Price hike

The ongoing hike in prices of essentials is a chilling reminder of the structural problems facing the marketing of perishable food items in this country. Vegetable and fruit prices rise abnormally for several reasons, including a sudden spike in demand. And when the demand exceeds supply, prices go through the roof. However this recent price hike defies all logic. For instance it has been alleged that the skyrocketed onion prices has not been caused by a real supply shock but because of market manipulation by some unscrupulous traders. Unscrupulous traders have been exerting unbearable pressure especially on fixed income groups of people in society.

Though, apparently there is an adequate supply of essential commodities, their prices keep on soaring and this has been impacting negatively on the price level of other commodities as well. Dishonest traders sometimes take the chance of incidents that have nothing to do with the price hike. Profiteer syndicates often create an artificial crisis of essential items to increase prices and multiply profit. Most middlemen claim excessive profit at times and this also increases prices of essentials irrationally.

Every year, we report on the practice of increasing food prices. But, this year, with the excuse of excessive rainfall and flooding in one part of the country only, the price hike has is showing no signs of coming down. But how much the destroyed rice and crops in affected areas contributed to this price increase, is still not clear.  We must also remember that the worst affected from the natural calamities are people who are going to be the most burdened with this extra cost. Even if it is argued that the price of some essentials increased due to rainfall, it does not account for the wide range of commodities whose prices have been hiked.

Strong government monitoring needs to be ensured to see what is causing this hike. Are there syndicates hoarding food essentials to create an artificial shortage and adding to the inflation? A recent estimate by an FAO expert puts the number of people in Bangladesh suffering from malnutrition at 2.6 crore. Hiking the price of food items now only adds to the problem, and as always it is the poor and the middle classes that will be affected the most.

 Under these circumstances, government should realise the situation and take remedial measures as price hike is playing havoc with budget of the people in the absence of any corresponding increase in salaries and relief for the poor.

 

Price hike

The ongoing hike in prices of essentials is a chilling reminder of the structural problems facing the marketing of perishable food items in this country. Vegetable and fruit prices rise abnormally for several reasons, including a sudden spike in demand. And when the demand exceeds supply, prices go through the roof. However this recent price hike defies all logic. For instance it has been alleged that the skyrocketed onion prices has not been caused by a real supply shock but because of market manipulation by some unscrupulous traders. Unscrupulous traders have been exerting unbearable pressure especially on fixed income groups of people in society. Though, apparently there is an adequate supply of essential commodities, their prices keep on soaring and this has been impacting negatively on the price level of other commodities as well. Dishonest traders sometimes take the chance of incidents that have nothing to do with the price hike. Profiteer syndicates often create an artificial crisis of essential items to increase prices and multiply profit. Most middlemen claim excessive profit at times and this also increases prices of essentials irrationally. Every year, we report on the practice of increasing food prices. But, this year, with the excuse of excessive rainfall and flooding in one part of the country only, the price hike has is showing no signs of coming down. But how much the destroyed rice and crops in affected areas contributed to this price increase, is still not clear. We must also remember that the worst affected from the natural calamities are people who are going to be the most burdened with this extra cost. Even if it is argued that the price of some essentials increased due to rainfall, it does not account for the wide range of commodities whose prices have been hiked. Strong government monitoring needs to be ensured to see what is causing this hike. Are there syndicates hoarding food essentials to create an artificial shortage and adding to the inflation? A recent estimate by an FAO expert puts the number of people in Bangladesh suffering from malnutrition at 2.6 crore. Hiking the price of food items now only adds to the problem, and as always it is the poor and the middle classes that will be affected the most. Under these circumstances, government should realise the situation and take remedial measures as price hike is playing havoc with budget of the people in the absence of any corresponding increase in salaries and relief for the poor.