Another failed attempt to tame prices

It is disappointing to see that despite the government capping the prices of 29 food items over a week ago, traders are reportedly still selling 26 of those at higher rates. Out of the items, only eggs, Katla fish and onions are being sold at prices set by the Department of Agricultural Marketing. But Sonali chicken, whose price has been fixed at Tk 262 a kg, is being sold at Tk 320-330. Different varieties of pulses, including red lentils, are being sold at Tk 5-35 more than their fixed rates. The prices of cabbage, cauliflower, bean, brinjal, green chilli, tomatoes and pumpkin, despite falling by Tk 5-20 a kg last week, are still sold above the capped prices.

What is the point of setting prices if they are not enforced? According to shopkeepers at different kitchen markets in Dhaka, they cannot run their business if they abide by the price cap. An owner of a grocery store at Karwan Bazar said that government officials were visiting the markets only occasionally, indicating lax monitoring. So, other than fixing some prices, what steps have the government really taken to contain them? And why aren't consumers benefitting from any of them? This price cap strategy clearly doesn't work, and after several failed attempts in the past, the government should have known better. Why does it still do it then? Is it just an eyewash in the face of public outcry? Whatever it is, the truth is that people, especially the poor and fixed-income groups, are struggling to make ends meet due to the unchecked inflation.

Some of the reasons for prices in Bangladesh remaining abnormally high, while going down in other comparable countries, are well-known. Market manipulation by syndicates is one of them. Yet, year after year, the government has failed to identify those involved in these syndicates or make their names public or punish them, perhaps because they are connected to influential quarters. The involvement of middlemen—in the absence of effective supply chain systems—also results in prices shooting up from the point of production to consumption. Extortion during transporting goods is another huge problem which the government should have been able to fix by now. These problems continue to persist, benefitting a few at the expense of ordinary consumers.

The government's initiative to sell some subsidised items via the state-run TCB outlets has not been sufficient enough to bring relief for the poor or make any meaningful dent in regular market prices. Therefore, it is imperative to address the underlying issues that are keeping the market unstable and prices high. People are clearly running out of patience and also the means to afford more government failures.