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Syndicate active to keep commodity prices soaring


Published : 26 Feb 2020 09:16 PM | Updated : 07 Sep 2020 04:27 AM

The prices of rice and several other essential commodities have kept soaring with consumers fearing a fresh leap in the prices during the upcoming Ramadan month which will begin in late April. Market sources and consumer rights groups said the authorities have failed to arrest price spirals as a strong syndicate is active in the market to manipulate the prices by applying unfair tactics.

According to traders, the prices of rice, the staple food in Bangladesh, have increased by Tk 4-5 per kg over the last one week at the retail level. During visits to different retail and wholesale markets in the capital, this correspondent found coarse rice selling at Tk 50 against Tk 46 a week earlier and other varieties at Tk 55-60 against Tk 52-55.

The market sources said prices of sugar are also on rise thanks to alleged manipulation by unscrupulous traders. The commerce and finance ministers, however, said the government has been taking preparations to ensure that the market sees no crisis of any commodity during Ramadan, when prices usually go up.

State-run Trading Corporation of Bangladesh (TCB) has decided to procure 25,000 tonnes of sugar and 30,000 tonnes of refined soybean oil from local suppliers to keep the market stable during Ramadan. The Corporation has also selected two local suppliers through bidding process to buy the products. City Group will supply 25,000 tonnes of sugar while Super Oil Refinery will supply 30,000 tonnes of soybean oil.

Traders said each year paddy supply decreases from January to March, causing price hike of all varieties of rice but from April, when new paddy starts arriving in the market, prices start to become normal. Karwan Bazar kitchen market-based rice trader Yusuf told Bangladesh Post, “Based on the mill gate purchase price and others, we have to sell rice here. Mill owners can say better why rice prices are increasing”.

Visiting the capital’s different rice markets, this correspondent found the allegation of price hike of rice to be genuine. Based on varieties Miniket (normal) rice is selling at Tk 52 to Tk 55 per kilogram (kg) and Miniket (good) rice at Tk 56 to Tk 60, which was Tk 48 to Tk 55 per kg last week, Nazirsail rice is selling at Tk 60 to Tk 62 per kg which was Tk 54 to Tk 58 past week, medium quality Paijam and Lota rice is selling at Tk 42 to Tk 50 per kg which was Tk 40 to Tk 45, Sorna and Iri rice is selling at Tk 32 to Tk 37 per kg.

In this regard, Babubazar Rice Traders Association secretary Nizam Uddin said, “As this is not paddy season, the rice price increase is normal during this time. Less supply against the demand for paddy is increasing the rice price”. “On the other hand, as the old stock is about to finish, the rice price will climb upward till the end of March. If rice price goes up by at least Tk 1 or Tk 2, the wholesale market price climbs up to Tk 5 per kg”, he added.

According to commerce ministry information, after providing export clearance, rice price was increased. From January 31, rice price started soaring again, after adding 15 percent incentive on export rice price. Price may go beyond the general people’s capacity when rice export will start, in this situation, the Food Ministry raised objection to exporting rice. As a result, the commerce ministry is not approving any rice export application.

TCB statistics are also showing the same trend of rice price. In the last one month, the price of this essential went up by five percent. However, food ministry states, there are 13.65 lakh tonnes of rice stored at the government warehouses. On the other hand, within a week’s difference, sugar is selling at Tk 68 to Tk 70 per kg which was Tk 62 to Tk 65 last week. Traders say, as they have to purchase per sugar sack at a higher price from mill gate, they have nothing to do but sell at a higher rate.

TCB data showed that within a month, sugar price increased by 8 percent. Bangladesh Sugar Merchant Association’s vice president Mohammad Ali Bhutto said, “As Ramadan is approaching, the high price of sugar in the international market is affecting the local market. As a result, sugar prices are higher in the country”.

According to sugar traders' information, per ton sugar import price increased by $30 compared to that in the previous week. Consumer Association of Bangladesh (CAB) chief Ghulam Rahman told Bangladesh Post, “To keep the market stable, tripartite coordination among traders, government and consumers is important. If commodity prices in the international market remain constant, and Trading Corporation of Bangladesh (TCB) imports on a large scale, I think the market will remain stable during Ramadan.”

“Unscrupulous business syndicates must be brought under strict punishment so that none of them shows courage to hike the price of essentials ahead of Ramadan”, he added.