Dishonest traders manipulate prices

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The image of the government will be tarnished badly if the current rising trend in prices of essential commodities including rice, flour and edible oil continues unabated, warned an intelligence report of the government.

The malpractice of a group of unscrupulous businessmen is mainly responsible for the abnormal price hike of essentials in the local market, the report added.

However, leading businessmen brushed aside the allegation and pointed to international markets for the worsening market situation.

'The prices of rice, wheat, garlic, pepper and edible oil have increased in recent times. The livelihood of lower income people is being affected following the price hike of essential commodities. The image of the government will be tarnished if the current price hike continues in future,' the intelligence report said.

The report sent to the Prime Minister's Office (PMO), has blamed the businessmen for price manipulation. It said a group of dishonest traders and importers raised the prices of essentials citing the price hike in international markets.

'The importing formalities of essential goods take at least three to four months. The foreign essential goods now being traded in the local markets were imported into the country about four to five months back. So, the prices of those goods have no reason to go up in local markets at current international rates,' elaborated the intelligence report.

The report said the market monitoring activities of Ministry of Commerce (MoC), which have been visible and active during the month of last Ramadan, is not active now. Three monitoring teams of the ministry to oversee the prices of essentials have been abolished in recently leading to price manipulation in the market, the report added.

However, the officials in the MoC said the monitoring teams have been increased to five from three rather than their abolition. The monitoring activities will be strengthened further with empowering state trading agency-Trading Corporation of Bangladesh (TCB)- for market intervention.

The intelligence report said the prices of coarse rice, flour (atta), Soybean oil, onion and garlic have increased by 25 to 30 per cent compared to the prices of the food commodities during the month of last Ramadan.

According to the price information of TCB on October 11, the price of coarse rice has risen by 38 per cent, atta 50 per cent, Soybean 21.09 per cent, Palm oil 38.02 per cent and the price of garlic in retail markets has risen by 85 per cent compared to the price levels a year ago.

Importers and local big traders said the government is largely responsible for the situation as it refrained from taking any measure to import food items through TCB after Russia and Ukraine had banned export of wheat about four to five months back.

Mostafa Kamal, Chairman, Meghna Group of Industries, said the prices of Palm oil and Soybean have increased at least by $70 to $80 per tonne in international markets last week following a report of the US Department of Agriculture was released . The US report forecast price hike of food items further following lower production in global food exporting countries.

He advised the government, particularly MoC and TCB to subscribe Reuters and Bloomberg to remain updated on latest prices of essentials in international markets.

Another importer said the importers generally fix rates averaging the prices of imported food items brought earlier and the current value as a business strategy.