sacrifice, Yet, soaring prices threaten to conceal everyones peace. The mass people demand a Ramadan free from the anxiety of affording basic necessities.
The root causes of this price surge are complex. Rising global inflation plays a significant role. However, the potential for corrupt sellers to exploit higher profit marginsacts as a main barrier to this problem.
The question remains: who will bell the cat? The responsibility lies not only with the government but also with market regulators. Stricter price controls, coupled with crackdowns on profiteering, are essential.
Additionally, long-term strategies to boost the domestic production of essential goods are crucial. Investing in agriculture, improving weather forecasting capabilities, and streamlining supply chains can help mitigate future price shocks.
Syndicates in Bangladesh often operate under various appearances, makes it difficult to identify their exact structure. Some of them work in Cartel Networks, working together to artificially inflate prices by controlling supply and demand. And the "Wholesale Market Manipulators", influence prices at wholesale markets, impacting the final cost to consumers.
The activities of these syndicates affect low-income households and those celebrating Ramadan. With limited resources, these groups suffer the most from price hikes, struggling to afford basic necessities. This not only creates economic hardship but also undermines the spiritual essence of Ramadan. In order to ensure affordability and a fair market, proactive preventive measures are crucial.
Promoting Transparency and Competition: Simplifying business registration processes and supporting small and medium businesses can promote more players in the essential goods sector. Investing in agricultural infrastructure, research, and technology can enhance domestic production of essential goods.
Investing in cold storage facilities, improving transportation networks, and reducing middlemen to minimize post-harvest losses and transportation costs. Facilitating direct marketing channels between farmers and consumers and establishing farmers markets and online platforms can connect producers directly with consumers, offering both parties a fair price.
Other Long-Term Solutions: Strengthening weather forecasting and promoting drought-resistant crops helps to minimize crop failures and lessen price fluctuations caused by adverse weather conditions. And boosting local agriculture and resources to reduce dependency on global markets. Implementing targeted programs can shield low-income households from the impact of price hikes. This can include government-run stores offering essential goods at supported rates, particularly during periods of high demand like Ramadan.
Addressing price hikes requires a different approach. By combining stricter regulations, promoting competition, and implementing long-term solutions, Bangladeshi authorities can create a more stable market environment.
Additionally, by fostering ethical business practices and empowering consumers, the government can ensure a fair and affordable Ramadan for all citizens. Let us not wait until the cat becomes too strong; let us take the necessary measures to secure a stable market and a worry-free Ramadan for all.