Combatting Syndication: Strengthening market competition in Bangladesh

The specter of syndication looms large over consumers in Bangladesh, manifesting in the relentless surge of prices for essential commodities. Last December’s abrupt spike in onion prices stands out as a stark reminder, fueled by traders exploiting the vacuum left by India’s export ban. Despite fleeting governmental interventions aimed at price stabilization, concerns persist about collusive practices dictating costs across staples like potatoes, chicken, and edible oil.
Analysts trace these erratic price fluctuations to the oligopolistic stronghold within the import sector, where a handful of key players exert dominance amid the guise of a multitude of traders. Ghulam Rahman, president of the Consumers Association of Bangladesh, underscores the diminishing competitive arena, which sidelines smaller traders and curtails consumer choices.
Experts unanimously advocate for robust regulatory measures to thwart anti-competitive maneuvers. Selim Raihan from the University of Dhaka castigates the Bangladesh Competition Commission’s (BCC) limited authority and alleges collusion between businesses and government entities, hampering effective oversight.
However, economists counter by highlighting technological advancements that have ushered in cost efficiencies, ostensibly benefiting consumers through lower prices. They refute claims of widespread collusion, pointing to market dynamism and the influx of new entrants. Despite discordance regarding the extent of collusion, there is unanimity on the imperative for regulatory overhaul.
Strengthening competition oversight and ensuring market transparency emerge as the linchpins in fostering a fair and competitive trading landscape, with tangible benefits cascading down to consumers and the broader economy. Allegations are there that just four to five businesses import significant quantities of essential products, although documents show more than 50 traders are operating in the market.
As Bangladesh navigates the complexities of its market dynamics, fortifying regulatory frameworks becomes an imperative step towards safeguarding consumer interests and nurturing a vibrant economic ecosystem. The time for action is now, and concerted efforts from policymakers, regulators, and industry stakeholders are indispensable in combatting syndication and reinvigorating market competition for the collective prosperity of the nation.