Businesses see supply disruptions, not pay scale, driving prices up
The Consumers Association of Bangladesh called for curbing the dominance of middlemen in the market
Fuel shortages, production and supply-chain disruptions, difficulties opening letters of credit (LCs) and unchecked middlemen, rather than the newly approved pay scale, could drive up prices of essential commodities, businesses said today (1 September).
They said prices of sugar, edible oil, pulses, flour and refined flour should remain stable if supply is adequate and aligned with demand.
The observations came at a views-exchange meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and businesses involved in importing, wholesaling and retailing essential commodities at the federation's Motijheel office in Dhaka. FBCCI Administrator Md Fazlul Hoque chaired the meeting.
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The discussion came amid concerns that the new pay scale could push up prices of essential goods.
Wholesalers and retailers said maintaining adequate supplies would be key to price stability and called for uninterrupted fuel supplies to production-oriented factories.
Mill owners said gas and electricity shortages were already disrupting production, while difficulties opening LCs were creating additional challenges for essential commodity importers.
Gholam Mawla, general secretary of the Moulvibazar Business Association, said the market could not remain stable unless imports and mill production continued without disruption. He called for urgent measures to resolve the fuel crisis and LC-related complications.
Mill owners' representatives also said domestic sugar prices had remained unchanged despite higher international raw sugar prices.
Traders called for stronger oversight across the supply chain to prevent unnecessary price increases.
Md Zakir Hossain, general secretary of the Bangladesh Supermarket Owners Association, suggested reducing the number of times products change hands before reaching consumers to lower supply-chain costs.
Business leaders also called for stronger price monitoring at wholesale and retail markets and mill gates, as well as law enforcement intervention where necessary to prevent harassment along the supply chain.
Md Abul Kalam Azad, organising secretary of the Consumers Association of Bangladesh, urged the government and businesses to ensure uninterrupted supplies and curb the dominance of middlemen.
The meeting also discussed government measures to keep essential commodities affordable.
A Trading Corporation of Bangladesh (TCB) representative said the state-run agency was selling essential commodities at subsidised prices to nearly one crore families through its family card programme. A Directorate General of Food representative said subsidised rice was being distributed to low-income people under the Food-Friendly Programme.
Businesses, however, urged TCB to strengthen its capacity to import directly or source from alternative suppliers rather than relying mainly on domestic companies.
In his closing remarks, Fazlul Hoque said the recommendations would be documented and placed before policymakers. He urged businesses to cooperate to ensure the new pay scale does not lead to unjustified price increases.
