High demand, low supply in open markets

Regular OMS rice and flour are being sold near the Shyamoli Club ground in the capital. At 11:00 am on Wednesday, about 80 men and women stood in two lines behind the truck, waiting to buy products. One of the drivers, Shahraj Mia, mentioned that he took two hours off from work that morning. After standing in line for almost an hour, he finally managed to buy two kilogrammes of flour and five kilogrammes of rice.

On Thursday, in front of the Directorate of Food, the Department of Agricultural Marketing was selling 10 types of products, including potatoes, eggs, onions, and vegetables. There, 30 people were lined up on the sidewalk to buy products, but the items were nearly sold out. Supervising officer Sohrab Ali could not confirm whether everyone waiting would receive their purchases.

The same scene was mirrored outside Dhaka. On Thursday afternoon, retired officer Mohammad Kamal returned after standing for an hour in front of a truck selling agricultural products in Chattogram’s Chawkbazar Dhanirpool area. Student Abdul Hamid, housewife Lucky Sheel, Mehera Khatun, and many others left empty-handed from the same location. As many as 30 others, returned from the mobile OMS shop at the Govt Aliya Madrasah ground in Sylhet city. Anwara Begum visited dealer Sadia Enterprises in the Bati Kol area of Mymensingh but returned without any essetials. At Tikapara Point in Rajshahi city, 70 shoppers were queuing when the announcement was made—the stock of rice was over. A similar situation was observed in various selling-points in Barisal, Khulna, and Cumilla.

The products are finished, but people are still standing in line. Prothom Alo journalists have observed similar scenes in different parts of the country. Various ministries are selling products at affordable prices in an effort to provide some relief to low-income individuals amid rising prices of daily commodities. 

However, the government is struggling to meet the needs of the people. The Ministry of Food and the Ministry of Commerce have already initiated the sale of rice, flour, edible oil, and onions. Additionally, the interim government has enlisted the Ministry of Agriculture to sell eggs, potatoes, and vegetables.

The new challenge for the government is to maintain the supply of all these products. To address this, the Ministry of Commerce is holding meetings with relevant parties, as the supply of import-dependent products heavily relies on certain private sector groups. 

Commerce Secretary Salim Uddin met with traders last Tuesday and urged them to stabilise both prices and supply. Previously, the Ministry of Commerce had conducted separate meetings with traders, trade associations, importers, and producers. The commerce secretary noted that the import duty on rice, edible oil, sugar, and eggs has been reduced based on their recommendations.

Salim Uddin told Prothom Alo, "Despite the recommendations of the concerned parties, the duty on a few important products has been reduced through institutional analysis. During Ramadan, there are also plans to lower the import duty on chickpeas and dates. We are now insisting that the opening of letters of credit for imports should be done properly.”

According to data from the Bangladesh Bureau of Statistics (BBS), inflation reached a decade-high of 11.66 per cent in July, 10.49 per cent in August, and 9.92 per cent in September. This figure reflects overall inflation, with food inflation being even higher. While BBS statistics indicate a decline in inflation, the International Monetary Fund (IMF) warns that it is unlikely to drop significantly. Last Tuesday, the IMF projected that this fiscal year’s inflation would stand at 9.7 percent.

Despite the official figures, public frustration over rising prices of daily commodities has been mounting for several weeks. In response, the Directorate of Food, the Department of Agricultural Marketing, and the Trading Corporation of Bangladesh (TCB) are selling daily necessities directly at affordable prices. However, low-income people contend that, while the government's initiative is commendable, it is insufficient to meet demand.

Salim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), identified six reasons for the high inflation: supply shortages, a lack of information on demand and supply, limited market competition and trader manipulation, ineffective monetary and fiscal policies, currency devaluation, and rising fuel prices.

Raihan suggested forming an integrated platform involving all relevant ministries under the leadership of the Ministry of Commerce. He emphasised that, in addition to curbing extortion to control inflation, it is essential to hold businesses accountable. 

He also recommended activating the Competition Commission, warning that if inflation remains unchecked, it could hinder the formulation and implementation of many government reform programs.

Moinul Khan, Chairman of the Bangladesh Trade and Tariff Commission, told Prothom Alo, “We are conducting a study to determine strategies for reducing the prices of daily commodities. After presenting the recommendations of the research to the government, we hope that some effective measures will be taken.”

