The government has decided to build stocks of essentials including edible oil and sugar to keep prices stable in the holy month of Ramadan. The state-run Trading Corporation of Bangladesh (TCB) is to sell the items in three phases---15 days before the month of fasting, in the first week and in the middle of Ramadan. The TCB is to sell edible oil, sugar, lentil and chickpeas through 174 trucks for one month ahead of Ramadan. Some ten TCB retail sales centres will operate. This will enable common people to buy essentials at cheaper prices. The state organisation will sell the essentials through its 3,000 dealers.
Decisions have been taken to make sure that consumers face no artificial supply shortage and there is no unnecessary price hike in the market during Ramadan. This arrangement appears to be fine.
But at the moment, prices of all essentials are on the increase. Several syndicates are operating behind the price spiral. Although initiatives have been taken to control them, the Ministry of Commerce has finally backed down. The reason is those who are supposed to control the syndicates have good relationship with them. The government has several lists of syndicates. These lists were submitted to the Ministry of Commerce by intelligence agencies. But the government's control mechanism is now found to be ineffective. A consumer rights organisation cannot be made operational due to shortage of manpower.
The initiative to set up four wholesale markets in the capital did not materialise to hold in check the middlemen and the syndicates. Monitoring committees set up on different occasions have become almost inoperative. Syndicates are taking advantage of this situation. The distribution programme of commodities through the TCB is hampered by them. Anti-adulteration campaigns have become irregular after the last Ramadan.
Prices of vegetables are quite high compared to those of other items. Vegetables now are not available below Tk 50 per kg. Although the price of meat is stable, rice and fish prices are high. Prices of ladies finger, tomato, brinjal and potol vary between Tk50 and Tk70 per kg.
There are allegations that ruling circles have good ties with the syndicates. Therefore, the government agencies are unable to take any strong action against them. Previously, the syndicates used to control imported commodities but now-a-days locally produced items have also gone under their grip. As a result, low-priced vegetables at local level are sold in the capital at three/four times higher prices. Policymakers are embarrassed to see the enlisted persons of the syndicates. Syndicate members can never carry on their nefarious activities without any connection with the ruling party. The list of syndicate members appears to have been shelved in the ministry.
A report of the Commerce Ministry has stated that places like Jessore, Narsingdi, Savar and Chandina in Comilla where vegetables are produced in large quantities have difficulty in marketing those at Kawran Bazar. Middlemen are taking advantage of this situation. This has contributed to the high prices of vegetables. There are 15 million people in the city. There are only two wholesale markets for the entire city Kawran Bazar and Shambazar. Commodities are not supplied according to the need from these two markets. The price differential between the capital and local level is very high due to machinations of the syndicates. The middlemen are making excessive profits. A section of the people in the name of many organisations is also extracting money from commodity-laden trucks. One truck has to pay Tk1200 to Tk1500 on an average to come to Dhaka from the northern districts. This is also having an impact on the prices.
The Directorate of Consumer Rights is going without any manpower. The Public Service Commission has not yet responded to the request for appointment of 38 deputy directors. The work for setting up district level offices is proceeding slowly. Their offices are to be set up in the offices of the deputy commissioners. There will be a committee to run the affairs. Deputy commissioners will be presidents of such committees.
Previously syndicates used to operate in the month of Ramadan only but now they are active round the year. The syndicates are raising their heads because the consumer rights organisation is yet to be made operational.
Again there are moves for strengthening the TCB. It has to be strengthened financially as it has to import goods from abroad in large quantities. Currently it is borrowing money from banks to run the show. Commodity prices go up for paying bank interest. In order to make the TCB stronger, it would be necessary to increase its manpower, arrange funding and provide space for storage. The election manifesto of the Awami League mentioned about upgrading the TCB last year but such a process is yet to begin.
The TCB was created in 1972 to control prices of essentials and to ensure supply of commodities at fair prices. But it was never made an effective organisation. At one stage, there was a move to abolish it. The government's plan for controlling prices and keeping the market stable during coming Ramadan with the help of existing capacity of TCB as mentioned above may not be feasible. Perhaps we are going to have another round of price hike during next Ramadan.
The writer is an economist                and columnist                                jamaluddinsyed23@yahoo.com.au
Price stability during Ramadan
Syed Jamaluddin | Published: April 05, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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