The New Nation - Internet Edition

Price of rice has been increasing day by day. This has been a regular feature of the market in the country. The consequence of this price spiral has been devastating for people of low and fixed income groups. These people spend more than 60 percent of their income for food. They find it extremely difficult to maintain their monthly family budget. The above percentage is likely to go up further making life more unbearable for them. The long drawn inflation and food crisis have aggravated poverty situation in the country pushing the much expected poverty reduction goal further back.

A number of factors were active to take prices high. Floods and cyclone, crop failure, dwindling food grain stock, fuel price hike in the international market and food crisis in a number of countries were instrumental in the volatility of the internal market. With the increase in supply of rice following the boro harvest, the price was supposed to come down. But the reality is the other way round. It is an ominous indication for the future.

Monopoly control of the market by syndicates of a handful of big dishonest traders is responsible for the present rise of prices. Though there is no shortage of food grains at present, this unholy coterie is adamant to make extra profit. There is no visible administrative action to monitor the market mechanism. Regular monitoring and strict control of the rice trade should be continued. The government must give serious thought to immediately introducing rationing of rice and other essential items at subsidised rates to mitigate the sufferings of the people.

Causes of market volatility should be identified and solved in right earnest. Sales of rice at fixed price should be reintroduced. Without these measures, the result in terms of poverty alleviation, health and nutrition status of the poor will simply be disastrous.

Ariful Huq

Dhaka