Dr. Muhammad Mahtab Hossain Mazed

From the tea shops to the famous newspapers and other media, the topic that has become the focus of discussion nowadays is the unbridled rise in commodity prices. The traders are putting the common people in trouble by increasing the prices of daily necessities by making syndicates on various pretexts. Once the price of a commodity increases, it does not decrease. Even though various government organizations are working in this regard, they are not playing an effective role, so the price of goods is not coming under control. And the price of goods in our country increases for no reason.

If you get any excuse, the price of daily necessities is increased. And although the price of goods has recently decreased in the world market, the record amount has increased, far from decreasing. The lower and middle classes are all suffering. Common farmers, laborers and daily wage earners are most in danger.

Due to the lack of daily necessities, people's lives have come down to starvation, malnutrition and various types of complex diseases. As a result, it has an overall effect on the national image of a countryAnd after the fall of the Awami League government in the student uprising, the new interim government has undertaken reforms in various sectors. But steps are less in providing relief to the people by reducing the price of goodsAccording to government agency Trading Corporation of Bangladesh (TCB), the prices of six essential commodities have increased in about two months after the new government took office. Only two have decreased.

The price of vegetables is very high in the market now. The price of eggs per dozen has increased to Tk 170. There is no relief in the price of chicken and fish. All in all, the suffering of low and low income people has not decreased.

To reduce inflation, Bangladesh Bank has taken steps to reduce the supply of money in the market by lifting the reins on interest rates. As a result, interest rates have increased. The price of the US dollar rose and stabilized at one place. But due to interest rates and the value of the dollar, the cost of commodity traders has increased.

According to government agency Trading Corporation of Bangladesh (TCB), the prices of six essential commodities have increased in about two months after the new government took office. Only two have decreased.

Market analysts say the move to rein in interest rates is right. It will reduce the supply of money in the market. The demand for the product will decrease. Inflation is also likely to come down. But this principle is not so effective in case of essential products. Because the demand for those products is always there. Demand, supply and price of those products do not depend so much on the supply of money in the market. Specific steps are needed to reduce the prices of these products.

such as eggs. Its price depends on production cost, demand and supply. When people have less money, the demand for eggs increases. Initiatives should be taken to increase the supply to reduce the price of eggs. And the continued high prices during the Awami League government created resentment among all the people in the towns and villages. Then the government showed indifference instead of taking effective initiatives. And the market and supply system of daily commodities needs reform. After handling a big ministry like the Ministry of Finance, there is little opportunity for Advisor Salehuddin Ahmed to pay enough attention to the Ministry of Commerce. There are many challenges centered on this ministry now, and will increase in the future. Here it is necessary to appoint an adviser with sole responsibility, who will work outside the conventional.

When people have less money, the demand for eggs increases. Initiatives should be taken to increase the supply to reduce the price of eggs.

Prices increased, decreased

Analyzing the market price list of TCB, it can be seen that compared to last Thursday, October 3, coarse rice has increased by Tk 1 per kg, open soybean oil by Tk 6 per liter, palm oil by Tk 12, broiler chicken by Tk 10, sugar by Tk 3 and eggs by Tk 15 per dozen.

On the contrary, the price of onion and potato has decreased by Tk 5 per kg. There were specific steps taken by the government regarding these two products. Initiatives were taken to increase supply to the market by reducing duties and arranging imports.

The list of TCB does not include prices of vegetables other than potatoes. However, the prices of different types of vegetables are mentioned in the market price list of the Department of Agriculture Marketing. According to them, the prices of most vegetables are higher now than on August 8.

For example, the price of brinjal is now Tk 60 to Tk 100 depending on the variety, which was Tk 40 to Tk 80 on August 8. Similarly, the current season vegetable chichinga is Tk 50 to Tk 80 per kg, which was Tk 35 to Tk 60 a couple of months ago.

Onion and potato prices have decreased by Tk 5 per kg. There were specific steps taken by the government regarding these two products. Initiatives were taken to increase supply to the market by reducing duties and arranging imports.

Eggs and farm-raised chickens are major sources of animal meat for low- and low-income families. A dozen of eggs is now Rs 165 to Rs 170, two years ago it was usually Rs 100 to Rs 110 throughout the year. Broiler chickens are priced at Tk 180 to Tk 190 per kg, which is Tk 20 less than a week ago. Two years ago, buyers could buy broiler chickens usually between Tk 130 and Tk 140.

