Traders warn of Ramadan price surge amid extortion, supply strain

Traders have cautioned that prices of essential commodities could soar ahead of Ramadan if extortion, corporate manipulation, and disruptions in the supply chain are not urgently addressed.

At a discussion hosted by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in Dhaka on Wednesday, wholesalers and importers alleged that law enforcement agencies were turning a blind eye to widespread extortion and harassment of traders.

The meeting was chaired by FBCCI Administrator Md Abdur Rahim Khan.

Speakers warned that unless the government intervenes swiftly, market instability could deepen in the run-up to the fasting month.

They also accused large corporations of driving up prices through packaging and distribution controls, while calling for import duty cuts, stronger market monitoring, and decisive action to end extortion.

They urged the government to take immediate steps to curb extortion by local groups, saying the dominance of such syndicates has grown alarmingly.

Representatives from Dhaka's Shyambazar and Karwan Bazar markets accused large corporations of manipulating prices and controlling supply chains.

Farid Uddin, president of the Shyambazar Agricultural Products Traders' Association, described it as "unfortunate that corporate businesses are preying on ordinary people like vultures".

"A product worth Tk 3.0 becomes Tk 40 after packaging. The interim government has failed to play any role in this regard," he said. "The government must rein in these corporate houses," he added, alleging that extortion is rampant along trade routes.

"We pay bribes twice while loading and unloading goods," he said, claiming that some law enforcement officials are complicit and that the practice must end.

Omar Faruk, president of the Karwan Bazar Wholesale Traders' Association, said market stability depends on uninterrupted supply. "If goods flow properly, prices will remain stable," he said, urging authorities to allow traders to operate without fear.

He also demanded uniform pricing for soybean oil, noting that companies often charge different rates.

Bashir Uddin, president of the Moulvibazar Traders' Association, alleged that refiners favour select dealers, creating artificial shortages.

Former FBCCI director Gias Uddin Chowdhury Khokon stressed the need to free markets from extortion.

"To keep essential prices stable during Ramadan, imports and supply must remain uninterrupted. The government should hold discussions with major importers," he said.

"Most problems arise at the upper level of the supply chain. Although monitoring focuses on retail and wholesale markets, no one wants to touch the mill owners."

Zakir Hossain, president of the Super Market Owners' Association, said harassment by officials has become routine.

"Every Ramadan, prices rise due to weak monitoring, allowing a few traders to exploit the situation," he said, accusing corporate firms of engaging in unfair business practices.

Sirajul Islam, president of the Fruit Importers' Association, said high import duties were inflating costs.

"If the import price of dates is Tk 100, we pay Tk 200 in duties. High customs valuations raise costs and encourage money laundering," he said.

Meghna Group's Deputy General Manager, Taslim Shahriar, said low gas pressure was disrupting sugar production, while Shafiul Athhar Taslim, director of TK Group, proposed direct government imports of sugar and edible oil to help stabilise prices.

FBCCI Administrator Md Abdur Rahim Khan said law enforcement and other agencies would be asked to take firm action against extortion and ensure smooth transportation of goods.

He also urged agencies, including the Directorate of National Consumer Rights Protection, to ensure that the interests of traders are protected while safeguarding consumers.

At the same time, he called on business leaders to take active roles in preventing food adulteration.