The New Nation - Internet Edition

BSS, Dhaka

Chief of Army Staff General Moeen U Ahmed yesterday said, the prices of essentials have shot up to such a high level that it has been very difficult for the people to tolerate.

The tendencies of some consumers who purchase huge amount of commodities create panic in the market and rise prices of essentials, he said adding that trends of stockholding commodities by importers, wholesalers and retailers are also pushing up prices.

The hike in prices of essential items in the global market is also another factor that shot up the prices in the country, General Moeen said referring the figures that price of rice in the international market has gone up to US$ 500 per metric tonne (MT) in March 2008 from US$ 260 per MT.

The price of wheat went up to US$ 399 per MT this year from US$ 240 last year, while palm oil to US$ 1246 from US$ 565, sugar to US$ 396 from US$ 299, powder milk to US$ 5242 from US$ 3000and soyabean oil to US$ 1503from US$ 620.

The government has undertaken various measures to keep prices under control, he added.

General Moeen said, the production of crops during last year was hampered due to two floods and cyclone Sidr, and for this there was a large shortage of crops.

Crops worth 20 lakh MTs were damaged by floods and cyclone last year. A total of 8,71,000 MTs of crops were damaged due to Sidr during November 15 last year causing a loss of US$ 3 billion, he added.

Using crops in producing bio fuel is another reason for shortage of crops globally that adds to rise in prices of essentials he said, about one-third of maize produced globally are used for making bio fuel.

Rise in prices of fuel in the international market is also another cause of hike in prices, as it raises the cost of transportation of commodities, General Moeen said.

Referring his visit to city markets he said, although prices were higher, there was sufficient items in the market. The panic creates when some consumers buy a large amounts, he added.

"Hike of prices is a problem and this has to be settled with the cooperation of all," General Moeen said adding that diversification of food habits could help a lot in taming the hike of rice prices.

Referring to huge production of potato, that amounts to 80 lakh metric tons, he said, there is a 20 lakh tons capacity of storing potatoes and there is a risk that 60 lakh tones of potato will rot unless these are utilised timely and properly.

He said, if people take more potatoes with rice in their menu, then these could reduce pressure on rice and would be cost effective for the people. Side by side, he emphasised on processing of potatoes and value addition for exporting that could fetch large amounts of foreign exchange.