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Price control move pays off little

Refayet Ullah Mirdha
Basic commodity prices are on the rise despite frantic efforts by the government to control market, and promises from traders, during Ramadan.
To this end, the commerce ministry resorted to fixing prices of some of the daily necessities. The other government measures include strong market monitoring where the apex trade body Federation of Chambers of Commerce and Industry stretched its hands, introduction of price charts at shops in kitchen markets and open market sales of some items by state-run Trading Corporation of Bangladeshin Dhaka.
Market surveys show that these measures are yet to pay off as much as expected.
FBCCI in its latest visit to some kitchen markets in the capital on Saturday found a downward trend in the prices of essentials, except for sugar. An abundant commodity supply had led to this downtrend, the businessmen's forum also found. The business leaders, however, admitted to the fact that essentials'
prices were not below or at par with the government fixed rates.
Annisul Huq, FBCCI's president who led the team to the kitchen market, said sugar prices remain high.
He found that the sweetener was selling at Tk 48-Tk 50 per kg at retail level, whereas Commerce Minister Faruk Khan alerted the traders that its price should not crossTk 42 a kg.
Potato price remained static at Tk 27-Tk28perkg.
The wholesale rate of potato at cold storage gates has been fixed at Tk 22-Tk 23 a kg, sugarTk 39, onion Tk 16-19 and garlic and gingerTk 55-60.
During Saturday's visit, tomato was found selling at Tk 55-Tk 60 a kg, down from its previous prices of Tk 80-Tk 90 a week earlier.
Green chili was selling at Tk 80-Tk 100 per kg, lower from the previous rate of Tk 120-Tk 160. Brinjal was priced at Tk 36-Tk 40, down from last week'sTk60-Tk 80 per kg.
The FBCCI team found chickpea selling at Tk 52-Tk 55 against Tk 60 per kg a week ago.
Sales of edible oil by TCB at fair price from the beginning of Ramadan also helped its price ease, as the FBCCI chief shared his market expe-
rience with reporters.
Meanwhile, lentil maintained its previous high at Tk 105-Tk 110 a kg because of the item's scanty supply.
Pointing his fingers at sugar price, Huq lamented that traders do not go by the government rate.
In presence of a huge number of traders at the August 20 meeting with the commerce minister, the rates of some essentials including sugar were fixed.
Besides asserting adequate stock of potato with the cold storages countrywide. Faruk Khan at that time warned of the businessmen against any artificial crisis saying that the government will immediately import 50,000 tonnes of potato to ensure a stable market.
Khan said there is no reason to panic, as the stock of basic commodities in the local market is enough.
Defending the government move to fix commodity prices, Golam Mowla, general secretary to Moulvi Bazar Baboshayee Samity who was among the meeting attendees, said sugar price here is still low compared to international market price.
Fie also pointed to the item's scarcity in the neighbouring countries
because of its output shortfall internationally.
"The government should make a good stock of sugar right now to tackle any crisis in near future," Mowla suggested.
On lentil scarcity, he said traders could not import the item this year from India, as (he neighbouring country slapped an export ban.
Imports from Syria and Turkey, the two other sources of the lentil importers, have also been badly affected this time because Kuwait has already purchased a huge quantity, Mowla pointed out.
He, however, said: "We are trying to keep the prices at consumers' tolerable level."
Meanwhile, FBCCI plans another market visit in two or three days in a bid to strengthen its monitoringdrive.
Huq expects a further fall in commodity prices, but lays emphasis on the government's move to raise the supply.
The government yesterday started purchasing 1,000 tonnes of sugar through the TCB from Bangladesh Sugar Refiners Association to sell it to consumers at fair prices. reefat@lhedailystar.net