Keeping prices stable during Ramadan

FE Team | Published: January 13, 2024 21:25:30

Reining in the soaring prices of most essentials is viewed as one of the key challenges for the new Awami League (AL) government. The immediate past government that too belonged to AL had failed to tame a stubborn price situation for the past one year or so. It is now incumbent upon the new government to do whatever is needed to be done to bring down the prices within the reach of the common people. Easing of the price situation has become more pressing as the holy month of Ramadan is not far away.
The current price situation is not lost upon the policymakers who are acutely aware of the sensitivities surrounding Ramadan. They have allowed for the import of key consumer items on supplier's or buyer's credit, under "90-day usance approved by the central bank for cooling the overheated market." According to a report published in this newspaper, it is understood that Bangladesh Bank (BB) has allowed such deferred payment with the specific purpose of keeping prices of essentials stable during the month of Ramadan. While this certainly is very welcome news, the question is precisely what measures authorities are going to take if or when sellers decide to flout the rules? What is amply clear from the bitter experience consumers have had to endure is that sellers at every stage of the supply chain have become a tad relaxed and comfortable with lax monitoring. The highly-publicised raids by relevant agencies are not having the desired effect in taming prices.
Technically speaking, the deferred payment on consumer goods like edible oils, chickpeas, pulses, onions, spices, sugar and dates should help traders keep the supply of some items, usually consumed in larger volume, stable over this period. But stable supply had never really stopped any trader in the past from hiking prices, especially when Ramadan came round. The unfortunate truth here is that whereas in the past traders used to make a fast buck during Ramadan, this malpractice has become a round-the-year phenomenon. What consumers will be waiting to see is whether market monitoring activities will be stepped up to check violators of the law. It is obvious that BB would like to calm an overheated market for essentials for the benefit of consumers in general, but authorities have thus far failed to demonstrate that they are willing to get harsh with the so-called business syndicates over this issue.
There was much hope that in the post-election period things would improve. They haven't. New records are constantly being made on how high and ludicrous prices can go in kitchen markets around the capital city and country. And while BB states that the facility of deferred payment will remain applicable for initiation of import till March 31 this year, one must take such statements with a pinch of salt. In the past the revenue board had slashed import duty on many products and the only benefit it brought was higher profit for importers and none for consumers. That unfortunately reflects the state of affairs in the country.
While the importers always use the excuse of poor imports to raise prices, with this facility being granted two months before the onset of Ramadan, goods can be imported in a timely fashion. But let there be no confusion about the fact that importers / traders can and always do find new excuses to further squeeze consumers on the question of prices. Until and unless official agencies responsible for monitoring the wholesale and retail markets remain on their toes, price manipulation will take place and consumers will be subject to further crucifixion on the altar of raised prices.