Market mechanism not working: Prices continue to soar

The prices of essential commodities showed an upward trend in the city’s kitchen markets yesterday defying ongoing market monitoring and belying commitment by the government and businessmen to contain the price spiral during the month of Ramzan.
The continued price escalations of sugar, lentil, garlic and ginger proved the failure of market mechanism by the government in controlling the price hike of daily necessities.
Sufficient stock of sugar, withdrawal of tariffs and import duties and sugar refiners commitment to the Commerce Minister to sell sugar to the wholesalers and dealers of the Trading Corporation of Bangladesh (TCB) at a mill gate rate from Thursday have failed to bring down its price due to alleged price manipulation by unscrupulous businessmen.
Per kg of sugar was sold between Tk 48 and Tk 50 yesterday in the retail markets though it was supposed to be sold at Tk 42.
The sugar refiners association at a meeting with the Commerce Minister promised to supply sugar to the wholesalers and 216 appointed dealers of TCB in the city at a rate of Tk 39 per kg from Thursday.
As per the decision the TCB will buy one tone of sugar at Tk 39,000 from the sugar refiners.
It was agreed that the sugar refiners will sell sugar at Tk 39 per kg to the wholesalers and TCB dealers and they would sell it to the retailers at Tk 40 and the retailers could sell it to the consumers at Tk 42 per kg.
“Sugar price is yet to come down to a tolerable level,” Amir Hossain, a private service holder told the New Nation at Katpan Bazar yesterday.
Market monitoring by the officials of the concerned ministry, compulsory display of price charts at the wholesale and retail shops, strong commitment of businessmen with the Commerce Minister to make least profit and sufficient stock of commodities in the markets have so far failed to bring any effective results in controlling the market price, according to market experts.
They suggested government to take ‘severe action’ against the wholesalers and retailers, if any of them, found involved in ‘sugar price manipulation’. The price of lentil has shot up further to Tk 7 to Tk 8 per kg in the city’s markets. Per kg of local variety of lentil was sold between Tk 115 and Tk 120 while the imported ones was sold between Tk 106 and Tk 108 which was sold at Tk 112 and 108 and Tk 90 to Tk 100 respectively in the past few weeks.
Though the prices of vegetables have declined but it is still maintaining a high trend in the kitchen markets. Garlic and ginger were selling at Tk 75 to Tk 80 per kg respectively.
Per kg of soybean charged at Tk 80, super between Tk 70 and Tk 72 and palm oil at Tk 68 in the retail markets yesterday. Five litre can of Rupchanda soybean oil was sold at Tk 425, Teer soybean oil at Tk 405 and Fresh at Tk 405.
Per kg of gram was sold between Tk 52 to Tk 55, green chilli was sold between Tk 60 and Tk 80 per kg, potato at 28 to Tk 30 and brinjal at Tk 40 to Tk 65. Beef was sold between Tk 220 and Tk 230 per kg. Per hali (four of each) was sold between Tk 26 and Tk 30. Per kg of broiler meat was sold at Tk 110 while lair was sold at Tk 115.
Coarse variety of rice was sold between 20 and Tk 22 per kg while BR-28 was sold between Tk 25 and Tk 26, Minicate between Tk 30 and Tk 32 and Nazirshail depending on their quality was between Tk 38 and Tk 40 yesterday.

Courtesy of The New Narion