This Ramadan is also not going to be particularly kind to the devout Muslims in Bangladesh. The trend in general every year is abnormal rise in prices of every conceivable consumable during the holy month. Inflation has already been at a staggering level. There was a ray of hope among people of all income groups with a newly elected government taking over and a number of new faces in the cabinet becoming vociferous about taming food inflation, especially in the run up to the month of Ramadan.
Sadly, that hasn't happened. The development, as far as food prices are concerned is the diametrically opposite to what the public representatives pledged to do. The facts speak for themselves. As per a report published in this newspaper, the prices of every major food item and spices have shot up over the course of one year. Sugar posted an increase of about 17.85 per cent in the week before Ramadan this year compared to the corresponding period last year. Onion has been the biggest shocker for consumers posting a massive 225 per cent per kg (from Tk40 to Tk130). Dates which is a must on the iftar table incresed by about 33 per cent; lentil increased by a third. The government has lowered the price of soybean oil, but traders are still refusing to accept that price under different pretexts.
The law of demand and supply doesn't apply to any of the markets in the country. The supply chain for food is dominated and controlled by major players that include importers to miller and lower down the chain to wholesaler and retailers. Every cog in that chain is where price manipulation takes place. The authorities have ample proof of wrongdoing and yet are unwilling (or perhaps unable) to do anything about it. Apart from the usual litany of excuses about higher prices in foreign markets, the dearth of dollar, inability to open sufficient letters of credit, etc., there is something unexplainable. If the government waives or reduces import duty, why should its benefits not go to the consumers? In case of soybean oil, this has happened. Retailers blame millers for not scaling down the mill-gate price.
While the authorities and public representatives keep to their respective narratives about why prices have increased, the case of the potato and onion remains a classic case that highlights market imperfections. In full harvesting season, price of potato had shot up. With an overflowing supply of the potato, the authorities couldn't come up with any explanation that would be acceptable to people. The same is true for onion. Regardless of how policymakers view people's opinion, this is a dangerous game being played out by groups of powerful business coteries. Taking the people for a ride has its consequences. Today, there is an undercurrent of frustration and rage that people feel but do not vent out in public gatherings. While unscrupulous business entities have been reaping windfall profits, and they will do so again during this Ramadan, the government has to take the blame.
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