Top Priority: Controlling Inflation
Published on: January 16, 2024.
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In the midst of a government transition, business syndicates are taking advantage of the situation to increase prices on key commodities. Unfortunately, this sharp price acceleration will further burden consumers who are already struggling with high inflation. The market is controlled by traders and wholesalers, resulting in an unregulated market that benefits these intermediaries rather than farmers or consumers. This unfair situation is not limited to vegetables, as rice prices have also experienced an abnormal hike.
Despite this being the peak harvesting season, the price of all rice varieties in the city market has increased overnight. Additionally, the price of coarse flour (ata) has jumped by Tk 10 per kilogram in just one week. According to a report in the FE, four essential items, including rice, seasonal vegetables, potatoes, and onions, have seen significant price gains. Excuses for these price hikes, such as the Russia-Ukraine war or supply crunch, are irrelevant as there is no shortage of these essentials. This manipulation of the market is simply driven by the business interests.
Unfortunately, this is not the first time that consumers and the government have been held hostage to the machinations of business coteries. While food prices around the world have eased off, consumers in this country have been forced to pay inflated prices for commodities. This time, the intention may be to test the new government’s resolve before it settles down. Once prices are increased, it becomes difficult to bring them back down to their previous levels. This manipulation of the market before Ramadan, when certain essentials are in high demand, is clearly driven by business interests.
The new government’s priority should be to address the issue of galloping inflation. It is crucial for the government to convince business interests to restrain profit-making in order to regain control. Failure to do so may result in the situation spiraling out of control. Addressing this issue is not only important for the government’s reputation and acceptance among the people, but also for the overall economy and social justice. The laissez-faire approach to the economy can wait until businesses mend their ways.
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