In recent years, increased prices for essential commodities have gravely impaired the livelihoods of millions of people in Bangladesh. Poor people, in particular, have been writhing under the crushing weight of rising prices, and in July, the country saw 14 per cent food inflation for the first time in 13 years. Households reduce expenditure on food and non-food items and change their food consumption habits but still fail to accommodate inflationary pressures.
Several factors contribute to the price surge, including insufficient household and national incomes to purchase food, supply and demand uncertainty, natural calamities, food wastage, substandard technology, fluctuations in global oil prices, the Russian-Ukraine conflict, and the dollar crisis. However, the biggest problem lies in the country's dysfunctional legal system, which benefits opportunistic individuals. For years, the media have reported that avaricious coteries known as syndicates have hoarded or collaborated with others to raise prices by inducing artificial scarcity.
Regardless of the previous government's various initiatives, such as duty exemptions on imports of items, the syndicates maintained control of the market for essential commodities. There have been allegations that political figures were also involved in these syndicates. Despite the regime's fall, prices have continued to rise.
Thus, critical steps must be taken to ensure food security in the country. Some ways to control syndicates and food prices include properly implementing relevant laws, enhancing drives by regulatory bodies, improving agricultural R&D, and raising consumer awareness. By implementing these measures, Bangladesh can achieve food security while advancing its broader development goals.
Rumaisha Nowshin Fatema
Department of Accounting and Finance (DAF)
North South University
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