The New Nation - Internet Edition

BUSINESS REPORT

The Dhaka Chamber of Commerce and Industry (DCCI) organised a seminar on 'Price hike and Poverty Alleviation--Budget 2008-09' in cooperation with Bangladesh Economic Association (BEA) and Oxfam International at DCCI Auditorium on July 5.

Finance and Planning Adviser Dr AB Mirza Md Azizul Islam was the chief guest and Bangladesh Economic Association (BEA) President Dr Qazi Kholiquzzaman Ahmad moderated the seminar while and DCCI President Hossain Khaled was in the chair.

Finance and Planning Adviser Dr AB Mirza Md Azizul Islam said it was true that food inflation had significantly affected the life of the common people. In December 2007 the inflation reached 11.6 per cent on a point-to-point basis.

'But we should consider the inflation in comparison to our neighboring countries and international markets," he said.

The Finance Adviser said the government had taken a lot of significant initiatives including short-, medium- and long-term measures to curb inflation.

The short-term initiatives are: Dal-Bhat programme of BDR, open market sale of food grain at subsidised price, withdrawal of custom duty on import of food grains and edible oil increasing the amounts of food grains import lowering of interest rate against import credit of food grains regular monitoring of markets and fixation of maximum retail price for edible oil.

Medium terms measure are: increase of production and distribution of food grains through creation of wholesale markets in various place including Dhaka and introducing Consumers Right Protection Ordinance.

The Finance Adviser hopes these initiatives would help control price hike and the average inflation would come down to 9 percent in FY 2008-09.

Dr Islam added that the government was trying its best to develop every sector of the country. 'But we need collective efforts to achieve our targets. Our private sector plays a great role in economic development. So private sector should come forward. Private sector and government may work together for socio-economic development of the country,' he suggested.

Dr Qazi Kholiquzzaman Ahmad said, "The people of the country are now in serious problem for continuous price-hike of essentials and we have to take time-bound measures to control the situation.

There is no chance for anybody to be dogmatic to a particular policy of poverty alleviation. Besides, the frequent natural disasters like flood, cyclone, Sidr are gradually increasing the sufferings of people while the price hike continues. We do our best to help the victims when struck by any disaster, but we can do better if we act before any disaster strikes us by taking necessary preventive measures."

Terming the present price hike of essential commodities as 'Silent Tsunami,' DCCI President Hossain Khaled said, "We should control the price hike by all means."

He informed that a recent statistics showed 83 per cent increase in global food price over the last three years. This has been causing serious threat to the rural and urban households who are not food buyers.

He also mentioned that 40 per cent of families in Bangladesh are spending more than 70 per cent of their income on food.

The DCCI President also suggested a few measures to reduce the hardship of the common people, like implementing the social protection measures of the government, establish cold storages in necessary areas to stop wastage of post-harvest crops etc.

He also called for interference of Army, BDR and RAB to help reduce the price hike.

Dr M Kabir Hasan, professor of University of New Orleans, USA and Dr Uttam Dev, CPD Research Fellow gave presentations on budget and related issues.

Among others, DCCI Vice-President Khandaker Shahidul Islam and Director MS Shekil Chowdhury took part in the discussion.