Editorial
Drop in essentials prices
The trend needs to be sustained
Apparently driven by increase in supply, prices of essentials like onion, egg, soya bean oil and green chilli that were selling at a higher price at the beginning of Ramadan have started coming down.
This is undoubtedly a positive trend that marks a departure from the past behaviour of the markets at the beginning of Ramadan. Obviously, we have a long way to go.
Though the drop in prices has been visible both at the major kitchen markets and supermarkets, most benefits are being enjoyed by the high-end consumers. The supermarkets, as part of their sales promotion drive, are selling at a discount. But common buyers at the city's kitchen markets are deprived of such a benefit.
The need is to remove the impediments to increased supply of essentials commodities in the wholesale as well as retail markets so that consumers in the middle and lower income brackets may get a wider choice and range of affordability.
It is worthwhile to note that the major barriers to smooth flow of essentials commodities to markets include delays in the movement of goods due to long tailbacks of transports carrying them at ferry terminals, at different junctions and road-crossings. Add to these the rent-seeking at different points on the road by extortionists and some dishonest members of the law-enforcing agencies.
Apart from these, the middlemen are the primary agents behind manipulating prices at the growers' level. And then follows the long chain of extortion which at every step adds to the price of those products. And the consumers have to ultimately bear the cost.
Reducing highway jams and keeping a strict vigil at the crime-prone points on the roads and highways, river terminals and railway stations would have a dramatic impact on smooth supply, availability as well as prices of the essentials.
Another imperative is to mount strong monitoring of the kitchen markets so that coordination between wholesalers and retailers is smooth to stabilise the price line.
The government will need to keep close tabs on every phase of the movement of goods to ensure their smooth supply as well as to see that lower price trend in the markets could be sustained throughout the Ramadan and beyond.
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