PERSISTENT food inflation was a major issue that aggrieved people, especially low- and fixed income people, who were disappointed about inadequate regulatory measures and took to the streets during the Awami League鈥檚 rule. Low-income people, who were one major group that actively participated in the July uprising, did expect that the interim government would be sincere and succeed in containing food inflation by busting the market syndicates that are largely responsible for food inflation. The situation has, unfortunately, not improved and, in fact, worsened to an extent. Prices of most goods have increased over two months since the interim government assumed office on August 8. Prices of rice, vegetables, eggs and chicken have surged excessively over the month while prices of other commodities have remained high. The price of rice of all varieties increased by Tk 6鈥�8 per kilogram over two months while the price of chicken increased by Tk 30鈥�40 a kilogram in the same period. Prices of edible oil increased by up to Tk 10 a litre while the price of eggs increased by Tk 20鈥�30 a dozen in the month.
The government has put in some efforts and taken some initiatives such as increasing market oversight, authorising import, reducing import duties on some products and setting prices of some other products. In its recent initiative, the government has established a special task force at the district level to monitor and assess the market and the supply situation of essential goods. The authorities earlier reduced import duties on sugar, potatoes and onions, but they failed to influence prices of the commodities. The Department of Livestock Services set prices of eggs and chicken on September 15 but has failed to make traders follow the prices. The authorisation of import of eggs, the demand for which is met with local production, has also failed to arrest the price increase. The measures have failed, as the Consumer Association of Bangladesh says, because all the long-standing issues in the supply chain, especially market manipulation by business cartels, have persisted. The volatility on the egg market is, as the Bangladesh Poultry Association says, caused by the corporate giants and a syndicate of wholesale traders. The claim is not unfounded as it was earlier found that wholesalers and big businesses were behind the market instability. The Competition Commission on January 23 even fined two poultry farms 鈥� Diamond Egg Limited and CP Bangladesh 鈥� Tk 3.5 crore for their alleged collusive practices in artificially increasing prices of eggs.
Weak market management, poor policies, insufficient and untimely import, the high cost of fuel oils and gas and errant businesses are what have pushed food inflation up. It is unacceptable that the government has failed to address the issues adequately and go tough against manipulation. The authorities should show the dynamism needed to contain food inflation. The authorities should establish an effective market oversight mechanism and bust the syndicates.
