The New Nation - Internet Edition

STRONG efforts were made during the month of Ramzan to keep prices of essentials under some degree of control. The BDR operated many markets and sold goods in them at substantially reduced prices. Besides, the police and the RAB were deployed for market watch. Unjustified sales of goods at exorbitant prices were sought to be controlled by them both at the retail and wholesale levels. Some retailers and wholesalers were also arrested at that time. Needless to say, these actions had notable effects in keeping prices stable or at least within reasonable bounds during the Ramzan period.

But the relative stability in the price situation seen during the holy month and the Eid, appears to have fully disappeared now. Prices of essentials and daily consumption items are shooting up again. The prices were already at high levels before the Eid. Now, the fresh spate of price rises is making the life of the common man miserable. The price of at a (flour) and even that of the common varieties of rice have leaped up by 80 per cent and 25 per cent. Similar upswings are seen in the prices of cooking oil, milk powder and other kitchen items. The poor and the middle class people are facing great torments and, in many cases, they have to reduce consumption. The purchasing power of the poor has been further strained.

The government must take up a fresh plan to meet the basic needs of people. It cannot engage in only a temporary intervention in the market while keeping a hands-off policy for the rest of the year. Government's intervention in the market under the present circumstances must be a continuing affair throughout the year. The BDR markets should be fully operated. The Trading Corporation of Bangladesh (TCB) should play a similar role throughout the year of procuring essential products and then selling them through many outlets to people. The existing size of the foreign currency reserve should help subsidise the distribution of essentials through imports. The subsidies will be heavy but there is hardly a choice under the present circumstances. Making available essentials to people at affordable prices will mean great relief for them. On the other hand, government's regular presence in the market will create strong pressure on unethical operators in the privately run markets to sell goods at reasonable prices.

Meanwhile, the government should embark on a crash programme to facilitate and motivate farmers for much increased production of essential items, particularly the kitchen items. The growing import dependency for such items and their higher prices, have made the marketing of these goods at low prices an impossibility. From foodgrains to all other edibles, the government should lose no time to encourage their production in the country to the optimum level. This is necessary for food security in the country as well as to hedge people from the soaring costs of imported foods.