New commodities law soon to thwart price manipulations

A new essential commodities law incorporating strict punitive actions against market manipulations is in the making with an array of items on the shopping list to protect consumers across Bangladesh, sources say.

The proposed law, titled 'Essential Commodities Act 2025', is being framed in the context of global and local market dynamics by abolishing the existing 'Control of Essential Commodities Act 1956'.

It will be framed within a couple of months or the next three months, they added.

Some new essential items are expected to expand the list of fair-price commodities in the new law. The items include rice, wheat, flour, poultry, eggs, milk, fish, soap, paddy, toothpaste, potato, detergents, black cumin, green chili, puffed rice, flattened rice, liquid pesticides, and drinking water.

Some commodities, including cigarettes, on the current list are likely to be excluded.

More than two dozen essential items are under the existing commodities act enacted way back in 1956.

The law on the anvil would include deterrent punitive measures like five to eight years' jail with fines "for violations of the marketing order or for hoarding and blatant price manipulations".

A high-powered inter-ministerial meeting already held recently on review of the issue-evidently in the wake of alleged price-fixing through oligopolization.

"The meeting suggested adding necessary provisions compatible with current economy and local market practices," an official told The Financial Express.

Contacted, a senior official of commerce ministry said, "We have moved to prepare new essential commodities law in a bid to protect consumers' interests to get such items at fair prices in the light of the domestic and international market."

He adds: "The interim government wants to keep the prices of essential items stable throughout the year and it also wants to expedite the supply and import process of the items declared as essentials so consumers feel ease during purchasing any essential commodities."

Currently, the legal tool for controlling essential commodity prices and price manipulations by businesses has been in place "only on paper", says an expert, adding that prices had spiraled with virtually little effective action to stem the tide.

"The Act shield seems lying blunted for a lack of use to take punitive actions against hoarding and blatant price manipulations," he adds.

Section 6 of the Control of Essential Commodities Act 1956 stipulates three years' imprisonment, with or without fines, for violations of the marketing order.

The existing Act covers foodstuffs, cotton and woolen textiles, paper, mechanically propelled vehicles, their spare parts and tyres and tubes for the same, coal, iron and steel, mica, drugs and medicines, including those administered by injection, chemicals including gases, electrical and radio goods and appliances, including wires and cables.

Besides, medical and surgical instruments and appliances, glass and glassware, including scientific and laboratory equipment, artificial silk yarn, cycles, their spares, and tyres and tubes for the same, matches, timber, sanitary and water-supply fittings, infant, patient foods and allied articles, cement, cigarettes, fertilisers, tallow, torch cells etc are also under the purview of the existing act.

According to the section 3 (1) under the act, the government, "if it appears to be necessary or expedient for maintaining, or increasing supplies of any essential commodity or for securing its equitable distribution and availability at fair prices, may, by notified order, provide for regulating, or prohibiting the production, treatment, keeping, storage, movement, transport, supply, distribution, disposal, acquisition, use or consumption thereof and trade and commerce therein".

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