The government can fix prices of essentials if it wants. For this, an accurate estimate of expenditure of commodities of all phases from import to processing has to be taken into consideration. If the prices of commodities are fixed without estimating the accurate expenditure, it could impact the supply chain.
Since the start of the Russia-Ukraine war, there is a crisis going on all over the world. We are not out of this. The exchange rate of dollar has increased although the prices of commodities have decreased in the international market. As a result, the expenditure has increased. Now the price of dollar is Tk 95 fixed by Bangladesh Bank.
However, we have to pay Tk 108 against a dollar to import commodities. So if exchange rate of dollar is estimated at Tk 95 while fixing the prices of commodities, that will not depict the picture of expenditure.
The expenditure has increased in phases from importing commodities from the international market and taking those to the factory or warehouse and marketing after production. The daily essentials including soyabean, palm oil, sugar and wheat are marketed after processing. With prices of these commodities in the international market, there are separate expenditures including transport, production and marketing.
So while fixing the prices of commodities, if only the exchange rate of commodities in the international market is taken into consideration, the estimation of expenditure would not be correct one. Moreover, there is high and low expenditure in case of production. For example, if a factory is operated at full capacity, the production cost will be less while if the factory is operated less than its capacity, the production cost will go up. Currently, the factories are not being operated at full capacity due to the crisis of gas and power. As a result, the production cost has increased. The matter should be taken into consideration.
Now any information can be received very easily. Anyone can import. Controlling system is mainly conflicting in the free market economy. So attention must be paid so that prices of commodities are fixed in line with the accurate expenditures of the products.
The government will take steps if anyone manipulates the prices of essentials. And we, too, want that. I think nobody have a different opinion on it. However, the businessmen should not be threatened. As the supply chain may face disruption, the government has to pay attention so that the supply of commodities are not hampered.
*Mostafa Kamal is chairman of Meghna Group of Industries.