The government has stepped up efforts to curb abnormal price rises in essential commodities, directing district commissioners (DCs) to take legal action against traders involved in artificial shortages, illegal hoarding, syndication and selling goods above government-fixed prices.
The instruction was issued by the commerce ministry following a high-level meeting, chaired by Commerce Minister Khandaker Abdul Muktadir recently, according to the ministry sources.
The DCs have been asked to conduct regular and strict monitoring of local markets to prevent artificial shortages, illegal hoarding and overpricing.
They have also been instructed to operate mobile courts and take immediate legal action against traders involved in syndication, hoarding or other unfair market practices.
The district administrations have further been asked to coordinate with relevant local authorities to ensure the smooth and uninterrupted movement of agricultural products from producing areas to Dhaka and other parts of the country.
The ministry said seasonal factors and fluctuations in the supply of some commodities had recently been observed in different markets, but the overall market situation remained normal.
It, however, instructed field-level administrations to remain vigilant and take necessary measures to ease consumer hardship and help keep prices of essential commodities under control.
Prolonged monsoon rains, high import taxes, dependence on overseas supplies and disruptions in domestic supply chains are among the key factors driving up prices of essential food and agricultural commodities, according to recent meeting minutes of the commerce ministry.
The minutes said prolonged rainfall and adverse weather conditions between July and October often disrupt the production and supply of seasonal vegetables, causing temporary price hikes during the period.
High import taxes are also contributing to price pressures on some commodities. Green chillies and tomatoes, for instance, face a Total Tax Incidence (TTI) of around 61 per cent, which adds significantly to their market prices and increases price volatility.
An NBR official said, "We will consider rationalising the existing tax on green chillies and tomatoes if the commerce ministry submits a proposal regarding the issue."
The meeting observed that although domestic production of most essential commodities remained relatively stable, the country remained heavily dependent on imports for a number of key items, including edible oil, sugar, wheat and lentils.
As a result, fluctuations in international prices and disruptions in global supply could have a direct impact on the domestic market, it said.
The minutes also identified supply disruptions and market manipulation as other major causes of abnormal price increases.
Production shortfalls, transport barriers and disruptions in the movement of goods can create supply gaps in local markets. Syndication and illegal hoarding, pushing prices beyond normal levels, can further aggravate such shortages.
Currently, a good number of essential items are priced high in the kitchen market, causing considerable hardship for consumers.
When contacted, a senior official of the commerce ministry said that while seasonal factors might cause temporary price increases, artificial shortages and supply-chain bottlenecks required closer market monitoring and timely intervention to prevent unusual price hikes.
