No intervention yet to contain Ramadan market: Experts
Staff Reporter :
Keeping under control the prices of essential commodities during the upcoming Ramadan will be a big challenge for the government as the prices of commodities, including rice, dates, flour, lentils and sugar start spiking at the beginning of the year.
Although the holy month for the Muslim community is knocking at the door, a little initiative has been seen to rein in the prices.
Economists have said the steps that can curb the crazy horse of the market are not seen at the moment and there is no way to be optimistic.
They further said that controlling the commodity prices would not be easy due to three reasons.
Firstly, higher production and transport costs for increased gas, electricity and diesel prices. Secondly, competition in the market needs to be increased by increasing imports. But due to dollar shortage, traders are not able to open letters of credit (LC) easily. The cost has also increased due to the increased value of the dollar.
Thirdly, certain products have high rates of customs duty and it is not easy for the government to give concessions because of a heavy revenue deficit.
Along with these three, the existing market syndicates are making the situation even more miserable, the economists added.
Amidst the fervour of buying and selling, a wave of joy sweeps through the marketplace during this one-month period. Comparatively, the demand for edible oil, dates, lentils, onions, pulses, and sugar is extensive than any other time of the year.
Unscrupulous businessmen exploit this demand by forming syndicates and artificially inflating prices, causing distress to the general public.
In preparation for Ramadan, there has been an increase in the import of dates, onions, lentils, spices, and mustard seeds. According to available data, 6,016 tonnes of dates have been imported through Chattagram port in December alone.
In the first six months of the current fiscal year (until December), Bangladesh has imported 2,682 tonnes of onions. Most of the imported onions come from India, with additional imports from Myanmar, Egypt, Turkey, and China.
Besides, imports of chickpeas, a crucial item for Iftar, have doubled in the first six months period as the country has already imported 13,169 tonnes during the time.
The imports of other key cooking items have also increased in recent times, the data showed.
According to the latest report from the Bangladesh Bureau of Statistics (BSS), overall food inflation stood at 9.58 per cent in December 2023.
This rate was 10.76 per cent in November and had peaked at 12.56 per cent in October, marking the highest in almost 12 years.
People of limited income were under severe pressure due to inflation in 2023 and any further increase in the prices will lead them towards a more vulnerable economic situation.
Dr Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM), believes that the actual inflation is higher than what the BBS reports.
“The lower-income population, who predominantly purchase essential goods, experiences a higher inflationary impact as the prices of these items tend to rise more,” he said.
