Business syndicate
Very often whenever there is a price hike of any item of daily necessity or an industrial raw material, a group of manipulators, popularly know as "syndicate" surfaces. Hoarders, monopolistic importers and retailers in collusion with each other create an artificial shortage making the shop-shelves empty and then charge the price at their will. Sometimes this gamble is short-lived and sometimes it continues for a considerable time. Whatever may be the life of the manipulation, the members make a brisk business of over profit at the cost of the poor consumers. In Bangladesh, there is hardly any powerful instrument which is able to catch hold of the syndicate.
For the last few days there is lot of news and views on the sudden price hike of a very important industrial raw material called "cotton yarn". All of a sudden, there has been a tremendous shortage of yarn and price of the item has increased more than Tk. 25.00 to Tk.30.00 per kg. The resultant shortage and sudden price hike made the garment exporters (RMG), the main forex earner of the country, lose competitiveness. They are now switching over to China and other sources instead of local fabrics.
Due to increase of prices and shortage of yarn many local weavers, especially the manufacturers of export quality fabrics, have closed down their weaving units because the RMG units are unable to pay them more to maintain their competitiveness with their foreign buyers. The spinners are big investors and are in full control of the government agencies. They convince the government not to allow import of yarn and maintain their supremacy on the weavers. The ultimate results are against the national interest because the RMG units opt for import at lesser prices from foreign countries.
I think the government should look into the matter.
For all latest news, follow The Daily Star's Google News channel.
Comments