While country’s economy is on a path of improvement, the instability in the essential commodity market remains a major challenge for society. The unavailability and price hikes of essential goods are increasing the daily expenses of the general population. Due to high prices, many families struggle to maintain their standard of living, which has long-term negative impacts on their economic stability. Although the government has taken various measures to control commodity prices, these efforts have not been sufficiently effective.
The reasons for abnormal price hikes include disruptions in the supply chain, the dominance of syndicates, the excessive profiteering tendencies of intermediaries, and the creation of artificial crises to inflate prices. To restore transparency and discipline in the market under the current circumstances, several critical reforms are necessary. Implementing these measures would stabilize the essential commodity market and bring relief to consumers. Below are some key reforms to stabilize the market:
Improving Supply Chain Management
Ensuring the proper and uninterrupted supply of goods is the first condition for stabilizing the essential commodity market. From production or import to market delivery, there are multiple stages in the supply chain, which sometimes become unregulated. Transparency and effective monitoring at every level of the supply chain are essential to minimize the influence of hoarders and black marketeers.
Restructuring Wholesale Markets
The wholesale market system is a vital component of any country’s economy, serving as a bridge between producers and retailers. Despite the heavy reliance on wholesale markets in Bangladesh, they have not been institutionalized. As a result, there are no standardized benchmarks or monitoring systems for determining prices in wholesale markets. To address this, the government should take initiatives to restructure the wholesale market system. It is necessary to implement regulated pricing mechanisms and introduce weekly price lists in local markets.
Direct Connection Between Farmers and Retailers
An important step to make the agricultural product market more efficient and effective is establishing a direct connection between farmers and retailers. This would eliminate intermediaries, ensuring that farmers receive fair prices for their produce and are encouraged to produce more. Consumers would also benefit from lower prices for agricultural products. Therefore, every subdistrict should establish at least one agricultural marketing center or "farmers' market," where farmers can sell their goods directly. A suitable policy framework and an ideal model for farmers' markets are essential to achieve this goal.
Enforcing Laws to Prevent Hoarding and Black Marketing
The commodity market is heavily influenced by hoarders and black marketeers. Prices of essential items such as potatoes, onions, eggs, rice, lentils, oil, and sugar are controlled by hoarders and wholesalers. Nearly all consumable goods, whether domestically produced or imported, are now under the control of syndicates. A group of unscrupulous traders and hoarders forms syndicates for domestic products. For imported goods, a handful of large corporations hold control, where invisible syndicates are also at play. Strict enforcement of laws is necessary to curb hoarding and black marketing.
Promoting Price Transparency and Consumer Awareness
Promoting price transparency and increasing consumer awareness are crucial for both producers and consumers. Ensuring the free flow of price information to consumers can create a transparent and accountable market system. This allows consumers to make informed purchasing decisions and fosters healthy competition in the market. Technology can play a key role in disseminating real-time price information to the public.
Policy and Administrative Transparency
A strong and effective regulatory authority must be established to enhance the government’s role in market control. Additionally, coordination among agencies such as the Directorate of National Consumer Rights Protection, the Competition Commission, the Department of Agricultural Marketing, and other regulatory bodies needs to be improved. Regular monitoring systems must also be strengthened to effectively prevent unexpected hoarding or price hikes.
The writer is the Executive Director, Voluntary Consumers Training and Awareness Society (VOCTA)
BDST: 1312 HRS, JAN 12, 2025
