Exorbitant Ramadan market

The month of Ramadan has begun and despite the promises of business leaders, prices of almost all food items have increased at different levels.

There is no logical reason for this price hike in a normal economy since there is ample supply of consumer goods in the market.

If the supply is less than the demand, price rises. In present circumstances, there is no shortage of supply that can lead to increased prices.

So what are the possible reasons for the price rise?

Firstly, there is the uncontrolled greed of the traders to acquire extra profits during Ramadan. For instance, the demand for sugar rises quite high during Ramadan. Market insiders say the country’s sugar stock is higher than the demand. There is no shortage in supply. Moreover, sugar prices in the international market have declined. Even so, the price of sugar in the retail market has increased by Tk 5 per kg. It can be assumed, it is the businessmen who have simply increased the price.

The authorities of Dhaka South City Corporation have fixed the price of beef for Tk 450 per kilogram, but the retailers are selling it for Tk 500.

Retailers of imported commodities have not lowered the price of products despite decreased prices in global market. Edible oil and gram or chickpeas are an example. Only the retailers benefit from the lowered prices, not the consumers.

Salt retailers get Tk 10 commission per kg from the salt manufacturers. But they still do not reduce the price at a consumer level.

This is how the traders are controlling the market.

Secondly, the price of agricultural food products has increased three to four times at consumer level, but the producers or farmers are not enjoying the profit.

A farmer sells one kilogram of green chillies for Tk 20 at the Mahasthan market in Bogura. The same chilli is sold for Tk 70 at the Fateh Ali market in the town, only 12 kilometres away from Mahasthan.

Such unusual hike in prices is seen in the price of eggplant, Potol (pointed gourd), snake gourd, okra and cucumber.

The farmers who produce these crops do not get the proportionate profit. In many cases they cannot recover production costs, let alone acquire profits. 

However, the consumers have to buy the same agricultural food products at a very high price. Such imbalance in the market continues almost all year round. It just increases to abnormal levels during Ramadan.

What is to be done?

The marketing officer of the agricultural marketing department in Bogura said, “There have been a lot of discussions at a district level about the difference of prices in the wholesale and retail market. We are looking for ways to control the vegetable retail market.”

To solve this problem, the reasons for this abnormal difference of prices in the wholesale and retail market must first be identified. Much has been said about how the vegetable wholesalers exploit the growers, but there not much is said about the organised racket in the retail markets. 

This needs to be controlled.

Besides, the extortion during the transportation of goods, which increases widely during Ramadan, needs to be halted.

Ruling party persons and law enforcers have been accused of such extortion. This needs to be stopped.

Above all, surveillance of the market has to be stepped up as well.