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Big parties backing extortion

Transport sector crime pushes up prices of essentials; minister, businesses share frustration

Staff Correspondent
The big political parties Eire encouraging extortion in the transport sector in their own interest, Commerce Minister GM Quader said yesterday.
"Extortion at different places and under different names is on and it is causing prices [of essential commodities] to go up," he said speaking at a seminar on modernisation of agriculture and acceleration of farm produce exports.
Quader, a presidium member of the Jatiya Party, a key component of the Awami League-led ruling alliance, said, "Big political parties are encouraging it [informal payments and extortion] more than discouraging it."
He said political parties do not go tough on this kind of extortion since they need people to get votes for them. Extortion in the transport sector has become a norm and people involved in it consider it their legal business and their right.
Nowthere is an effort to "legalise" this extortion.
Quader's remarks came a week after Shipping Minister Shajahan Khan along with some transport leaders demanded before a parliamentary sub-committee that extortion in the transport sector be made legal to “stop corruption in the transport sector”. The minister said, We are responsible for whatever is going on in the country. Because we [the people] make the government.. .This is the price we pay for democracy.”
He blamed the lack of good governance for extortion and corruption.
Bangladesh Agro-based Product Producers and Merchants Association (BAPMA) organised the seminar at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Businessmen at the discussion blamed extortion and perishing of vegetables and fruits during transportation as major causes behind the rise of the prices of essentials.
Referring to the dominance of middlemen in the supply chain of essentials, Quader said middlemen are very powerful here. "They help us become ministers," he said. He also said there is no way to get rid of the middlemen; they are everywhere in the world.
On the market of essential commodities, he said a handful of processors and importers control the major portion of the market, whereas the Trading Corporation of Bangladesh is able to cater for only three percent of the market.
"The government is trying to strengthen the TCB," he said, expressing doubts about the TCB's ability to intervene in the market properly in times of need.
FBCCI President AK Azad
said prices of agricultural produce such as vegetables and fruits go up because of transportation cost, extortion and perishing of products. Cost of interest on bank loans add to these, he said.
He said businessmen at meetings had informed the home ministry about how much money they paid the extortionists and at how many places.
“When we ask a trader how the price of a papaya bought for Tk 5 in Rajshahi becomes Tk 120 in Dhaka, they blame extortion, transport cost and bank loans," saidAzad.
Azad, citing the hike in bank interest, also urged banks not to impose additional interest on entrepreneurs who borrowed before the spike in interest rates.