Abnormal increase in prices of daily essentials is not a new phenomenon. Of late, considering its magnitude it should be labeled 'price gouging' rather than confining it merely in the connotation of 'price hike' since without any relevant cause prices are being kept up deliberately just to serve the sellers' interest of confirming an unfair level of profit.
Irrationally, the prices are being found to be raised more than 30% of the regular prices which is inconsistent with a free market. Though such price increase is mainly supposed to appear followed by natural disaster, war ravaged economy, pandemic issue, supply chain issue or other external shocks but in Bangladesh, prices tend to go abnormally up due to a host of artificial tactics frowning upon the Smithian 'invisible hand'.
Factors such as the pervasiveness of so-called market syndicates, unscrupulous traders, illegal toll collection here and there, highhandedness of the middlemen, abnormal profit seeking attitude of sellers at different stages, manipulated market information ultimately come up with such despicable abnormal price increase. In this crisis, government intervention is an urgent need but in reality this has yet to appear strictly. According to the conventional rhetoric, comprehensive policy measures as part of government intervention entail an appreciable price regime but when abnormal price increase is a result of unfairness captured market and economy; quotidian policies may not incur price reduction up to a satisfactory level within a satisfactory period.
Statistics says, in the last quarter of the running year, the inflation incidence may rise up to 10.5% (Trading Economics) which is 1.3 percentage points more than that of the previous quarter. However, such increased price is making not only the lives of the people, living below the poverty threshold worst off, but also squeezing the middle class. People, who are involved in the informal economy, experiencing the utmost sufferings just to manage subsistence level of food for their family, let alone the other basic essentials. They are acutely being deprived of their deserving entitlements.
The skyrocketing prices do not only increase hardship among people but
also accrue macroeconomic imbalance inactivating the market mechanisms,
for which country's' overall development can be hampered to retain in
the long run.
Yet, our constitution contains the provision of emancipation from disparity and meeting the basic needs for all (Article- 12 and 16). Besides, belonging to a mixed economy, the spirit of socialism should not be left unacknowledged. As price gouging is directly shrinking the purchasing capacity of the middle and low income people, is pushing the inequality frontier to a higher sphere. This situation can be addressed as shadow famine (while a large portion of people are compelled to accept worse or disliked things sacrificing their desired ones or are starving). Such gouging can crucially hinder the attainment of sustainable development goals (SDGs) withal. In this case, SDG-2, SDG-3, SDG-4 refer to zero hunger, good health and wellbeing and quality education respectively, are going to directly be adversely affected. Therefore, curbing the living costs as quickly as possible is undoubtedly one of the noblest responsibilities of the government. Artificial and unfair tactics should never let attain triumph over the government initiatives to protect the innocent commons, national peace and development. This unethical and inhumane practice of price gouging has long been considered as crime even punishable crime in the global arena. But in Bangladesh, a reversed scenario is observed. Here, such unfair activities have long been nurtured under political umbrella. It is true that, this problem cannot be nudged so easily but strict government initiatives can dismantle such syndicates.
It is a matter of sorrow that, we have special power act, consumer rights protection act but all these are stick-in-the-mud. Mere monitoring activities that the government is conducting now-a-days, is not enough. Unless and until these acts are activated stiffly for a long period along with unsparing, I -situ vigilance stance of the legal authority, it will not be feasible to dismantle any sort of syndicates. Culprits must be sued, arrested and punished being irrespective of their political affiliation, hegemonic power or higher position they hold. The government needs to fix a maximum threshold of selling prices from initial stage to mark up stage.
The skyrocketing prices do not only increase hardship among people but also accrue macroeconomic imbalance inactivating the market mechanisms, for which country's' overall development can be hampered to retain in the long run. Without making Basic essentials available to all, basic rights will remain starving and hence, inclusiveness will not be possible to be achieved. Being entitled to the basic essentials or being able to command higher consumption bundle is basically what, the mass people paradoxically mean by the occurrence of positive change. Therefore, paying heed to meet the very basic needs by which people live should be one of the main concerns of the government.
The writer is a former lecturer, Daffodil Int'l University