| Prices of many essential commodities increased significantly compared with the prices a year go when the government assumed office after a stunning election victory with a promise to take the heat out of the kitchen market.
The prices of everyday necessities, especially prices of items which had declined in the first few months of the past year, are seeing a fresh and sharp rise in recent months, according market observers.
'Everyone hoped that the government would take steps to contain the runaway prices… but we are now frustrated to see rising prices of essential commodities,' said Mossahraf Hossian, a tea stall owner at Nakhalpara.
Many consumers also expressed their dismay at the fresh or continuous increases of commodity prices.
The consumers' rights activists and economist suggested that the government should be more active against market manipulation and artificial fiddling into the supply chain.
The average price of per kilogram of coarse rice in July-September quarter of the current fiscal year was Tk 21, but the Trading Corporation of Bangladesh's market reports showed the price at Tk 25.5 on Thursday.
The average price of coarse rice per kilogram was recorded at Tk 28.5 in the first week of 2009. In early 2008, the price hit Tk 35 as damage of paddy by cyclone and a ban on exporting rice from India, pushed the market to become vulnerable.
Increase in the price of coarse rice also worried the parliamentary standing committee for Food Ministry which last week asked the minister to investigate the reason and keep a keen eye on the market.
At the beginning of 2009, the price of coarse flour was recorded at Tk 24-28 per kilogram, but a decline on wheat price globally pushed down price of flour in the local market.
According to Consumers' Association of Bangladesh, packed coarse flour per kilogram sold between Tk 23 and Tk 26 last week, with around 15 per cent increase in just one-and-a- half month.
The price of edible oil, that had also declined early last year following a massive fall in its prices on the international market, has also increased this few past few weeks.
The price of loose but fine grade palm oil, which is mainly consumed by poor people, was Tk 53-56 per kg in the first week of 2009. But a Trading Corporation of Bangladesh report on Thursday showed its price shot up at Tk 66-68 per kg.
The average price of red lentils increased by more than 20 per cent over the year as TCB recorded the retail price of per kg of red lentil at Tk 85-135. The price was at Tk 76-106 in the first week of 2009.
Sugar, another major essential item became costlier by 59 per cent over the year and it was being retailed at Tk 51-54 per kg on Thursday.
The sugar market became volatile in last Ramadan with its retail price having increased by more than 50 per cent within a couple of weeks.
The commerce minister at that time had told citizens that manipulation by some businessmen was the reason for such hike and promised they would be punished, but no specific action in this regard is yet to be seen.
The TCB report also shows that potato is now 74 per cent costlier than what was its retail price in the first few weeks of 2009.
Retail price of onion also became costlier by 46 per cent, that of garlic by 21 per cent and ginger 26 per cent. Live broiler chicken became costlier by 19 per cent.
Quazi Faruk, general secretary of Consumers' Association of Bangladesh, said, 'Fresh increases in prices of the major commodities will bring pressure on the limited income group people which will negate the ruling party's election pledges.'
Kazi recalled that controlling the prices of essential commodities was top number one priority in the election manifesto of the ruling Awami League.
"Control Over Commodity Price Hike" was listed as the number one of AL's top five priorities in AL's, a revisiting of the party's website, found. The AL had there specific commitment to keep the market in favour of the consumers.
"Measures will be taken to reduce the unbearable burden of price hike and keep it within the purchasing power of the people,' the manifesto stated. 'After giving the highest priority to production of domestic commodities, arrangements will be made for timely imports to ensure food security.'
It added : "A multi-pronged drive will be made to control prices along with monitoring the market. Hoarding and profiteering syndicates will be eliminated. Extortion will be stopped. An institution for commodity price control and consumer protection will be set up. Above all, price reduction and stability will be achieved by bringing equilibrium between demand and supply of commodities."
Kazi Faruk of CAB said, "Fresh increases on commodity price might have caused uneasiness to the ruling party, but effective steps to bring the market into effective disciplines, are yet to be taken.'
Mahabubur Rahman, a renowned rice economist, also agrees that fresh increases on rice price would be a matter of worry for all, including the government.
He however points out that price of rice is increasing due to a shortfall in Aman production. But he believes there may be reasons to be worried as imports of rice stopped and rice price is now high in neighbouring India.
'The government should take allout measures to support as Boro farmers who suffered a missive price fall after last harvest,' he said.
Economist Abu Ahmed said the Awami League government, in its beginning, had some unearned pleasure, 'The global prices of commodities, which had increased exorbitantly in the previous two years or so, had declined at that period.'
There are many things to be done by the government, Ahmed said.
He said, 'Market should be truly monitored with proper assessment of the local production and timely preparedness by the government and private sector importers to meet any shortages.' http://www.newagebd.com/2009/dec/30/front.html |
