Government must tame rising prices

The people of Bengal have always been bewildered by the heat (excessive commodity prices) in the market. For ages, year after year, they have had to battle this market chaos. It is said that when the price of eggplants rose, littérateur Bibhutibhushan Bandopadhyay created quite a stir in the market. The constant worry about market prices is a significant concern for the people of Bengal, largely due to the fact that there are more people than production in this region, and expenses exceed income. Thus, the primary concern becomes merely surviving and making ends meet.

Typically, whenever there is political instability in the country, the market spirals out of control. This was true during the British colonial period, as well as during the Pakistani regime. Since the independence of Bangladesh, the people have witnessed several political upheavals. The famine of '74 is a notable example. After the deaths of Sheikh Mujibur Rahman and Ziaur Rahman, the market became unexpectedly unstable. During Ershad's regime, the market was perpetually out of control.

Subsequently, in the 1990s, the Gulf War pushed the market even further into chaos. We remember how, after the Gulf War, the prices of salt and kerosene rose dramatically and never returned to previous levels. At that time, most people in Bangladesh were heavily dependent on kerosene, making the sudden price increase a source of widespread panic.

Three more decades have passed since then. Bangladesh has experienced multiple phases of democratic governance, yet market control remains elusive. In fact, prices have been rising day by day. Recently, the market prices have skyrocketed: a dozen eggs costs 170 takas, onions 120 takas, potatoes 50 takas, and green chilies 400 takas. There is hardly any vegetable priced below 80 takas. All essential goods are now out of reach. Not only low-income individuals but also middle and upper-class families are struggling to meet their daily needs.

It's not just the cost of food; there are other expenses to consider. Living in urban areas makes it even more challenging. Most of their income goes towards house rent, medical expenses, and their children’s education, leaving little room for two square meals. The situation in rural areas is even more dire, with insufficient income and prices for essential goods remaining consistently high.

People had hoped that the popular uprising would dismantle the syndicates and bring down prices. In the initial days, such promises were made. It was said that hilsa would no longer be exported to India, and we would be able to eat it at lower prices. But has hilsa actually become accessible? Prices for vegetables and all daily essentials are climbing rapidly. The government is failing to control commodity prices and is unable to break the syndicates. According to the Trading Corporation of Bangladesh (TCB), since the new government took office, the prices of six essential goods have increased in the past two months, while only two have decreased.

The rise in commodity prices is attributed to inflation. To combat inflation, the Bangladesh Bank has taken steps to reduce the money supply in the market by increasing interest rates. However, market analysts argue that while raising interest rates is a correct move to reduce the money supply, it may not be very effective for essential goods. The demand for these items remains constant, regardless of changes in the money supply. Therefore, specific measures are needed to reduce the prices of these essential goods.

As we know from economic principles, an increase in supply typically leads to a decrease in demand, which in turn lowers prices. Thus, a significant way to reduce commodity prices is to either increase production or boost imports to meet market demand. If consumers do not have adequate access to products, prices will inevitably rise. People must fulfill their daily needs; they cannot afford to suffer from malnutrition by eating less.

Therefore, we advocate for an increase in the production and import of essential goods in Bangladesh, given the population size. Essential items must be made readily available. The government must remember that if it cannot lower the prices of essential goods, it will continue to face scrutiny. The responsibility to extinguish the heat in the market lies with the government.