Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
The price of any item in the market is determined by supply and demand, a fundamental economic concept. However, the concept, on occasion, does not work in some markets where operators defy laws and rules. Bangladesh, unfortunately, is one such market. And, none knows this truth better than its consumers.
In recent years, consumers have been going through a nightmarish experience over the prices of some essential food items. Onion, potato, sugar and edible oils are among the items that are at the top of the list. The hike in prices of these items, in most cases, is caused by either domestic or external factors. At times, both are found to trigger price rises.
The skyrocketing prices of potatoes, onion and eggs in particular in the domestic market amid inflation reaching a record-high level have strongly been resented by most consumers. The government appears to be both clueless and helpless, as all its intervention mechanisms have failed to rein in the galloping prices.
When it comes to the hike in prices of the food items mentioned above, the issue of data mismatch, as far as their domestic production, has come to the fore.
Take the case of potatoes. The Ministry of Agriculture (MoA) claims that 11.1 million tonnes of potatoes were produced in the country during the last crop season. The Bangladesh Bureau of Statistics (BBS) say the production was 10.4 million tonnes while Bangladesh Cold Storage Association (BCSA) has come out with a production figure of 8.5-9.0 million tonnes. If the MoA or BBS data were correct, the country would have a large surplus of potatoes. The BCSA figure is somewhere near the actual annual domestic requirement for the stem tubers.
Many find the BCSA data more or less credible, for the people who store potatoes in storage for better prices usually unload their holdings in October and November since the new potato crop starts arriving in December.
Such data mismatch remains a common affair in Bangladesh. The flaw, inevitably, leads to wrong planning and wrong outcome. The mismatch in production figures is found also with rice, the main staple. Agencies concerned, seemingly, want to impress the top policymakers by providing doctored data. They make the situation rather difficult for the latter. The actual data coming from the field level could help the government allow the timely import of food items to make up for deficit and arrest rise in prices.
Both MoA and BBS have their people at the field level to gather data relating to the acreage under different crops and production thereof. It is important to motivate these officials to supply authentic data and help the government make proper import plans, if needed.
Entry of the corporates into the production and marketing of some agricultural food items has aroused suspicion. It is believed that the corporate houses have both power and clout to dictate prices of the consumer goods. In a market economy, corporates or otherwise are free to do business in any place they like. The government, however, is responsible for dealing with an oligopolistic approach by business entities and ensuring that every operator plays by the rules. If the government fails to carry out its role properly, problems are bound to surface. One does not need to elaborate on what has happened in this particular area.
The role of our big neighbour India is very important when it comes to the prices of food items in Bangladesh. Because of its proximity, India is chosen by traders for import of food and other industrial goods. But over-dependence on that country has a major drawback. India, without any prior notification, either puts restrictions on the export of food items or raises their export value exorbitantly. It is high time the government and private importers found other potential sources of imports at competitive prices. However, before that, it is important to have authentic data on domestic production of food items.