Series of measures suggested to rein in prices of essentials

FE Team | Published: June 08, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Finance Adviser Mirza Azizul Islam recommended Thursday a series of measures in the proposed national budget for fiscal 2007-08 to rein in the prices of essential commodities in the local market.
While presenting the budget the adviser proposed complete withdrawal of customs duty on crude edible oil and lentils to keep their market prices tolerable.
He also proposed the continuation of duty free import of essential commodities including rice, wheat, onion, matar dal and chola dal.
He proposed the re-fixation of specific rate of duty at Tk 4000 per tonne instead of existing Tk 2250 on raw sugar import to compensate for mis-declaration and also to address the problems being faced by 500,000 sugarcane growers and local sugar industries.
He proposed the extension of bonding period up to two years to encourage exports of the export-oriented industries.
Currently, the National Task Force and the Task Forces at district and upazilla level comprising of government and non-government representatives are regularly reviewing prices of essential commodities, he said.
An inter-ministerial monitoring committee consisting of representatives from different ministries and agencies is engaged in analysing the price situation of essential commodities and making recommendations, the finance adviser said.
"We will strengthen Dal-Bhat (simple basic food) programme under implementation by BDR (Bangladesh Rifles) to mitigate the sufferings of general consumers, particularly the poor," he said.
A legal framework will soon be in place to protect the consumers' rights, he said.
He said a number of commodities will be imported by the government to increase their supply in the market. Import of rice and wheat will be doubled, he added.
"There will be additions to social safety net programmes, widening the coverage and enhancing the amount of individual grants. I have proposed a significant increase in allocation for research and other activities in agricultural sector to increase agricultural productivity," he said.
The growth rate for FY 2007-08 has been projected at 7.0 per cent, he said adding that over the past few years there has been persistent price hike of a number of essential commodities, which caused higher inflation.
In March 2007, the average inflation stood at 6.9 per cent and, on a point to point basis, at 7.4 per cent, he said.
"We are well aware of the impact of inflation that you are persistently experiencing," he said.
Since supply of most of these commodities is import-dependent and the price of such commodities soared in international market, the government could not put a rein on the price rise despite its best efforts, he said.
The finance adviser, however, said the government has been continuing its sincere endeavour to contain the trend.
He said concerns have been expressed from some quarters about the possible aggravation in price situation arising from the recent increase of diesel price by 21 per cent.
However, the weight of sectors affected by diesel including transportation, in our commodity basket is low, he said.
"It is, therefore, expected that average inflation will hover at around 7.0 per cent up to June 2007 and it will settle down at 6.5 per cent in next fiscal year," he said.