Photo : Messenger
The lower-income and marginalised populations are crumbling under the price hike of essential commodities. They have either struck items off their daily shopping list or reduced the quantities of purchases for the kitchen, which feeds hungry members of their families every day.
Rice, lentils, vegetables, onions, potatoes, eggs, chickpeas, cooking oil, spices, and other commodities have become unaffordable. Meat and fish, recommended for protein intake, are now considered a luxury for the marginalised.
When carbohydrates and so-called “poor people’s protein” become costlier, they have no alternative but to reduce their intake of rice, wheat, and lentils.
The marginalised communities in the cities and towns are renting cheaper houses, which are unhygienic, without running water and poor sanitation, to adjust to their limited income and buy food and essential commodities to feed their families.
The price hike of essential commodities has been a matter of constant concern for the people of Bangladesh in general, and the poor and fixed-wage earners in particular, according to a study commissioned by a United Kingdom research organisation.
Several studies indicate that most of the poor spend more than half of their income on food. Price hikes for essential commodities can force them to cut back on the quantity or quality of their food, as well as change their consumption patterns.
Recently, a research centre commissioned a study of people's attitudes and behaviour, as well as the situation of lower-middle-class people who struggle greatly against economic crises.
Ramadan is around the corner, and dates, sugar, chickpeas, onions, lentils, spices, brown wheat, and flour have already risen in price. The price has been fixed by the bulk importers and traders before the tariff for several commodities has been either reduced or temporarily waived.
The Ministry of Commerce has decided to reduce duties on four essentials – rice, oil, sugar and dates because of the upcoming month of Ramadan.
Last week, the NBR reduced Value-Added Tax (VAT), which will come into effect immediately in a bid to curb the rising prices of essential commodities ahead of Ramadan.
S M Nazer Hossain, Vice President of the Consumers Association of Bangladesh (CAB), lamented that the government is businessperson-friendly, not consumer-friendly.
The incentives and facilities extended by the government to the importers and traders do not necessarily benefit the consumers, Hossain remarked.
The importers and sellers always have the upper hand, while consumers groan under the weight of the price hike of commodities, which is unfortunate.
Besides various authorities, stakeholders from citizen groups should be included in monitoring the price of essential commodities, which will ensure checks and balances in the market.
The citizenry is concerned about what to buy for the kitchen, and the homemakers are worried about what to serve at the dinner table.
This worry has been caused by the spiralling price hike of essential commodities as traders' rule dominates the countrywide market and shows their disregard for the government’s threats.
The biggest challenge to establishing consumer rights is the threats and intimidation by corporate groups of companies and syndicated traders, explains Hossain.
Hossain said that the regulatory bodies, the Ministry of Commerce, the Ministry of Industries, the Trade and Tariff Commission, Sea and Land Ports, the National Board of Revenue, and Bangladesh Bank conspicuously remain silent when traders spike prices of essential commodities.
The mobile courts taking the traders to task for violating government-fixed prices for commodities have made the campaign a ‘tamasha’. The mobile courts raid small traders who bought the commodities from importers and agents are targets of the magistrates of different regulatory bodies, remarked Hossain.
He said that most of the commodities have either arrived in different ports or are in the pipeline of importation. They will take the benefits of the tax waiver of the government’s decision for commodities for Ramadan.
Prime Minister Sheikh Hasina, soon after the formation of the Cabinet, addressed the spiralling price of commodities. The election manifesto of the ruling Awami League also gave priority to the pressing issue.
When the Prime Minister is sincerely pursuing the issue of prices of essential commodities, the government authorities should also implement the desire of the PM, not in words but in reality, Hossain said.
However, he also added that the bureaucrats are not consumer-friendly, the benefits go to the pockets of the importers and traders.
The importers and large corporations are owners who are leaders of the elite business bodies, like the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), Metropolitan Chamber of Commerce and Industries (MCCI), Dhaka Chamber of Commerce and Industry (DCCI), and other trade bodies.
Now the manufacturers and importers of cooking oil, sugar, salt, and other commodities have independent bodies, which are equally very influential in the market. They can control and regulate prices, which makes it difficult for the regulatory authorities to negotiate price stabilisation with the producers too.
Consumers Association of Bangladesh (CAB) does not have the power to influence the giant traders, but with cooperation from consumers and media, they can ventilate the consumer's voice to reach the policymakers and politicians.
CAB’s campaign is to ensure that the price of commodities is reasonable and affordable for the lower-income communities and urban middle-class society.
It is equally true that the Ukraine-Russia war has caused several negative impacts on global food prices, fuel, and other commodities. The current rise in the domestic cost of production of food, together with high prices in the international market, may further boost food inflation, leaving adverse effects on the poor.
In Bangladesh, the persistent increase in the rate of inflation since 2022, especially the rise in food prices, seems to be the outcome of both supply and demand side factors.
A study by the Policy Analysis Unit (PAU) of the Bangladesh Bank identifies several short and long-term factors, including supply shortages of essential commodities due to disruptions in domestic production resulting from natural disasters and other factors; persistent rise in world market prices of food and other commodities that Bangladesh imports; high expected inflation; depreciation of the exchange rate; and others which contribute to generating inflationary pressure in the economy.
The results highlight the importance of prudent supply management in a situation when the Bangladesh economy is becoming increasingly integrated into the global economy.
Hossain said that several observations by several research organisations, other think tanks, and also the Bangladesh Bank reports in a decade could be useful lessons learned for the government in its efforts to address issues such as price hikes.
Messenger/Disha
