Holding price hike in check during Ramadan

There is a plenty of supply of commodities which will be of high demand during the holy month of Ramadan. Therefore, price situation should remain normal. The ministry of commerce has prepared a report showing the supply, marketing and price situation. The report was presented to the parliamentary standing committee on the ministry of commerce.
Six commodities such as edible oil, sugar, pulses, gram, dates and onions will particularly be in greater demand during Ramadan. Both public and private sectors have made preparations to avoid crisis of these items. Initiative has been taken for market monitoring and strengthening of the TCB in order to check syndication.
It was mentioned in the report of the commerce ministry that there is currently a demand for 1.5 million tons of edible oil in the country. Local supply is about 2,50,000 tons. The deficit is met by importing soyabean and palm oil. Monthly demand for edible oil is 1,10,000 tons. Additional demand is created during Ramadan and Eid ul-Azha. Since the beginning of the last year, the price of edible oil has been stable and going down in the international market. In the local market, price is within the purchasing power of the consumers. According to the National Board of Revenue (NBR), 1.91 million tons of edible oil was imported from 2014 to 2015. Up to March of the current year, 1.7 million tons have arrived in the country. Therefore, there is no supply shortage.
There is a demand for 1.4 to 1.5 million tons  of refined sugar. During the last three years, the price of unrefined sugar was going downward in the international market. This was reflected in the local market. Local sugar market is now stable. According to NBR, 1.79 million tons of sugar was imported last year. About 1.22 million tons of sugar arrived in the country up to March this year. Sugar is selling at Tk 52/55 per kg after paying duties and taxes. Sugar market and stock position are normal.
Demand for gram is around 60 thousand tons per annum out of which seven thousand tons is locally produced. The balance is imported to meet the demand. Gram is selling at Tk79/84 per kg. Supply and stock are reportedly satisfactory.
The demand for onion is 2.2 million tons. Local production is 1.70 million tons. Rest of the onion is imported from India. Therefore, the Indian market and production have a bearing on Bangladesh. Due to excessive rain in India last year, the price of onion went up there. It had its consequences in Bangladesh. During the current year (up to March 04),98,000 tons of onion has been imported. Onion is selling at Tk 20/45 per kg in the local market. Supply is quite normal. Price is within the purchasing capacity of the consumers.
Total demand for pulses is 3,75,000 tons. Last year local production was 2,60,000 tons. About 1,36,000 tons of pulses was imported up to March. The current market price is Tk 100/150 per kg. The market situation is normal according to the report.
Demand for dates is about 15 thousand tons. Bulk of this is needed for Ramadan. Up to March, more than 19 thousand tons have been imported. Because of variation in quality, price of one kg dates is Tk 80/220. Date market is normal. Prices are not expected to rise in Ramadan.
The commerce minister and the parliamentary standing committee on commerce ministry appear to be quite confident that prices of essentials would not come under unusual pressure in the month of Ramadan. It is, however, quite disconcerting that prices of some essentials have showed upward movement well before Ramadan this year.
In a free market economy, the government does not generally control or regulate prices. But it also cannot sit idle if there is a crisis
The writer is an economist and columnist.
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