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Oct 24, 2024

Govt must ease the burden of prices | The Daily Star

We remain concerned about the state of the market as prices of many essential food items are still beyond the reach of lower-income families, despite recent measures by the government. While the price

We remain concerned about the state of the market as prices of many essential food items are still beyond the reach of lower-income families, despite recent measures by the government. While the price of eggs has decreased in the past week after having gone through the roof earlier, the cost of four other key items—rice, oil, sugar, and onions—has risen. Despite the government reducing import tariffs on these goods to lower prices, consumers have yet to benefit from it, as these imports have not reached the market. But can tariff reduction alone stabilise the market? Experts argue otherwise. What's needed is a comprehensive plan covering all aspects of the supply chain to lower the costs of these daily necessities.

It goes without saying that the government's failure to control prices is hitting low- and fixed-income households the hardest, making it increasingly difficult for them to access proper meals, especially protein. For instance, a woman named Shahinur, who has four children and whose husband drives a battery-operated rickshaw, recently told Prothom Alo that her family mostly survives on rice and lentils. Previously, she could afford to give her younger children milk four days a week, but that is no longer possible. The rising cost of rice has been particularly distressing. Just three months ago, the price of BR-28 rice was Tk 54 per kg; now it stands at Tk 65 (as of October 22). Prices for other rice varieties also remain high, despite sufficient stock in the market, as our reporter observed during visits to various kitchen markets in the city.

The causes of the current market instability are not unknown. Illegal hoarding continues to play a role, as does the disruption of supply due to recent floods. Furthermore, powerful syndicates appear to be manipulating the supply chain of different items. The government, therefore, must address all these issues with equal importance. Its first priority should be ensuring sufficient supply to meet demand. At the same time, market monitoring must be enhanced to prevent businesses from engaging in price manipulation. Breaking the monopoly of large companies that control the import of essential goods is another necessary step. Additionally, the government should further expand the Open Market Sales (OMS) programme to better support the poor.

Given how persistent the price problem has been, the interim government must give utmost importance to controlling the market to provide relief to the people struggling with soaring prices of essentials.