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The Price Hike of Essential Commodities in Bangladesh: A Call for Urgent Action by the Interim Government

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Bangladesh is currently in the midst of a steep and persistent rise in the prices of essential commodities, inflicting severe hardship on the general population. Over the past several weeks, prices of staple items like rice, eggs, cooking oil, and vegetables have skyrocketed, placing them beyond the reach of many households. This escalating inflation is pushing the country toward a potential economic crisis, and without swift and decisive action from the interim government, led by the Chief Adviser and the advisory panel, the situation could spiral into widespread social unrest.

 Overview of the Price Hike

In just a few weeks, the cost of nearly every essential food item has seen dramatic increases. The price of rice—a staple in every Bangladeshi household—has risen by several takas per kilogram. Eggs, once considered an affordable source of protein, have surged by 10 to 15 BDT per dozen. Broiler chicken, a dietary staple for many, now costs 20 to 30 BDT more per kilogram than it did just a month ago. Similarly, palm oil and other cooking oils have increased by as much as 15 BDT per liter. Vegetables, which once formed the cornerstone of affordable home-cooked meals, have become prohibitively expensive, as have essential items like onions and garlic.

The sheer scale of these price hikes has left the population reeling, with many struggling to meet their basic nutritional needs. According to market analysts, these sharp increases cannot be attributed solely to natural market forces like supply and demand. Instead, a combination of unethical business practices, manipulation by intermediaries, and poor regulation has fueled the price surge. Despite government efforts to set fair prices, consumers are forced to pay significantly higher rates in the open market, exacerbating their financial burdens.

Unraveling the Mystery Behind the Uncontrolled Market

One of the most puzzling aspects of this price surge is the lack of a clear, logical explanation. The prices of many commodities have increased despite global markets showing stability or even a reduction in the costs of key goods. Many suspect that powerful syndicates are controlling the prices, taking advantage of weak governmental oversight to raise prices at will, with little fear of consequence. These market manipulators, operating without restraint, are exploiting consumers and further driving up inflation.

For example, despite government-imposed price limits on palm oil and soybean oil, retailers continue to sell these products at inflated rates. Loose soybean oil, for instance, which is supposed to sell for 147 BDT per liter, is commonly priced at 155 BDT. Likewise, wheat prices have not decreased domestically despite a global drop in August 2023, leaving the average Bangladeshi consumer trapped in a cycle of escalating costs.

The Impact on Basic Commodities

The most striking increases have occurred in the prices of basic, everyday commodities. Eggs, which sold for 150–155 BDT per dozen last month, now cost 170–175 BDT. Broiler chicken prices, set by the government at 179.59 BDT per kilogram, are now being sold for as much as 190 BDT. Even the price of Sonali chicken has risen by 20 BDT per kilogram within a single week.

Rice, the most basic staple in Bangladeshi diets, has also been affected, with prices increasing by 3 to 5 BDT per kilogram. Vegetables like beans, tomatoes, and cucumbers, previously affordable, now cost over 50 BDT per kilogram, making it increasingly difficult for low-income households to maintain a balanced diet. Onions, a critical component in many Bangladeshi dishes, have seen their price rise to 110–120 BDT per kilogram, while local garlic has reached 220 BDT—both well beyond the means of the average consumer.

The Role of Syndicates in the Market

The sharp rise in prices has sparked widespread speculation that market syndicates are behind the price manipulation. The Bangladesh Poultry Association (BPA) has directly accused multinational corporations and powerful egg traders in Tejgaon of driving up the cost of eggs. These large entities, along with major poultry feed suppliers, have a stranglehold on the market, dictating prices and squeezing out smaller farmers who lack the power to compete.

Breaking up these powerful syndicates and addressing monopolistic practices is crucial to stabilizing the market and ensuring that essential goods remain affordable. The BPA has called for reforms, including reducing the cost of poultry feed, which could help drive down the price of eggs and poultry.

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Market Analysts’ Views

Market analysts have voiced serious concerns about the unchecked price hikes. The Vice President of the Consumers Association of Bangladesh (CAB), S.M. Nazer Hossain, has pointed out that the increases are largely unjustifiable, given that global prices for many commodities have dropped. He has also called into question the effectiveness of government regulatory bodies such as the Tariff Commission and the Bangladesh Competition Commission, which have failed to implement meaningful measures to protect consumers.

Hossain further highlighted the failure of government decisions to have a tangible impact on the market. Despite the reduction of transportation costs and a decrease in import duties on 29 essential goods, consumers have seen no relief at the marketplace. This disconnect between government policy and market reality has only deepened public frustration.

Government and Regulatory Agencies’ Actions

In response to growing public outcry, the Bangladesh Competition Commission (BPC) and the Tariff Commission have pledged to take stronger action. The BPC has already initiated cases against companies suspected of price manipulation and continues to monitor the costs of essential goods. However, these steps have been criticized as being too little, too late.

Critics argue that these regulatory agencies lack the necessary authority and coordination to bring meaningful change to the market. Without stronger enforcement mechanisms and a more aggressive approach to tackling monopolies and unfair practices, the price hikes are unlikely to subside.

A Call to the Interim Government

The alarming rise in prices demands urgent and sustained intervention from the interim government. The Chief Adviser, along with the advisory panel, must treat this as a top priority. Immediate measures should be taken to enforce market regulations, hold profiteering traders accountable, and break up the syndicates controlling the supply chain.

Regulatory bodies like the BPC and the Tariff Commission must be empowered to act swiftly and decisively, ensuring fair competition and transparency in the market. The government should also consider long-term strategies to improve market oversight and prevent future price manipulation.

Failure to act now could lead to an escalation of social unrest, as frustrated citizens, already burdened by inflation, grow increasingly disillusioned with the government’s ability to protect their interests. If the interim government does not take immediate steps to stabilize the market, the economic and social consequences could be disastrous.

In Conclusion, The price hike of essential commodities in Bangladesh has created an untenable situation for the country’s population, driven by unchecked market manipulation, syndicate control, and ineffective government oversight. The interim government must act quickly and decisively to restore market stability and protect the livelihoods of its citizens. Only through transparent, coordinated efforts can the country avoid further economic instability and social unrest. The time for action is now.

Billal Hossain
Billal Hossainhttps://www.bidibo.xyz/
Billal Hossain, a seasoned professional with a Master's degree in Mathematics, has built a rich and varied career as a banker, economist, and anti-money laundering expert. His journey in the financial sector has seen him in leading roles, notably in AL-Rajhi Banking Inc. in the Kingdom of Saudi Arabia and as Foreign Relations and Correspondent Maintenance Officer of Bank-AL-Bilad. Beyond the confines of traditional finance, Billal has emerged as a prominent writer and commentator, contributing thought-provoking columns and theses to various newspapers and online portals. His expertise spans a wide range of important global issues, including the complexities of economics, political dynamics, the plight of migrant workers, remittances, reserves, and other interrelated aspects. Billal brings a unique analytical perspective to his writing, combining academic rigor with practical insights gained from his banking career. His articles not only demonstrate a deep understanding of complex issues but also provide readers with informed perspectives, bridging the gap between theory and real-world application. Billal Hossain's contributions stand as a testament to his commitment to unraveling the complexities of our interconnected world, providing valuable insights that contribute to a broader and more nuanced understanding of the global economic landscape.

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