Editorial
Holding the price line
A sharp eye on supply and distribution is the key
LESS than a month to go before Ramadan, the market of essentials is smarting under price pressure. Even though it is a peculiar seasonal phenomenon in this country, the degree of restiveness of the market at this stage is purely speculative and artificial; for the stocks, we are assured, remain adequate with more in the pipe-line. Given our rather critical dependence on import for the availability of Ramadan essentials, their timely pro-curement, keeping pace with projected demands is of crucial importance. Simultaneously, steady supply and distribution of domestically produced commodities will have to be maintained.
In all of this, joint monitoring by commerce and food ministries and business community leaders, going be-yond occasional consultative engagement can make a huge difference in the fight against speculative, ma-nipulative and syndicated trading. In playing out its role, the government should refrain from interfering in the working of market forces of demand and supply. Let them penalise the hoarders and speculators, but in the main their job is to facilitate balanced demand-supply equations by flushing the channels clean of muscle-men, rent-seekers and middlemen.
It is reported that the commerce ministry will have four price monitoring teams operate a fortnight or so before Ramadan. Hopefully, such teams will include representatives of commerce and chamber bodies to associate the private sector with the process. Of course, the FBCCI and their units together with representatives from the retail networks will be protective of their busi-ness interests, but only subject to certain business eth-ics. This is the time for extensive business to reap de-cent profits overall through spread of sales.
As for food stock, the minister is confident of its suffi-ciency, although of the targeted four lakh tonnes of boro procurement, only a half has reached his silos. His raising the procurement price by Taka 3 per kg has ap-parently fuelled a price hike in the cereal market. But the hindrance placed by the millers to the procurement of the remainder of the targeted amounts has been re-moved by their retraction from the earlier demand for the higher purchase rate with a retrospective effect. All the same, the PM has stressed import and wheat in sub-stantial quantities seem to be in the pipeline. Interna-tional prices are still not high, so that if we should need to import rice it better be negotiated from now on to avoid higher costs. As for distribution to the poor and middle income groups OMS operations will have to be elaborately planned.
The Trading Corporation of Bangladesh (TCB) has been historically reduced to a speck; even last year it played a negligible role. TCB will have to be a sizeable public sector player for fair distribution of commodities at affordable prices. It must be given all the logistic and resource supports it needs.
Principally, however, whatever fiscal intervention and bank lending would be needed for energetic private sector trading must not be denied them.
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