Politics and price of essentials July 25, 2007Posted by bdoza in BANGLADESH, ECONOMY, POLITICS.
Tags: Price of essentials, psychology of a nation
The price of essentials is not stable yet. It is rising day by day. The life of the low income and middle income group is affected much because of the rising trend of the price of the essential.
To decrease the agonye of the common people Government has open up chain of Fixed Priced shops by the BDR which also has little impact on the price of the commodities in the general market.
Government was blaming the ‘syndicate’ of businessmen for artificial increase of the price.They tried to identify the responsibles and to encourage the other businessmen to take initiative to overcome the situtaion.
Experts are saying that the drive of the CG against the importers in the early months discouraged the importers and businessmen. The drive was made for illegally holding rotten foods and grains in their godowns, many staffs and executive of different companies were arrested then.
Later the CG tried to ensure the businessmen not to take any drastic action against them. But the response was not satisfactory for long time.
Experts also blame the uprooting of the temporary hats and bazaars by the CG in its drive to clean the illegal temporary structures. That may disrupt the distribution chain of supply of the different food items in the country. The CG didn’t continue the cleansing program further.
In the last budget in June 2007, the Finance Adviser withdrew taxes from the import of essential items and tried to give support to our farmers in many ways.
Interestingly, the price of the items from which the tax was exempted, didn’t go down even after the budget. The Finance Adviser put the question to the business leader also. In response, the business leaders also demanded punishment to the wrongdoers.
It is also found that prices of the local commodities at the production level are low but increase many fold at cities and towns at the consumer end. Authority identified this as the maneuver of the middlemen and is trying to address.
Government is also increasing the number of the wholesale markets and retail markets in the capital and other parts of the country.
To increase the supply and to decrease the price of the Hilsha fish in the market, Government banned the import of Hilsha but with no effect on the market. Hilshas are being smuggled out of the country by different routes.
Government’s most recent move is to engage RAB to monitor the market.
But politics is also playing a part in the instability of the prices of essential commodities in the market.