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How much do the poor
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they are getting a lower volume of rice at the mill gate since the supply of paddy is lower in the markets.
Nirod Boron Saha, a rice trader in Naogaon, a trading hub, blamed the jump in transport costs in recent weeks for the price hike.
He said before the latest spell of blockades, it would cost Tk 12,000 to Tk 13,000 for them to send a truck full of rice as the number of vehicles available to move goods dropped sharply as owners feared torching.
Owing to the blockades, the fare went up to Tk 23,000-Tk 24,000, he said. “We are actually now seeing the impact of the additional transport cost.”
Ghulam Rahman, president of the Consumers Association of Bangladesh, said at a time when inflation is high, the price hike does not always depend on supply and demand.
“Traders want to make more profits because there is inflationary pressure. That’s why the price went up.”
He thinks if the government does not take measures to control inflation in the right way, this situation will not change.
“The government needs to focus more on this issue.”
Amid stubborn inflationary pressure, the government has expanded the schemes that give the poor and the lower-income groups cushion against higher prices.
For example, the government distributed 4.74 lakh tonnes of rice and flour through open market sales between July 1 and November 30 this fiscal year, up nearly 47 percent year-on-year from 3.23 lakh tonnes a year ago, data from the food ministry showed.
The distribution under the food-friendly programme rose 17 percent to 4.39 lakh tonnes from 3.75 lakh tonnes.
Still, the rice price is showing an upward trend.
Anu Muhammad, a former professor of economics at Jahangirnagar University, said there is no accountability of the institutions responsible for ensuring discipline in the markets.
He said the spike in the prices of essential goods can’t be explained by factors such as demand and supply alone.
“The problem related to the price hike of rice can’t be resolved separately. This is a market failure. If this continues, people’s suffering will only intensify.”
The noted economist says the vested groups that are closed to the government have become desperate since they are not brought to book.
A senior official of a commodity processor says commodity prices usually remain volatile in the months leading to national elections. “One can’t explain it from the economics point of view.”

Textile millers urge central bank
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is still recovering from the Covid-19 pandemic and challenges related to the Russia-Ukraine war, he added.
Many firms are running their businesses without making any profit while others are incurring losses.
At the same time, the minimum wage of workers has risen 50 percent.
The local currency was devalued by around 40 percent in the last two years.
Consequently, firms’ limit to open LCs reduced and, as a result, many companies are struggling to bring in enough raw materials.
As a result, it has become tough for them to provide salaries and wages to workers and pay utility bills.
So, the BTMA is demanding to raise LC limits and extend loan facilities as well as the repayment period for the stimulus package.