Price gap and market manipulation

When a kilogram of BR-29 rice sells at Tk 30 in a village market as against Tk 46-48 in the city market, anyone can see that the theory of free market economy works here only by default. Neither the grower nor the urban consumer gets what they rightfully deserve. Middlemen and market manipulators take the lion's share of profit. When a farmer sells paddy at Tk 700 a maund (40 kilograms), his profit is only marginal but up the marketing chain, the price continues to go up until it reaches the urban consumer. In any country respecting laws of the market, a two-taka difference in the price of a kilogram of rice between a village market and a city market would have been reasonable. Even a five-taka difference would be considered tolerable. But the wide price difference here is simply outlandish. One of the genuine reasons for the price gap is obviously high transportation cost. Notwithstanding the cheaper modes of transportation of goods on waterways, there is no guarantee it will have influences on the price tags of commodities; in fact the opposite happens. When price of fuel oil goes up, bus fare is raised. But what is the rationale behind raising the fare of CNG-run buses? But it has happened in the past and will continue to happen in the future. Truck-loads of goods landing at city markets definitely become doubly costlier because of a host of reasons including illegal tolls paid at several points. Produces in particular therefore follow a price line four times higher in city markets, if not more, than the one at the growers' level. It is incredulous that a country with a population of about 150 million has to largely depend on trucks for transportation of goods in the same way buses share the major loads of passenger service. This cannot be allowed to on indefinitely. What we need to overcome this problem is an effective railway service for carrying both passengers and goods. Mass transportation is the only answer. Expansion of railway network can bring about a desirable transformation in our life and economy. Long queues of goods-laden trucks and passenger buses on both sides of the river Jamuna and Padma or the Kanchpur Bridge account for millions of man-hour losses. This problem can be solved with ease if every passenger train has at least a van attached to it for carrying goods. Then, of course, goods trains can specially be used for the purpose. This will not only drastically reduce the price gap but also ensure fair price for the growers. But first of all, railway needs to be revamped in the interest of speeding up movement of goods and passengers. From the point of environmental pollution too, railways enjoy an edge over buses and trucks. The other advantage of it is the elimination of tolls at several points on the way. Thus the country's economy can really be streamlined with consumer goods maintaining a steady price line and both growers and fixed income earners leading a more or less stable life. In that case, the theory of demand and supply will be at work depending on production of foods and other items. So far as food production is concerned, it has nearly attained a position where it can feed its people without a large-scale import of cereals, thanks to the Bangladesh Rice Research Institute which has successfully developed and introduced high-yielding varieties of rice. Arguably, no other sector has matched the success of our agricultural scientists. Even in diversification of crops, a silent revolution is taking place all across the country. All the good work, however, is being abused by a section of greedy people who maximise their income by means fair or foul. No wonder therefore, yawning social inequality is taking away the gains. The policy of expanding road communication is proving suicidal but still no one seems to be aware of the danger. We have fallen victim to a series of financial turmoil. In the latest one, now in progress, people of different segments find themselves at the receiving end for various reasons. But those mentioned here can be brought under control if the policy-makers are serious about it.