Tightens control too much on market syndicates may backfire: Salehuddin

Tightening control too much on market syndicates may backfire, Finance Adviser Dr Salehuddin Ahmed said today (18 December).

"There are various kinds of syndicates in the market. If the government tightens controls too much, it may backfire," he told reporters after a meeting of the Advisers Council Committee on Government Purchase (ACCGP) at the Cabinet Division.

"We want everyone to do business but not make excessive profits," he said adding, "We have to depend more on external sources to secure product supplies. "

The adviser said the government is working to keep the prices of essential commodities within tolerable levels in the market until the Holy Ramadan,

"We are trying to ensure that the prices in the market remain tolerable. But it is a tough job. The nature of business is complex, and it is difficult to untangle this complexity," he said.

He came up with the remarks in response to a question about the persistently high prices of soybean oil despite the government's decision to exempt tax and duties on its import.

He said the Purchase Committee had approved a series of proposals for importing essential commodities like soybean oil, lentils, and sugar as part of the government's efforts to keep prices within an affordable range.

"We hope that the supply of various products will arrive and the market will remain stable until Ramadan," he said.

However, he acknowledged the gap between the market situation and the expected price reductions of different products following the government's initiatives.

He also urged people to be more vigilant about market condition and file complaints against traders if they engage in excessive profiteering.

"In other countries, consumers are very vigilant. If a trader sets prices too high, they lodge complaints with the authorities. Unfortunately, in our country, consumers tend to be more tolerant," he said.