OMS and food-selling programmes are being implemented through the Directorate of Food. OMS (Open Market Sale) is targeted exclusively at urban poor populations. Rice is sold at Tk 30 per kg for 5 kg, and open flour is priced at Tk 24 per kg for 5 kg. These products are available in the Dhaka metropolis, as well as in four labor-intensive districts: Dhaka, Narayanganj, Gazipur, and Narsingdi. The programme operates in 10 city corporations and all district headquarters and pourashavas across the country, totaling 912 centers, including trucks and shops.

In Dhaka, rice and flour are sold at 70 locations through truck sales. Additionally, there are five truck sales in Sylhet. Due to flooding, OMS rice and flour are being provided as special allocations in 65 upazilas of 11 districts in the Chattogram division and 14 upazilas of 3 districts in the Sylhet division. For the current financial year, 700,000 tonnes of rice and wheat have been allocated for the program.

Beyond urban areas, food-friendly programs are implemented at the union level, benefiting 5 million families. This programme runs for five months: September to November and in March and April. Under this initiative, each family can purchase 30 kg of rice at the rate of Tk 15 per kg, with an allocation of 740,000 tonnes of rice for the current financial year.

The Department of Agricultural Marketing has initiated the sale of 10 agricultural products in packages, including eggs, potatoes, onions, raw papaya, and various types of green vegetables, at affordable prices. 

Launched on 15 October, this programme is named the Agriculture OMS Programme. Initially, it is being implemented through truck sales at 20 locations in the capital, operating from 9:00 am to 2:00 pm. 

Customers can purchase potatoes at Tk 30 per kg, a dozen eggs for Tk 130, onions at Tk 70 per kg, two kg of raw papaya for Tk 20, and five kg of various green vegetables.

At Tokyo Square in Mohammadpur, trucks brought 105 kg of papaya, 180 kg of potatoes, 20 gourds, 1,500 kg of potatoes, 600 kg of onions, and 140 dozen eggs for sale. 

However, the products sold out before all customers could make their purchases, primarily due to a shortage of supply. Approximately 250 buyers attended the sale.

Aminul Haque, a worker from a private company who came to buy agricultural products in front of Tokyo Square, said, "I arrived at 11:30 am and was only able to buy potatoes and onions. I did not get eggs, papaya, or other vegetables.”

The rise in the prices of daily commodities has left people across the country in distress. In both Dhaka and other cities, even middle-class families are standing in line to buy products at affordable prices.

Mozammel Hossain, a dealer, mentioned that initially, each customer could purchase five kilogrammes of rice and flour. However, by the end of the day, customers were only able to buy either rice or flour.

Prothom Alo visited six OMS and TCB centers in Rangpur on Wednesday morning. 

A woman named Sharmin Akhter expressed, "If we could get more OMS rice instead of flour, it would benefit us because our family needs more rice."

Tutu Mia, who was waiting in line at Alia Madrasah ground in Sylhet, said he works as a night guard. He left home at 7:30 am and found 50 people already waiting in front of him.

At 11:30 am on Wednesday, a long queue of individuals—from the poor to the middle class—could be seen lining the sidewalk next to Mylapota Ahsanullah College in Khulna.

The Trading Corporation of Bangladesh (TCB) is selling edible oil, lentils, and onions to 10 million cardholders across the country. 

However, onion sales have been temporarily suspended. Each family can purchase two liters of oil and two kg of lentils once a month. 

The corporation has also begun selling rice, and individuals without a family card can also take advantage of this opportunity.

Sales began yesterday at 50 locations in Dhaka and 20 locations in Chittagong through mobile trucks. Consumers can buy up to two liters of edible oil at Tk 100 per liter, five kg of rice at Tk 30 per kg, and two kg of lentils at Tk 60 per kg.

Labour and Employment Adviser Asif Mahmud Sajib Bhuiyan inaugurated this programme in the Tejgaon industrial area of the capital. He emphasised the need to launch an 'Alternative Agriculture Market' to curb market syndicates.

[Staff correspondents and Correspondents of Dhaka, Chattogram, Rajshahi, Khulna, Barisal, Sylhet, Mymensingh, Rangpur, Cumilla helped filing this report)