07/07/2012 (Financial Express) - Prices are on the rise prior to Ramadan. Common people are suffering because of the rise in prices of 10 essential commodities. Gram now sells at Tk 90/95 per kg. A few days back it sold at Tk 65/70. The price of one kg of gram has increased by Tk 25 per kg in the last few days. Gram supply is increasing and its price is also increasing. In the same fashion, prices of all varieties of pulses have gone up. In a week's time, price of pulses has increased by Tk 5/10 per kg. Prices of edible oil, onion, potato and spices have also gone high. Currently, broiler chicken is selling at Tk 175/180 per kg, and egg at Tk 110/120 per dozen. Side by side prices of vegetables, fish and meat are also high. Bulk of income of the common people is spent on daily necessities. Therefore, they find it difficult to pay for house rent, education, and medical and transport charges.

According to the Trading Corporation of Bangladesh (TCB), price of gram has gone up to Tk 75/80 from Tk 60/70 in a year. Prices of potato and other items have also doubled. Prices of other items have also increased in a similar manner. If the cost of living increases, consumer price index goes up. In the month of May overall price index was 268.13. Index of food items was 298.93.When the government came to power in 2008/2009 overall price index was 206.43 Food index was 221.64 per cent. In three and half years, overall index rose by 62.50 per cent. Food index rose by 72.75 per cent. There is a feeling that prices may rise again in Ramadan. Many agencies have submitted report to the government. They have indicated a rising tendency of prices.

In the month of Ramadan, there is excess demand for gram, sugar, soyabean oil, palm oil, pulses, dates, onion and potato. Prices of these items have increased at different rates. The price of salt has doubled. From March to May this year 60,000 tons of grams have been imported. It was 38,000 tons in the same period last year. It appears that price increases though there is no dearth of supply.

Price of soyabean and palm oil is on the increase. Loose soybean oil is selling at Tk 118/120 per litre. Its price was Tk 107/110 last year. Suppliers suddenly reduce the supply and thereby increase the price. Palm oil price has also increased. More pulses are used during Ramadan. Their prices are increasing. People are cutting down on essential items. Last week the price of green chillies was Tk 200 per 5kg. Green chillis are now selling at Tk350/360 per 5 kg. Price of date has increased by Tk 20 to Tk3 0 per kg. Tomato price has also increased.

President of Kawran Bazar Banik Samity admitted that compared to last Ramadan, the prices of edible oil, gram, onion, green chillies and other items have increased on the eve of Sab-e-Barat and Ramadan. During last Ramadan ata was selling at Tk 22/30 but it is now selling at Tk 30/32 per kg. Soyabean oil per litre is selling at Tk122/126 as against Tk110/112 in last Ramadan. Masur dal is currently selling at Tk 95/110 as against Tk 72/85 last season. Garlic price is now Tk 80/95 compared to Tk 50/75 during last Ramadan. Recent floods are likely to push prices further up. The government should be vigilant against price hike.

Traders have agreed with the commerce secretary to make 10 per cent profit. But this is not being maintained. The commerce secretary is of the view that commodity supply was satisfactory and there was no reason for prices to increase in Ramadan. According to TCB, dry chillies ,turmeric, ginger, garlic and dates are selling at higher prices. Monitoring teams are not visible in the market.

Traders are engaged in increasing prices as there is no monitoring in the market. They say that vegetable prices have increased due to rain. Prices of green chillies have increased by 50 per cent. Prices have started increasing soon after the government announcement of profit margin. There is no justification for such announcement as there is no mechanism for control.

The government is planning to take measures to keep prices within limit. Various departments and agencies have been asked to cooperate with the government. Ministry of commerce has given directive not to make profit beyond 10 per cent. But there is doubt about its effectiveness.

The ministry of commerce will keep contact with the importers in order to ensure supply of imported items. Anti-adulteration campaign will be strengthened. Bangladesh Standard and Testing Institution (BSTI) and consumer rights protection department have been given responsibility for this operation. List of dealers will be sent to the deputy commissioners and upazila nirbahi officers. Law enforcing agencies will take measures for stopping toll collection during movement and sale of goods.

TCB itself is building stocks for Ramadan. The Ministry of Commerce will field 14 monitoring teams to confront the traders who may indulge in price manipulation. Ports will remain alert for clearance of daily necessities. Intelligence agencies will see that artificial crisis is not created by hoarders.

It is feared that crisis may be created in the supply of salt, eggs and broiler chicken. Lowering of price of edible oil in international market is having no impact in the local market. The Ministry of Commerce holds the view that prices will not increase during Ramadan because supply of commodities is satisfactory.

The government appears to have made all preparations for keeping prices under control during the holy month of Ramadan. The Prime Minister's Office (PMO), commerce ministry, minstry of industries, ministry of public administration and ministry of home affairs have been given responsibility according to a plan. TCB sells different items at fair price, but with limited coverage area and can make little impact in the market.

Experience shows that the government measures for controlling prices do not bear fruit because no action is taken against the unscrupulous traders. People expect that necessary steps will be taken to implement different measures. Let the government show some examples of compliance. If traders do not comply, they should not go unpunished. The government should not be reluctant to take action them.