The soaring prices of commodities in Bangladesh: A looming crisis

In recent times, Bangladesh has been grappling with a relentless and worrying issue that affects the lives of every citizen, especially low-income people - the unabated surge in the prices of daily essentials. From rice to vegetables, from cooking oil to basic hygiene products, the prices have been skyrocketing, placing a heavy burden on the shoulders of the average Bangladeshis. This concerning trend is not just a matter of economic inconvenience; it poses a severe threat to the livelihoods and well-being of millions of people across the country.

Arifur Rahman, a medical representative by profession, usually goes to the kitchen market in Dhaka’s Rampura with Tk 500 every weakened, Friday. The amount was enough for buying daily essentials for his four-member family a few months ago but it is not enough anymore as prices of almost every essentials have gone up further in recent times.

Even vegetables have become costlier. There is no vegetable that can be bought for less than Tk 30 a kg. Most of the vegetables are selling for Tk 50 or above per kg in the kitchen market. This price hike is just too much for a person like Arif who gets a monthly salary of Tk 30,000. Be it vegetable, egg, fish or grocery, there is no item whose price has not gone up.

The reasons behind this surge in prices are complex and multifaceted. Factors like the global economic situation, rising fuel prices, climate change-induced disruptions in agriculture, and even the Covid-19 pandemic have all played a part in driving up costs. On top of it, trade with Russia and Ukraine has been cut off due to the ongoing war, resulting in an increase in purchase orders from alternative markets, claimed businessmen as per the media reports.

However, it is essential to dissect these factors to understand the extent of the crisis and find sustainable solutions.

First and foremost, the global economic situation has an undeniable influence on prices in Bangladesh. As a country that heavily relies on imports for various commodities, Bangladesh is vulnerable to fluctuations in international markets. The depreciation of the Bangladeshi Taka against the US dollar has made imports more expensive, directly impacting the prices of essential goods. To counter this, the government needs to pursue prudent economic policies that stabilize the currency and reduce the dependence on imports.

Rising fuel prices also contribute significantly to the problem. Fuel is a fundamental element of transportation and production, and any increase in its cost inevitably trickles down to consumers. A long-term solution would be to invest in renewable energy sources and promote energy efficiency to reduce the nation's reliance on fossil fuels. In the short term, subsidies or price controls on fuel can provide temporary relief for consumers.

Climate change has disrupted agriculture in Bangladesh, leading to crop failures and reduced yields. Storm, river erosion, floods, and droughts have become increasingly frequent, affecting farmers' ability to produce enough food. Investment in resilient farming practices and crop diversity can help mitigate the impact of climate change on agriculture and stabilize food prices.

The Covid-19 pandemic has disrupted global supply chains, affecting the availability and cost of various goods. While the pandemic's full extent is beyond our control, a more robust domestic production system can help buffer Bangladesh from such shocks. Encouraging local industries and fostering self-sufficiency in essential sectors can reduce dependence on international markets and enhance resilience.

While it is evident that external factors play a significant role in the price hike of daily essentials, it is crucial to acknowledge the government's role in addressing this crisis. The Bangladeshi government should prioritize its citizens' well-being by implementing targeted policies to alleviate the burden of rising prices. These measures may include direct cash transfers or subsidies to vulnerable populations, price controls on essential goods, and investment in social safety nets to protect the most marginalized.

Moreover, enhancing transparency and accountability in the supply chain can help curb profiteering and ensure that consumers are not exploited. Regulatory bodies must work diligently to monitor and regulate market activities to prevent unfair price hikes.

The ongoing price hike of daily essentials in Bangladesh is not just an economic challenge; it is a humanitarian crisis that affects millions of lives. Addressing this issue requires a comprehensive approach, including economic reforms, climate resilience, and proactive government intervention. It is high time that all stakeholders, from the government to civil society, come together to find sustainable solutions and ensure that no Bangladeshi goes to bed hungry due to soaring prices. The future of our nation depends on it.

The writer is a journalist. He can be reached at [email protected]