Open market sales

The Trading Corporation  of Bangladesh (TCB) has begun from May 15 open market sales (OMS) of five key essential commodities to keep their prices stable during the  Ramadan. The commodities are sugar, soybean oil, lentil, grams and dates. TCB will sell the essential items at subsidised prices using 187 roaming trucks - 35 in Dhaka, 10 in Chittagong, five each in divisional cities and two each in district towns. Prices have been fixed at Tk55 kilogram for sugar, Tk 80 for lentil,Tk 85 for per litre  of soybean oil,Tk 70 for gram and Tk120 for dates. Each consumer can buy a maximum of four kg of sugar, 3.0 kg lentils, 5.0 kg grams and 1.0 kg dates. TCB has also enlisted  about 2,811 dealers.OMS service will not be available on Fridays.
As an example of price differential between OMS and retail market prices, the May 18 issue of the FE quoted the retail market prices in the city as follows: sugar Tk70 per kg, gram between Tk 85 to Tk90 per kg, lentil between Tk 80 to Tk115 depending on quality, a litre of bottled soybean oil Tk105.
 Ramadan is imminent but there is no good news for the consumers. They will have  to spend additional money to buy the Ramadan items. Prices of these items are going up ignoring the cautious approach of the government. In one month's time prices of some of the items have doubled. 
Businessmen at Chawkbazar are getting ready to sell iftar items. Preparations are also afoot at the Bailey Road. Prices of iftar items are normally high in these places. Prices of iftar ingredients have gone up. So it will have impact on prices of iftar items.
Prices have increased before Ramadan because of the tricky role played by a section of unscrupulous businessmen. The Ministry of Commerce has already addressed letters to the district administration for undertaking market monitoring. Committees have been set up in Dhaka for monitoring. The Tariff Commission, Agricultural Extension Directorate and TCB have collected information about import, value and stocks of commodities.
It has been observed that there is enough import of commodities in the private sector. Even then prices are not coming down. Although TCB has started the OMS operation, supply is not adequate. There is need for increasing the number of trucks for TCB operations.
It is said that five to seven big companies control the market. A few companies control the sugar and edible oil market. Trading companies in Shyambazar and Moulvibazar control onion, dal and spices markets. Commodities are imported from world market. World prices are falling, but it is not reflected in the local market. 
The commerce minister has said that the government is consumer-friendly  and will take all measures to keep prices normal.
The writer is an economist and columnist.
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