Monday | 13 January 2025 | Reg No- 06
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Monday | 13 January 2025 | Epaper

Inflation tightens grip on low-income families

Published : Monday, 21 October, 2024 at 12:00 AM  Count : 420
Pranto Chatterjee
The citizens of Bangladesh are confronted with the more pertinent question-in this time, replete with rising philosophical questions-of "to buy onions or not to buy onions." It is a question as confusing as it gets, akin to Shakespeare's soul-searching question, only that this time, the stakes are considerably more real. The prices of necessities have shot through the roof, turning what should be a simple chore into a financial nightmare for millions. The growing disillusionment with the rising tide of inflation is digging deeper into the pockets of ordinary people.

Yet, amidst this economic storm, the interim government, led by Chief Adviser Prof Muhammad Yunus, is trying to take steps to alleviate the suffering: its prize for being at the head of an apparently sinking ship. The price of basic commodities like eggs, onions, and vegetables continues spiraling out of control. Eggs, once a household staple, are now being sold for Tk 200 per dozen, while onions and green chilies, once moderately priced, have become as expensive as rare delicacies. These price increases have hit the average consumer hard, especially low-income groups who must now make difficult choices between daily necessities.

The cold, harsh truth is that inflation has reached such a level in Bangladesh that mere survival seems like an impossible dream. Behind this inflationary spiral lies one of the most harassing factors: the syndication of market prices. Certain organized forces operating in the shadows have a stranglehold on the supply chain of essential items, dictating their prices. While the government wages a battle against inflation, these syndicates remain like shadows from Orwell's Animal Farm-elusive, despite government crackdowns. Meanwhile, the profits continue flowing in at the expense of the people.

Eggs, which saw a sudden Tk 20 drop overnight after the mere suggestion of importing them, provide an apt illustration of this market manipulation. It's truly a Kafkaesque situation, where consumers are left dumbfounded by the sudden and inexplicable fluctuations in prices.

The interim government, meanwhile, has initiated several projects in its effort to regain control. Prof Yunus announced that he intends to sell vegetables at subsidized rates for low-income families during a special meeting with his advisers. The government will purchase potatoes, onions, and green chilies directly from farmers and sell them through Open Market Sales (OMS) at key locations in Dhaka. So far, ten such locations have been selected for the pilot project, which will be expanded if it succeeds. The Departments of Agricultural Marketing, the Trading Corporation of Bangladesh, and the Bangladesh Road Transport Corporation have provided the necessary logistical support to ensure the supply of vegetables from major production areas like Munshiganj, Faridpur, and Pabna to the capital.

This pilot project is just one of several measures the government is taking to ease the burden on the people. Additionally, the government has cut tariffs on major imported items. The National Board of Revenue recently reduced the duty on sugar imports from 30% to 15%, bringing down the price of raw sugar by Tk 11.18 per kg and refined sugar by Tk 14.26 per kg. The government is considering tariff cuts on other items as well, although no specific announcements have been made.

These efforts demonstrate that the interim government is keenly aware of the people's needs and is working hard to find solutions amidst the criticisms and economic hardship. However, despite these well-intentioned moves, the inflation "monster" refuses to lie down.

Take rice, for example, the staple of staples in Bangladesh. Despite claims of a surplus, rice prices have continued to climb. This paradox-where increased supply results in higher prices-is indicative of a larger dysfunction in the market. Natural calamities like floods and crop failures have exacerbated the situation, but the fundamental problem remains a free market dominated and controlled by powerful interests seeking profit.

Yet, despite the challenges, the people of Bangladesh still place their trust in the current administration. Against this backdrop, Professor Yunus, the pioneer of microfinance, emerges as one of the few figures capable of guiding the country through these tumultuous times. Under his leadership, various measures to control inflation and restore market stability have been proposed. The government's decision to import eggs and cut tariffs on essential items is a welcome move. Additionally, Yunus has directed his advisers to act swiftly against those who artificially inflate prices, signaling the government's determination to curb the power of syndicates.

But as the days wear on and prices remain high, the question lingers: is this enough? The interim government's efforts, though commendable, have so far failed to bring about a significant reduction in inflation. Whether the roots of the crisis can truly be addressed by the government remains to be seen, or if these measures are merely temporary solutions to a deeper problem.

The grim reality is that inflation continues to erode the purchasing power of ordinary citizens. The prices of essential commodities remain out of reach for many, and the economic uncertainty is gradually overwhelming the population. Low-income families, in particular, are being hit hard, forced to cut important commodities from their budgets just to make ends meet.

Amidst this din, a deeper realization takes hold. The battle against inflation is not merely an economic one; it is a test of resilience and governance. The people of Bangladesh, having weathered many storms, must come together once again in the face of adversity. For the interim government, with all its good intentions, must understand that inflation cannot be tackled with quick fixes alone. A long-term vision is needed-one that addresses the structural problems within the market and breaks the syndicates' stranglehold on supply and demand.

The road ahead is long and arduous, but with sustained effort and a commitment to genuine reform, there is a glimmer of hope. The government's pilot project to sell vegetables at subsidized prices offers a glimpse of what can be achieved if the right policies are pursued with care and precision. However, the success of these measures will depend on the government's ability to remain focused and resist the influence of powerful, entrenched interests.

Eternal vigilance by both the government and the people will be essential as Bangladesh moves forward. While inflation may be an inevitable aspect of economic cycles, the way a nation responds to it defines its character and future prosperity. With determination and responsible governance, Bangladesh can overcome this inflationary crisis and emerge stronger than ever. The people of Bangladesh deserve a market that works for them, not against them-a market in which they can live with dignity and hope for a better tomorrow.

The writer is a master's student in Autonomous Vehicle Engineering at theUniversity of Naples Federico II, Italy



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