No price hike in Ramadan, reassures Adviser Bashir
The commerce adviser assured that the country’s import systems and stockpiles are adequate to meet demand during the fasting month
Summary:
- Essential commodity prices will remain stable during Ramadan
- No shortages of key food items are expected
- Government ensures sufficient imports and stockpiles
- Competition Commission to be fully independent
- Market dominated by a few groups, limiting competition
The prices of essential commodities will not increase during the upcoming month of Ramadan, set to begin in early March, Commerce Adviser Sk Bashir Uddin has reassured the public, already weighed down by stubborn inflation.
"Hopefully, there will be no shortages of items such as oil, sugar, chickpeas and dates in the market," he said during a policy conclave titled "Reasonable pricing of food items: Exploring market supervision strategies" at a hotel in Dhaka yesterday.
Keep updated, follow The Business Standard's Google news channel
The commerce adviser assured that the country's import systems and stockpiles are adequate to meet demand during the fasting month.
Referring to falling prices of various products in the international market, he said, "Prices in the local market should be reduced. I see no reason for them to rise here."
Bashir said the government aims to make the Competition Commission fully independent and ensure no anti-competitive activity, with no ministry interference.
At the event, Professor Anu Muhammad said in a free market economy, there should be competition, a high number of buyers and sellers, and open information.
"However, in reality, the market is controlled by a few groups with no competition. In this case, both the Competition Commission and the government have a responsibility," added the economist.
"We need to investigate why prices are increasing like this. The government must have a proper and comprehensive plan to address the country's problems,"
Acting commerce secretary Md Abdur Rahim Khan said, "By providing opportunities to both big businesses and small retailers, we can make market prices more bearable."
To support this, the commerce ministry will establish an Input Development Fund, offering small traders low-interest loans for importing daily necessities.
In his keynote presentation, Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, said the country's food market is under an autocracy due to inadequate regulation.
"We hope this autocracy will end," he added, speaking at the event organised by the business daily Bonik Barta.
Tariff Commission Chairman Moinul Islam Khan said, "Farmers sell vegetables at Tk4, but consumers pay Tk40. By the time the vegetables reach Karwan Bazar, the price increases to Tk10. Several middlemen in the supply chain each take at least a 20% profit, putting significant pressure on consumers."
Mohammad Alim Akhtar Khan, director general of the Directorate of National Consumer Rights Protection, said, "We observed a 60% price increase for a medicine in just one month. Enforcement drives will be ineffective if pharmaceutical companies continue ignoring ethical practices."
SM Nazir Hossain, vice president of the Consumers Association of Bangladesh (CAB), said when global prices rise, local prices follow suit within a day, citing unholy syndication as the cause. "Sometimes, we feel the real issue lies in the country's governance," he remarked.
"We observed that when rice stocks decrease in government warehouses, traders raise prices. Similarly, wheat prices remain high locally despite being lower globally," he said.
The conclave, moderated by Bonik Barta Editor Dewan Hanif Mahmud, also featured prominent attendees, including NBR Chairman Md Abdur Rahman Khan.
Kazi Zahin Hasan, director of Kazi Farms, blamed the previous government's flawed policies for the devaluation of the taka, leading to a crisis in the economy and a surge in food prices.
Sabbir Hasan Nasir, managing director of Shwapno, warned that further VAT increases would drive consumers away from supermarkets to retail markets, which do not impose VAT.
He explained that while supermarkets now face a VAT increase from 5% to 7.5%, this discourages institutional businesses.
Farid Ahmed Russell, acting president of the Karwan Bazar No 2 Raw Materials Wholesale Market Cooperative Society, emphasised the need for a policy mandating price receipts for every transaction.
"The government puts pressure on traders when prices rise, but storage owners often fail to provide proper price receipts," he said.
Mohammad Hasan, managing director of City Group, emphasised the need for infrastructural development to ensure reasonable prices for consumers.
He questioned how reasonable prices can be determined and suggested that infrastructure improvements are key to reducing business costs.
Speaking at the event, TCB Chairman Brigadier General Mohammad Faisal Azad observed a disconnect between consumers and suppliers. He noted that TCB's promotional efforts are insufficient, and the long supply chain poses operational challenges.
Umama Fatema, spokesperson for the Anti-Discrimination Student Movement, expressed concerns over rising prices of essential commodities over the past five to six months.
"We need to investigate why prices are increasing like this. The government must have a proper and comprehensive plan to address the country's problems," she said.
Sarjis Alam, chief organiser of the National Citizens' Committee, stated that controlling commodity prices requires political decisions, emphasising that price stabilisation efforts will fail without strong political commitment.
He noted that the market remained unchanged even after the fall of the Hasina government, with the same patterns persisting across sectors.
While some expectations have faded, he expressed hope in the interim government, believing its competent advisory council could meet public expectations. Alam criticised large companies for manipulating prices to maintain market dominance, turning the market into their own territories. He urged these corporations to curb their greed and contribute to reducing inflation.
Alam called for businesses to adopt philanthropic practices to secure their legacy, citing positive global examples and hoping for similar actions in Bangladesh.
