Post-Ramadan prices of essential commodities
Wednesday, 29 September 2010
Syed Jamaluddin
Normally prices of essential commodities reach the peak during the month of fasting. We noticed the prices rising in the holy month of Ramadan. But this time there was another round of price-hike after the Ramadan which is very unusual. Prices of rice, atta and edible oil have continued to rise. Price of sugar has also risen, in tandem with the prices of other essentials.
Almost all essential food items including rice, flour, edible oil and eggs have become costlier making the consumers pay more to buy them even after Eid ul Fitr. The global food markets are witnessing volatility and the domestic food situation is also showing signs of instability due to depletion of food stocks and risng prices. Although there are committees for monitoring in different places, their activities are non-existent. Wholesellers and retailers blame each other for price rise. Profiteers are raising prices through different strategies. Consumers are feeling helpless because there seems to be no mechanism to take care of the situation.
Media representatives have surveyed the market last Friday and have come up with figures which are quoted here. Coarse rice is now selling at Tk 32/34 per kilo.Soyabean(unpacked) was selling at Taka76/82 before Eid but it is now selling at Taka 83/85.Flour was selling at Taka 34 before Eid which is now selling at Taka36/37.Onion price is now Taka28/30 per kilo as against Taka 34 prior to the Eid festival. Sugar price is now Tk54/56 per kilo compared to Tk 52 before Eid.Broiler chicken was selling at Tk 160 per kilo previously but its price is now Tk 175 per kilo. Prices have risen in Chittagong and Rajshahi in a similar fashion. Vegetable prices are also going up. Low and middle income people have found themselves in difficulty.
The anthrax fear also raised the prices of poultry birds and mutton. Local lentil was selling atTk 105 per kilo. Both the local and imported garlic prices were up and ranged between Tk 155 and Tk 180 per kilo up byTk10/15 per kilo last week. Prices of fish maintained the high trend. A pair of medium–sized hilsa fish was selling at Tk1000 Tk1200.
Some political leaders are saying that prices are rising without any valid reason and syndicates are manipulating prices. They called for taking action agasinst the syndicates and to bring down the prices
Prices of essential commodities have marked further rise in Chittagong. The same situation prevailed in Rajshahi and Jessore. Rice-price became unstable in Dinajpur. Mill-owners were reportedly hoarding rice and releasing item slowly. Rice price was going up because arrival of paddy in the market was not satisfactory. Paddy price registered rise after Eid .
Sugar prices have a different story. During the last two weeks, the price of sugar has increased seven times. Mill-gate price of sugar was Tk43 per kilo before Ramadan. Currently, it is selling at Tk 54/56.Sugar is not supplied against delivery orders(DO).Delivery orders are tied up in the commercial banks against loans given to those who hold delivery orders. These documents are released as and when loans are repaid. Thereafter, sugar will flow to the market. It does change several hands. DO holders and dealers together are making the sugar market unstable.
The government waived the duty on sugar but even then it could not tame the market. But legal action has not been taken against the DO holders. Production is now only60,000tons whereas it was 1,50,000 tons a few years back. Therefore, the government. has to fill the gap by imports. It is said that government intervention will bring normalcy in the sugar market soon. Twenty five thousand tons of sugar are expected to arrive in the country next month. It is reported that sugar market is controlled by four or five refiners and a couple of importers.
News from Khatunganj in Chittagong and Karwan Bazar in Dhaka about prices of essential commodities are causing concern. Prices of many items like rice,dal,sugar,onion,garlic,vegetables,fish and poultry have gone up. Consumers were worried in the month of Ramadan about the prices of many commodities. But soon after Ramadan, the fresh rise in prices have upset the consumers. There is no plausible explanation for prices to rise in most cases.
Excess profit-making appears to be responsible for the price hike. There is a suggestion that government may enter into dialogue with the business community. But if past experience is any guide, discussion with the business people never produced any positive result. Meetings in the ministry of commerce and Federation of Bangladesh Chambers of Commerce of Industry (FBCCI) in the past tell us the same story.
There was active monitoring in the month of Ramadan. Vigilance teams were patrolling the kitchen markets. Some traders were fined for charging higher prices. This produced some result. But these activities disappeated after Eid. As a result, traders ,importers and syndicates are dictaing prices. The outcome is visible in the kitchen market.
We called for action earlier and again focus on the need for taking action against the culprits who are making the lives of consumers miserable. Government must not compromise with the profiteers. Public will cooperate with it in the drive against those who are responsible for the price spiral. At the same time, supply-chain is to be ensured. Increasing supply of commodities, effective monitoring and stern action against the hoarders and syndicates may stabilise the market. We have talked about syndicates many times but none could touch them. They are powerful and influential .But it is difficult to believe how they remain beyond the reach of the state machinery.
...................................................
