The New Nation - Internet Edition

PRICES of rice both at the wholesale and retail markets have started falling as a result of the measures taken by the government and with those panic buying of rice. But the prices are still much higher than they used to be before. Moreover, it is necessary to make sure that the present partial fall of price is sustained and there is no further escalation of the same. Only constant vigil on the part of the government can help keep the prices stable.

Hoarding of rice by the unscrupulous section of traders following rumours and speculations about the stock of rice with the government, increase of export price by a big neighbour and all that led to the price spiral at a meteoric speed last week. Being scared, a section of the people resorted to panic buying giving further impetus to the spiral. Prompt steps taken by the government caused, prices to start subsiding from the beginning of the current week. Announcement of a plan to import 10 lakh tonnes of rice, start of open market sales, sale of greater quantities of foodgrains at BDR outlets at fixed prices, anti-hoarding drives leading to increased supply of rice to the market and arrival of imported rice tamed the galloping prices to some extent.

The wholesale and the retail prices are now showing a downward trend. But the retail prices have not come down proportionate to wholesale prices. Strengthening of the on-going efforts plus steps to optimise the production of Boro paddy are likely to make the prices stable. Adequate stocks of foodgrains is vital to frustrate hoarding and to free consumers from panic. So, the government must build sufficient stocks of rice through imports. The government decision to import 10 lakh metric tonnes will help the process. The anti-hoarding drive must be continued. The rice retailers opined that strict vigilance on the country's largest rice markets in the northern districts need to be maintained. Low import costs can help keep the prices down in the domestic market. So, the government must try to make the import of rice at as low costs as possible. In case of high import costs, subsidies should be given to keep the prices at affordable limits of the average consumers. Distribution of food under test relief and food for works programmes should be geared up. The government's decision to feed another 5.70 lakh families of the vulnerable group along with the 26 lakh families affected by cyclone Sidr would also reduce the pressure on the market.

Latest Government steps proved to be effective in reining over market trends. Necessary regulatory measures should also be extended to control the prices of edible oil, milk and milk products.