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Price hike of essentials : searching the causes September 15, 2007


In a symposium recently held Dr. Hussain Zillur Rahman while presenting his research paper ‘Market and Price of Commodities, concluded that long supply chain and low productivity are mainly responsible for high prices of the essentials in our country.(Protom Alo, 14/9/07)

Finance Adviser Dr. Mirja Azizul Hoque who was present in the seminar as the chief guest agreed that the low productivity as one of the main reasons of the price hike. Because of low production, foods are required to be procured from the international market by higher prices.

Dr. Zillur Rahman does not like to accept the presence of syndicate as a cause of price rise in agricultural products. But Finance adviser told that difference of prices of about 20% between wholesale and retail price are reported.

Economist Dr. Wahiduddin Mahmood agreed that the long chain of supply as a cause of price hike but told that lack of employment in other sectors also contributes lengthening of the supply chain.

Finance adviser not in favour of much tax exemption as it may have adverse effect on the price of the commodities. He also added that subsidies are present in Agricultural sector and there is an upper limit for the interest of the agricultural loan.

But to the ordinary citizen it is not clear how only two factors cited in the paper are blamed for the present rise of price of the essentials, when these two factors are virtually present from long before.

And when our market especially the import is controlled by a few, it is easy to control the market by them.

How one explain the tendency of our big businessmen for hoarding the essentials like wheat, rice and sugar, in their godowns to the level of being non edible and the joint forces had to seize and destroy the items.

One may say that these attempts by the joint forces may disturb the equilibrium of the market and destabilize the prices but one cannot ignore the ‘human’ factors which are working behind the price hike.

An ordinary citizen


1. preeti bhardwaj - August 13, 2010

only main points should be located

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