The writer is an economist and columnist, He can be reached at e-mail : syedjamaluddin22@yahoo.com
Normally prices of essential commodities reach the peak during the month of fasting. We noticed the prices rising in the holy month of Ramadan. But this time there was another round of price-hike after the Ramadan which is very unusual. Prices of rice, atta and edible oil have continued to rise. Price of sugar has also risen, in tandem with the prices of other essentials.
Almost all essential food items including rice, flour, edible oil and eggs have become costlier making the consumers pay more to buy them even after Eid ul Fitr. The global food markets are witnessing volatility and the domestic food situation is also showing signs of instability due to depletion of food stocks and risng prices. Although there are committees for monitoring in different places, their activities are non-existent. Wholesellers and retailers blame each other for price rise. Profiteers are raising prices through different strategies. Consumers are feeling helpless because there seems to be no mechanism to take care of the situation.
Media representatives have surveyed the market last Friday and have come up with figures which are quoted here. Coarse rice is now selling at Tk 32/34 per kilo.Soyabean(unpacked) was selling at Taka76/82 before Eid but it is now selling at Taka 83/85.Flour was selling at Taka 34 before Eid which is now selling at Taka36/37.Onion price is now Taka28/30 per kilo as against Taka 34 prior to the Eid festival. Sugar price is now Tk54/56 per kilo compared to Tk 52 before Eid.Broiler chicken was selling at Tk 160 per kilo previously but its price is now Tk 175 per kilo. Prices have risen in Chittagong and Rajshahi in a similar fashion. Vegetable prices are also going up. Low and middle income people have found themselves in difficulty.
The anthrax fear also raised the prices of poultry birds and mutton. Local lentil was selling atTk 105 per kilo. Both the local and imported garlic prices were up and ranged between Tk 155 and Tk 180 per kilo up byTk10/15 per kilo last week. Prices of fish maintained the high trend. A pair of medium–sized hilsa fish was selling at Tk1000 Tk1200.
Some political leaders are saying that prices are rising without any valid reason and syndicates are manipulating prices. They called for taking action agasinst the syndicates and to bring down the prices
Prices of essential commodities have marked further rise in Chittagong. The same situation prevailed in Rajshahi and Jessore. Rice-price became unstable in Dinajpur. Mill-owners were reportedly hoarding rice and releasing item slowly. Rice price was going up because arrival of paddy in the market was not satisfactory. Paddy price registered rise after Eid .
Sugar prices have a different story. During the last two weeks, the price of sugar has increased seven times. Mill-gate price of sugar was Tk43 per kilo before Ramadan. Currently, it is selling at Tk 54/56.Sugar is not supplied against delivery orders(DO).Delivery orders are tied up in the commercial banks against loans given to those who hold delivery orders. These documents are released as and when loans are repaid. Thereafter, sugar will flow to the market. It does change several hands. DO holders and dealers together are making the sugar market unstable.
The government waived the duty on sugar but even then it could not tame the market. But legal action has not been taken against the DO holders. Production is now only60,000tons whereas it was 1,50,000 tons a few years back. Therefore, the government. has to fill the gap by imports. It is said that government intervention will bring normalcy in the sugar market soon. Twenty five thousand tons of sugar are expected to arrive in the country next month. It is reported that sugar market is controlled by four or five refiners and a couple of importers.
News from Khatunganj in Chittagong and Karwan Bazar in Dhaka about prices of essential commodities are causing concern. Prices of many items like rice,dal,sugar,onion,garlic,vegetables,fish and poultry have gone up. Consumers were worried in the month of Ramadan about the prices of many commodities. But soon after Ramadan, the fresh rise in prices have upset the consumers. There is no plausible explanation for prices to rise in most cases.
Excess profit-making appears to be responsible for the price hike. There is a suggestion that government may enter into dialogue with the business community. But if past experience is any guide, discussion with the business people never produced any positive result. Meetings in the ministry of commerce and Federation of Bangladesh Chambers of Commerce of Industry (FBCCI) in the past tell us the same story.
There was active monitoring in the month of Ramadan. Vigilance teams were patrolling the kitchen markets. Some traders were fined for charging higher prices. This produced some result. But these activities disappeated after Eid. As a result, traders ,importers and syndicates are dictaing prices. The outcome is visible in the kitchen market.
We called for action earlier and again focus on the need for taking action against the culprits who are making the lives of consumers miserable. Government must not compromise with the profiteers. Public will cooperate with it in the drive against those who are responsible for the price spiral. At the same time, supply-chain is to be ensured. Increasing supply of commodities, effective monitoring and stern action against the hoarders and syndicates may stabilise the market. We have talked about syndicates many times but none could touch them. They are powerful and influential .But it is difficult to believe how they remain beyond the reach of the state machinery.
...................................................
The writer is an economist and columnist, He can be reached at e-mail : syedjamaluddin22@yahoo.com