Price spiral
In poor economies like ours, unchecked price spiral is a regular phenomenon. To be precise, there are the following reasons behind it: i) Skyrocketing fuel price. ii) Supply side setback. iii) Demand-supply gap due to mismatch between GDP growth & exponential population growth. iv) Lastly & most importantly, irrational consumer behaviour. Our media often highlight the mismanagement of the govt. & sometimes blame the skyrocketing fuel price as the reason for price-hike of essentials. But they fail to notice the reasons mentioned above. In India, we notice that despite its huge population, it has been successfully checking its inflation which is hovering around 4% for the last couple of years. They are also suffering from fuel price spiral. But it is its consumers who are very conscious about the reality. It is their buying habits that keep the prices contained. Moreover, they are not rumour-driven. But in Bangladesh, we consumers are very much rumour-driven. When we hear that a particular commodity is running out of stock we rush to buy it. In that way every single household becomes hoarder, whereas media people blame the so called syndicates. In open market economy, nothing like syndicate (in negative sense) exists. Rather, there are certainly CARTELS, that exist to control the unwarranted ups & downs in the price of a certain commodity. As for SYNDICATION, whom we blame are those who keep the prices comparatively lower because they enjoy ECONOMIES OF SCALE for their bulk import. If we abolish them, then small importers will import those at higher prices. We saw the price spiral during Ramadan, the holy month of fasting. We saw the prices of onion, brinjal etc soaring day by day just before Ramadan. The media started blaming the traders. But what they failed to notice is that the supply of brinjals didn't increase instantly, so the demand outpaced the supply. So what I think is that we consumers should be conscious, rather than blaming others for our plight.
For all latest news, follow The Daily Star's Google News channel. 
Related News
NHRC response to The Daily Star editorial
25 April 2024, 05:00 AM
Letters to the Editor
Destruction of Hargazi Canal
24 April 2024, 08:18 AM
Letters to the Editor
Trapped in a never-ending scroll?
31 December 2023, 13:37 PM
Letters to the Editor
When will the government learn from past dengue outbreaks?
22 August 2023, 03:00 AM
Letters to the Editor
Install fire-escape facilities in every building
17 August 2023, 20:03 PM
Letters to the Editor
Comments