After Russia invaded Ukraine in February 2022, the country's foreign exchange reserves continued to decline. The value of the US dollar continues to rise. After that, the prices of all products started increasing.

The prices of almost all daily necessities including rice, pulses, edible oil, sugar, eggs, fish, meat, vegetables, spices and factory-produced soap, toothpaste, tissue, coconut oil, baby food, cosmetics etc. have increased. On the other hand, the Awami League government has gradually increased the prices of fuel oil, gas, electricity and water, which has again increased the cost of production of industrial products.

The Awami League government adopted the strategy of fixing the prices of goods in some cases; But it didn't work. Still not working. For example, the fixed price of a 12 kg cylinder of Liquefied Petroleum Gas (LGP) is now Tk 1,456. Roshan Ara, a resident of Sheorapara, bought a gas cylinder last Wednesday. He said, the price of gas has taken 1 thousand 700 taka.

The price of any commodity is not under control in the market. Everyone is selling at higher prices. Buying curry (vegetables) below 80-100 rupees.

What is the new government doing?

Bangladesh Bank Governor Ahsan H Mansoor, after taking office last August, began implementing a strategy to deregulate interest rates to reduce inflation. As a result, interest rates have increased. The price of the dollar has stabilized around Rs.120. Inflation eased slightly to just under 10 percent last month. Although food inflation is still above 10 percent. It means that people had to spend 100 rupees to buy food in September last year, now it costs more than 110 rupees.

Bangladesh Bureau of Statistics (BBS) calculates inflation by taking into account the prices of more than 500 goods and services. However, low income families are under pressure when the prices of some daily commodities increase. The prices of these products are already high. People's wages are not increasing according to inflation. The BBS says wages rose by 8 per cent in September, against inflation of around 10 per cent. It means that people's purchasing power has decreased further.

After the new government took over, the commerce ministry had appealed to the National Board of Revenue (NBR) to reduce the duty on onions, potatoes and eggs to bring down prices. NBR reduced duty on onion and potato. The prices of these two products have decreased slightly. Apart from this, no effective measures have been seen to reduce the prices of daily commodities.

How to reduce cost:-

Allowing interest rates to rise is the right move to reduce inflation. However, certain steps can be taken.

In the short term, the government can take some steps.

* Firstly, reduction of duty on rice, sugar, edible oil and eggs. This will create an opportunity to lower prices and increase supply. A kg of sugar now has a duty of Rs 44. The Awami League government had imposed high rates of customs duty on some commodities including sugar to meet the revenue collection target.

* Second, revising the value of the dollar in determining customs duties. Customs now levies duty at Tk 120, which was Tk 118 last month. In this case the customs value or tariff value may be reduced or the duty may be reduced.

* Thirdly, India has opened up rice exports. Lowering the duty on rice will create opportunities for imports. Then domestic rice stockists will be forced to reduce prices in the face of competition.

* Fourthly, giving opportunity to import eggs by reducing duty even for a limited period. Facilitate imports to increase competition in the poultry feed market, thereby reducing production costs for farmers.

* Fifthly, reducing the price of diesel. Now a liter of diesel comes with a duty of 21 rupees. In this case, the profit of Bangladesh Petroleum Corporation (BPC) can also be reduced by making concessions. This will reduce the cost of transportation, which will reduce the cost of delivering goods.

* Sixth, the supply system needs to be reformed. Successful market surveillance requires steps to use ripe receipts, formalize transactions, eliminate extortion and remove middlemen from markets.

* Seventhly, the market of various daily products of the country is occupied by a few companies and importers. Steps should be taken to increase competition there.

* Eighth, it is important to make the statistics of product demand, production and supply credible. Because, if there is no proper calculation, proper policy cannot be taken. The accounts of production given by government agencies are not reliable.
Finally, the government of each country has taken various initiatives to ensure that the price of goods in its own country does not go beyond the purchasing power of the general public. In our country also other laws including Consumer Rights Act need to be enforced. In this case, dishonest and more profitable traders should be suppressed with strict hands, market monitoring should be increased, mobile court should conduct regular operations, price lists of daily necessities should be hung in front of shops in the market. Above all, it is absolutely necessary to provide government subsidies on increased prices to control commodity prices. And at the moment, controlling commodity prices
I believe that should be a priority activity of the interim government.

The writer is a, organization, columnist and researcher Founder and Chairma,Jatiya Rogi Kallyan Society.