A sudden increase in prices of eggs by Tk 25–30 a dozen is abnormal and hints at market manipulation. The Poultry Association also alleges that the price increase is unusual and artificial. The association’s chair at a programme on May 25 alleged that the syndicate of wholesale egg business and corporates were controlling prices for windfall profits. The association also alleges that the syndicate sometimes decreases prices through text messages and at the same time, they store their products in cold storage to create an artificial shortage. Such a situation forces marginal farm owners to sell eggs from their farms for low prices and incur losses. After creating an artificial shortage, the syndicate increases the prices abnormally and sells the stored eggs to make windfall profits. The government set prices of eggs at Tk 12 a piece in September 2023 and shortly after setting the prices, the syndicate reportedly decreased the price to as low as Tk 11 a piece only to increase it later.
The companies also manipulate prices of one-day chick and chicken feed, which makes small-time farmers lose their business. The association’s claim is not unfounded as the government earlier found wholesalers and big businesses behind price increase and fined them. On January 23, the Competition Commission fined two poultry farms, Diamond Egg Limited and CP Bangladesh, Tk 3.5 crore for their alleged collusive practice in artificially increasing egg prices. As the demand for eggs on the domestic market is met with local production, any sudden increase in price reflects the collusive practice of big businesses in artificial shortage and increased consequent prices. The Poultry Association also holds the livestock services department responsible for the instability on the egg market and alleges that the department hardly looks into the interests of marginal farmers and, rather, protects the interests of corporates and wholesalers. The increase in prices of other staple items such as edible oils, sugar and rice also suggests market manipulation on the excuse of an artificial supply shortage. Such manipulation is largely to blame for the record inflation. Prices of staple items increased by 20–100 per cent in the past year although food prices declined on the international market. Weak market management, poor policies, insufficient and untimely import, the high cost of fuel oils and gas and errant businesses are what have pushed up food inflation.
The authorities must, therefore, go tough on market manipulators to stop volatility on the egg market. The government must also ensure that small-time farmers do not fall prey to corporate tricks. The authorities need to realise that lacklustre efforts will not contain food inflation. The authorities must show the dynamism needed to contain food inflation. And, it must establish an effective market oversight mechanism.
