The Bangladesh Competition Commission (BCC) has finally shown its teeth. After a yearlong 'meticulous' investigation, it has slapped a substantial amount of fines on two poultry farms, namely, Kazi Farms and Saguna Foods for their alleged price manipulation.
Kazi Farms will have to pay a fine of Tk 50 million and Saguna Tk 34.4 million. The fine amounts are possibly the largest ever imposed on entities involved in the production and marketing of food items.
The BCC ruling came after it investigated an unusual surge in the prices of eggs and chicken in August last year. The price of a dozen of eggs skyrocketed to Tk180 and per kilogram of chicken to Tk300 within a very short time for no tangible reasons.
The BCC actions came when the market, at the moment, is witnessing an identical situation. A dozen of eggs now cost between Tk150 and Tk160 at the retail level.
To cool down the egg market, the government some weeks back allowed the private import of 150 million eggs by 15 companies, which is enough for four to five days of egg consumption in the country. However, not a single imported egg has reached the country so far. Meanwhile, the government has decided to allow five more companies to import 50 million eggs. The news of egg import has failed to leave any impact on the price situation of the item in the local market, as its prices continue to be stubbornly high. At least, on one occasion last year, the commerce minister's threat to allow egg import proved effective, to some extent. The egg prices came down albeit marginally.
This year, the market is ignoring the government directive to sell eggs at Tk 12 apiece at the retail level. The decision to import eggs at lower prices and the slapping of huge fines on errant large poultry farms have created no impact on the market. Such a situation, however, is noted with many other essential items. Most goods, produced locally or brought in from other countries, are being sold at high prices. No measure seems effective in reining in the market uptrend.
There is no problem with the supply of items, essential or otherwise, in the market. Fish, vegetables, fruits, medicines, toiletries etc., are now unusually costlier than before. The surge in the prices of imported items is more than locally produced ones for understandable reasons. The greenback is now scarce and its one unit is costlier by Tk30 (the kerb market price).
The increase in prices of consumer items, however, is not commensurate with the depreciation in the value of the local currency. The hike is unusually high. Thus, it has become difficult for the people in the administration to cite the currency depreciation and other external factors as reasons for the ongoing price situation. Undeniably, external causes do have a role in the price escalation. But the prices of most commodities in the global market have returned to the pre-Covid days. The dollar crunch and depreciation of Taka are hurting domestic production and contributing to the rise in prices. But that does not support the level of rises in prices of most commodities. Even policymakers do admit the administrative failures in containing the abnormal rise in prices of some essential items. They seem to be helpless and lost control of the situation. The inability to convince the traders to sell essentials like eggs, onions and potatoes at the government-set prices remains a pointer to that fact. So, the rot has gone too deep to find a cure. Consumers may have to wait for post-general election days to get a respite. Still, there is no guarantee.
Zahidmar10@gmail.com
