Ensuring price stability

Rahman Jahangir | Published: August 15, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Thanks to some prompt initiatives taken by the government, people, particularly of low and middle income groups, did not have much to complain about prices of essentials during the month of Ramadan. Essential commodities were almost within reach of one and all. There was no extensive outcry over its prices.
In fact, a number of positive steps taken by the Commerce Ministry including a ban on export of some vegetable items during the holy month had a salutary effect on prices of essentials. Adequate supply in the markets was ensured through an embargo on export of several vegetables to keep the market stable. The export ban on eggplant, garlic, cucumber, green chilli, lemon and coriander leaves was in place until July 31.
"We want to ensure that prices of essentials remain within the people's reach throughout the year," the commerce minister said after a meeting with heads of various divisions under his ministry over the reserve, supply and prices of essentials. Both the supplies and prices of all necessities including edible oil, lentil, gram and sugar were normal. The current reserves too were much higher than the demand.
The government also took faster initiatives to import onion.
India had raised the minimum export price of onions to $300 a tonne on June 19. Delhi said the move was to 'stabilise the price in internal markets.' But Bangladeshi traders said it was to discourage exports as prices of onions and potatoes had been spiralling in Indian markets since May. Added to these were open market sales operations.
Surely, prices of essential goods play a critical role in maintaining a government's popularity to a great extent in the sub-continent. Not long ago, we saw how the BJP-led alliance had to face the displeasure of the people due to abnormal rise in the price of onions. In a country like Bangladesh, with a vast majority of people below the poverty line, the prices of essentials affect the people enormously. Nothing is more important to a poor man than his stomach. The question of freethinking or democratic rights comes later. The performance of the government, it may be recollected, was highly commendable in respect to stabilising prices of essentials during its regime in 1996-2001. The same cannot be said about the performance of BNP-led alliance during 2001-06. In the later part of that regime prices of essentials rose steeply.
Bangladesh will have to strengthen state trading to save the common men from importers and middle-men, who make excessive profit. The Trading Corporation of Bangladesh was never an efficient organisation. It earned a bad name through corruption and mismanagement. However, it could, to a certain extent, act as a deterrent against importers making high profits. With the slowing of its activities there was nothing to stop the dishonest traders from making unlimited profit.
The government should hold regular talks with prominent members of the syndicates and the retailers' associations in order to maintain price stability throughout the year. More time should have been spent on appointing the dealers of TCB. It is a fact that there is an inadequate supply of materials to the dealers. There has also been too much delay in arranging imports for meeting needs at home. All these need to be done well in time as a bulwark against price manipulators.
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