Stop market manipulation, ensure fair competition

Bangladesh has been in the grip of persistently high inflation for years with consequent severe hardship for low- and middle-income families. Although the interim government managed to bring the inflation rate down to an average 8.9 per cent in 2025 from the double-digit levels in 2024, the prices of essential commodities have remained volatile. A tight monetary policy has been in place for three consecutive years and the dollar has largely been stable against the local currency taka, and yet nothing has resulted in a tangible relief for ordinary people. Indeed, a recent report by the United Nations has found that Bangladesh is now facing one of the most severe food and inflation crises in the region. The crisis places the country at the bottom of the list among seven South Asian nations.

Now, with the holy month of Ramadan approaching, prices of essentials have begun to rise again, raising concerns for millions preparing for the month of fasting. Notably, the demand by local refiners for an increase in edible oil prices, despite forecasts of a decline in international prices, can only evoke profound shock and outrage.  In a letter sent to the Ministry of Commerce, the Bangladesh Vegetable Oil Refiners' and Vanaspati Manufacturers' Association reportedly warned that the domestic supply of edible oil would be disrupted without a price hike. This has become a familiar tactic. Over the past year, refiners have pushed through multiple price increases, most recently in December by creating an artificial shortage in the market and effectively forcing the government to concede to their arbitrary demands. With a new government about to assume office, the cartel appears to be resorting once again to the same manipulative playbook. No matter how outrageous and unforgivable the conduct may be, both the government and consumers are apparently held hostage by a handful of local refiners in this sector.

The government began fixing the price of soybean oil in 2021, but the measure has neither curbed market volatility nor prevented manipulation. If refiners have the final say on price hikes and the government is forced to comply, what is the point of setting fixed prices at all? It appears that consumers' interests could be better protected by increasing the number of suppliers and ensuring fair competition in the market.

That said, keeping the market stable during Ramadan has always been a challenge for successive governments, a task often compounded by persistent imbalances in the market economy. This time, however, a new element comes into play - a government set to assume office just days before the holy month begins. The incoming government will have no time to waste and it must place the welfare of the poor at the centre of its immediate priorities. The Minister for Commerce, in particular, should urgently convene meetings with traders' associations, including wholesalers and retailers, to ensure price stability throughout Ramadan. At the same time market monitoring mechanism should be strengthened and strict steps taken against the dishonest businessmen to ensure that the prices of essential commodities remain within the reach of ordinary people.