Govt’s IMF-driven policies push up prices of essentials

Staff Reporter :
Prices of daily essentials reach beyond the capacity to buy for the common people regularly due to the government’s steps to increase the prices of gas and electricity to fulfill the prescriptions of International Monetary Fund (IMF).
On January 30, the IMF approved $4.7 billion loans for Bangladesh with a set of conditions including the reduction of subsidies in gas and electricity, fertilizer, seeds and agricultural inputs, which are supplied to the marginalized farmers to survive.
Following such steps for meeting the IMF loans, the prices of daily commodities have been increased multiple times. The experts said that the price hike of fuel and electricity prices could have been avoided. But the poor and middle-income groups are finding it increasingly difficult to purchase essential items, with beef and other meats becoming a dream for the poor.
The prices of fish, which people have been diverting to meet their protein consumption, have also becoming out of reach. The production cost of vegetables has increased as the irrigation and fertilizer costs have gone up.
“I earn Tk 35,000 per month from a private company. I have a family of four members. I need to spend Tk 20,000 for house rent and other expenditure including children’s education. After it, I have left only Tk 10,000 for food cost and medicine cost. Sometimes I have to take loan some money from others. How long it will go,” Abdul Mazid living in Kazipara in the capital told the New Nation on Saturday.
The business community has warned that prices of daily essentials will increase further if traders and businessmen cannot open letter of credits (LCs) to import raw materials.
The production cost for poultry and livestock farmers has also increased as food prices have risen.
The fodder businessmen said that it has become very difficult for them to survive as they are failing to run their factories due to shortage of raw materials like maize and other items as they are failing to open LCs.
“I have two factories in Gazipur and Bogura to produce fodders for poultry and animals. The prices of raw materials are high now as we are failing to open LCs. As a result the prices of fodders are on the rise. It naturally affects the famers for egg and meat production,” Krishna Kumar, a fodder businessman, told the New Nation.
“If I cannot open LCs, my factories will shutdown. I don’t know what to do now,” he said.
With the month of Ramzan, religiously most significant month for the Muslim community, approaching, the prices of daily commodities needed for fasting have already been doubled, making it difficult for low-income families.
People are crying out for the reduction of the cost of daily essentials, and the government’s TCB products initiative has been criticised for being meager compared to growing demands.
There are also allegations of corruption, nepotism, and mismanagement in the distribution of TCB products, resulting in the real beneficiaries’ deprivation.
The government has blamed the Ukraine war and global economic crisis for the current situation, but experts and people are urging them to take immediate action to reduce the prices of daily essentials.
The low-income group is struggling to survive, with many compromising on their food intake to make ends meet.
Amid such a situation, the low income group of people said their salaries or income has not been increased, but the prices of daily essentials are going out of their reach. They are now compromising with the food items to survive. But people don’t know when the situation will improve.
People are calling for urgent redress and relief from the government, without which the situation is only going to worsen.