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COMMODITY

Bearing the brunt of inflation

Sohel Parvez and Md Hasan
Any distant onlooker would have thought that she was garnishing her cooked meal. That was far from true. Nurjahan puts the last remaining amount of rice into the steaming pot of water, the only staple food available for her family of four.
Failing to get coarse rice, she bought one kilogram of medium quality rice at Tk 40 a kg, half of which she paid and the remaining on credit, due by today.
The reason: Rampaging inflation that returned to double digits in June. Inflation soared to 10.04 percent in June from 7.44 percent in May.
This meek meal of cooked rice, leftover potato curry and fish intestines, would be the first meal for Nurjahan and her children, at 'iftar'. They had puffed rice in the wee hours of the morning to observe the onset of the holy month of Ramadan.
“I could not manage anything but puffed rice at dawn because 1 had to work until 10pm the day before, just to make ends meet,” said the 40-year-old woman, who along with some other families, lives on the sidewalk over the western circle of Plassey near the University of Dhaka.
Nurjahan's neighbour, the five-member family of Ibrahim, faces a slightly better day. They scavenged cooked rice from the canteen of SM Hall of Dhaka University. However, the stench of the food would repel passers-by.
The scenes are commonplace in the marginalised and low incomepeople who are struggling due to a consistent rise in the prices of essentials and an erosion of purchasing power. According to the World Bank, an excess of over 40 lakh people have been pushed deeper into poverty.
The price hike has taken its toll on many other sections of society as well. Mid-income people cringe at the thought of purchasing vegetables, meat and fish, which are fast becoming a luxury. Added pressures come from the onset of Ramadan, as the prices of vegetables such as green chilli, brinjal, cucumber, gram and sugar soar on high demand.
The summer heat, coupled with more than 12 hours of fast, has also pushed the prices of fruits up.
Traders report that the rise in the prices of commodities is due to high demand for food items. Brinjal, a savoury delight for many who fast, further suffers fuelled prices due to floods in some districts in the northern region. Similar fate stands for green chilli, used to add flavour to many dishes to the culinary delight of Bangalees.
Allegations swirl around price manipulation by some large traders.
Consumers face endless bargaining battles and bickering as they fight a losing battle against retailers.
Muzibul Haque is not ready to buy brinjal at Tk 60 per Kg. The apparently bewildered man shouts at the greengrocer, “How dare do you demand Tk 20 extra for a kg of brinjal, which I bought forTk 40 just two days ago?”
“If you don't want to pay this price, don't buy from me. I am not here to clarify the obvious reasons behind the price hike.” This was the reply from Shahabuddin, a 67-year-old vegetable vendor, in the city s
Magbazar area.
Even after adopting all means possible, the government has failed to keep pieces within tire consumer's reach, also unable to find logic behind why die price of brinjal has doubled overnight.
Haque, who is a mid-level employee of a local insurance company, says he often loses his temper every time the prices of commodities rise.
The middle class consumer explains how the recent inflationary pressure has downsized standards of living. He said with only Tk 20,000 salary a month, he could comfortably live with his family.
"I don't really understand the dynamics of the kitchen market. If you blame the global price hike, how can you justify the sky rocketing prices of local products or vegetables?" Haque said.
Shahabuddin, the silent vendor, was busy serving other customers. Suddenly something provokes him to speak up, he may be just a vendor for vegetables, but he has to buy other daily commodities from the market as well.
"My fellow vendors and I are squeezed between two extremes; we have to answer the queries of customers about rising prices but when our suppliers demand high prices and we want a justification, we are left in the dark." Shahabuddin said.
Dr Mohammad Shafiq, a professor of Islami Studies at the University of Dhaka, shops at Palasy market, moving from one vendor to the next, unable to strike a deal with any. He ends up buying a pair of lemons forTk 16.
“It's unbearable. I have cut the volume of my purchases by half due to high prices."
Monir Hossain, a fruit seller in the same market, seems equally distressed. "I have been buying fruits from the same wholesaler ever since. The price of green apples have increased byTk 200 per 18 kilograms, overnight," he said, “This has negatively affected my sales volume."
Maidservant Mala went to buy beef from the market the other day to prepare a good dish forher family. She instantly abandoned the idea when she saw that a kilogram of beef cost Tk 230. up from Tk 180 a day before.
“Sometimes, my motherly instincts distracts me and 1 long to prepare something special for my children," said Mala, “The current harsh conditions snap me right back to reality, during the auspicious month of Ramadan."
hasan@thedailystar.net sohel@thedailystar.net