Originally posted in Daily Observer on 22 August 2022
Unbridled price hike makes life miserable
After the latest hike in fuel prices, all essential commodities, vegetables, food grains including, rice prices have increased. The staple has registered an increase of Tk 4 to Tk 5 per kg in the market. No one dealing in rice in the country, including the traders in Babubazar, the main wholesale outlet in the capital, are able to predict a reduction in the price of the staple anytime soon.
Even after importing of rice from abroad, prices are unlikely to come down, say traders.
Meanwhile, the prices of all types of pulses have suddenly increased. Anarchy is going on in the market of rice and pulses.
Rice is in discussion throughout the year due to the rise in prices. Floods, increase in fuel prices acted as the reasons behind the rice market collapse. In the capital’s retail market, coarse rice is now selling at Tk 55 per kg and fine rice at Tk 80. Apart from rice, the price of lentils have increased by at least Tk 10 per kg in two weeks. The price of coarse lentils has increased the most. Retail traders complain that they are trying to raise prices by stockpiling.
They say, the price manipulation of the syndicate must be stopped now. On the other hand, big businessmen say import costs have gone up due to high dollar rate and exorbitant transport costs due to rise in fuel prices.
All types of public transport including launch-bus fares have increased.
House owners are also seeking to increase house rents due to the price hike. Every day the pressure of the landlord increases. Even buying life-saving drugs have become difficult due excessive price hike.
Even laundry bills, haircuts at salon also cost extra money. But incomes are at the same level as before, not increasing at all, in many cases decreasing. The lower and middle classes are gasping. Their opinion – “We are helpless, there is no one to listen to our pain. Life is no longer going on.”
Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD) said the price of daily necessities is sky high. But food-inflation is controlled in the government accounts, which is 5.3 per cent from October 2021 to January 2022. Less than the target. But this is not an accurate picture compared to reality.
She said the pressure on low income people is increasing continuously. Inflation of one product has been from 6 to 15, 20 and 30 per cent.
The said figure was found by talking to people of different classes and professions in different areas of the capital on Saturday. On this day, the kitchen markets of various areas including Kawran Bazar, Malibagh, Nayabazar and other areas of Dhaka have been visited and it has been seen that the buyer is spending Tk 55 per kg on coarse rice with an increase of Tk 8 to Tk 10 per kg. Prices of pulses, edible oil, and broiler chicken are rampant.
Tk 55 to Tk 60 to buy every hali (4 pieces) of eggs. The fish which are generally available at low prices in the market – pangas and tilapia, have also increased by Tk 60 to Tk 70 per kg. Potatoes, onions and chillies are also expensive.
In such a situation, many buyers come to the market and make cuts in the purchase list. Apart from this, house rent has been increased from Tk 2,000 to Tk 4,000 in various places. The pressure continues on those who have not increased. And water, electricity and gas bills have increased quite a while ago. All in all, common people are fed up.
Besides, in case of minibuses plying in Dhaka and Chattogram metropolis and buses and minibuses playing within the districts under Dhaka Transport Coordination Authority (DTCA) (Narayanganj, Munshiganj, Narsingdi, Gazipur, Manikganj and Dhaka), the fare per passenger per kilometer will be increased from Tk 2.05 to Tk 2.40. The minimum fare for buses and minibuses plying in Dhaka and Chattogram cities has been fixed at Tk 10 and Tk 8 respectively.
In a press conference at the Secretariat on Wednesday, Commerce Minister Tipu Munshi said that where rice was supposed to be increased by .50 poisa per kg, traders have increased it by Tk 4.
Former Director General of Bangladesh Development Research Institute (BIDS) Dr MK Mujeri said, “There will be a free market economy. But this does not mean that traders will be free to do whatever they want. Although many countries in the world have free market economies, there are also regulatory systems in the hands of the government. This control system should be kept in Bangladesh as well. For this, it is important to increase the monitoring capacity of the responsible institutions.”
Siddiqur Rahman, the owner of Al Madina Rice Agency in Kawran Bazar and a rice seller, said, “The millers were increasing the price of rice even before the increase in the price of fuel oil. As the price of rice imported from India is high, they manipulate and increase the price of local rice by Tk 4 to Tk 6 per kg.
Meanwhile, in the retail market on Saturday, eggs were sold at Tk 40 hali, which was Tk 55 in the three days ago.
Rubel Hossain, a day labourer in the capital said that six months ago, the price of a 24 kg bag of flour was Tk 680. It is now Tk 1,250. Price per kg is Tk 52. But before, he used to sell each bread for Tk 10, still the same price.