Fighting price hike

The cost of everyday goods in the country is rising at an alarming rate. Despite recent government initiatives to cool off the prices of essentials in the kitchen markets, the people of Bangladesh are still grappling with the grim reality of price hike. The ministry of commerce has set maximum retail prices (MRPs) for items like eggs, onions and potatoes for the first time against the backdrop of soaring prices of the commodities. But the traders are not complying with the government-set prices. They are selling those items at the previously hiked prices, with some shops charging even more. For instance, eggs are now selling at Tk 13.5 each. Potatoes are being sold at Tk 50 per kg and local onions at Tk 85 per kg although all of them are supposed to be sold at the prices fixed by the government.
As a result, low-income people and the middle class have been finding it harder to afford some of the most basic food items. Even though prices have been rising, peoples' incomes have not increased. There is a big difference between the average per capita income of our people and their real income. Retailers shift the blame of hiked prices on wholesalers saying they purchase goods at higher prices from the latter and so they sell at higher prices. When the supply of a product cannot match the demand, its price is supposed to increase. But in our country, there is a dishonest section of traders. They create a kind of artificial crisis of commodities and increase their prices at will.
This current challenge to face food inflation is to highlight the need for rigorous monitoring and swift action against price manipulators. The authorities concerned should take necessary measures to ensure adequate supply of goods and create a consumer-friendly market system. The unscrupulous traders involved in creating artificial crisis should be brought to justice. The law enforcement agencies should also keep a close watch on the market.

Roksana Wazed,
Student of the Department of Management,
School of Business and Economics,
North South University, Dhaka,
roksana.wazed@northsouth.edu