Controlling price spike of essentials

The key functionaries of the government have been calling upon businesses to go by standard business ethics and refrain from any dirty operations that lead to increased prices of food grains by creating an artificial crisis in the market through hoarding. Reducing supply of edible oil and afterwards supplying the same as usual to the market, is considered by many, on some valid grounds, as a clear evidence of market manipulation by some unscrupulous businessman. In this context, the Prime Minister has herself noted recently that the market is unstable. She has also said that despite the availability of a large stock of food grains, various kinds of conspiracy, including market manipulations, are being resorted to, for creating an artificial crisis in the market for increasing the price. It is undeniable that there is a close relationship between domestic and the international markets for rising food prices. Specially, the case is here clear about the price of import-dependent soyabean oil. But it is in no sound rationale, in terms of normal operations of a market, to hike the per litre price of soyabean oil by Tk 12 in one jump. Anyway, taking all kinds of reasons including the price in the international market into consideration, the Tariff Commission which has been given the responsibility by the government to fix the price of soyabean oil, has expressed its views that the price of edible oil cannot be more than Tk 100 per litre at the mill gate. From this point of view, a maximum of Tk 4.0 can be added, along with the price of the bottle and as such, the price of per litre of soyabean oil should not reach the current level of Tk 114 or more. There is obviously some dubious trick by some unscrupulous businessmen for increasing price of edible oil arbitrarily in the market. Some greedy businessmen seem to have taken the easy way of increasing the price by creating an artificial crisis without supplying the same to the market for sales. We, as consumers, are unable to realise the logic of those businessmen about the price hike, who tend to ascribe its reason to the rising prices in the international market. It is a big puzzle for us as to why the price of rice is increasing, despite the availability of a large stock of rice with different categories of businesses. The price of even coarse variety of rice has increased by about Tk 8.0 per kg in the recent months. Besides, the prices of sugar have shot up suddenly, again. The price of rice is going beyond the purchasing capacity of the common people. The real situation is that the government has failed totally in monitoring the market and intervening in it, in appropriate ways in order to help keep the prices of essentials at a tolerable level. We have reasons to support intervention by the government in the market, particularly in our context where some businesses tend to defy all norms and standards of ethics to fleece the ordinary consumers. The government should take effective measures and must not give mere verbal assurances. The Prime Minister has stated that the conspiracy is on, by some vested interest groups, to create an artificial crisis for increasing prices, through hoarding. It is the government's prime responsibility to help stabilise the market if some dishonest businessmen try to destabilise it. As the Prime Minister has herself stated that there are market manipulations, we expect that the government will take stern actions against the dishonest and unscrupulous businesses. However, the food prices of Bangladesh, according to some responsible quarters, are still low compared to the situation in the other countries. This statement was made by none other than the commerce minister himself. But all concerned must also keep in mind that this kind of statement will only encourage some greedy businessmen who will try by every means to take the opportunity for increasing food prices further. Against this backdrop, the government should make fresh arrangements and apply new methods to handle the traders, deal with the hoarders, break the so-called business syndicates and ensure smooth supply of food items to the market. Mere words warning the hoarders of food grains, are not enough to check their greed and curb their misdeeds. Stern actions must be taken against those businessmen who are found to have engaged themselves in hoarding rice and manipulating prices. (e-mail: lutfor81@gmail.com)