Traders call for stopping extortion on highways to rein in commodity prices

Highlights: 

• Traders call for ending police extortion on highways during Ramadan
• Commerce Minister Tipu Munshi assured traders that no goods-laden truck will be stopped by police on roads
• There will be no shortage of essentials during Ramadan, said the minister, urging consumers not to panic-buy 

Controlling the prices of essential commodities will not be possible if police continue to extort money from goods-laden trucks during the upcoming month of Ramadan, said trade leaders during a task force meeting regarding commodity prices.

"Police extortion increases on roads and highways during Ramadan, which in terms raises the prices of goods. Besides, there is a gap in dollar rates. Traders import goods by buying per dollar at Tk110 but the government-fixed rate is Tk106. So, this additional Tk4 per dollar will be taken from consumers," said Mostofa Azad Chowdhury Babu, senior vice president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in the meeting, chaired by Commerce Minister Tipu Munshi, at the ministry on Sunday.

In response to traders' allegation of extortion, an official of the Public Security Division, who was present in the meeting, said law enforcement agencies, including the patrolling police and industrial police, will not extort drivers of cargo trucks during Ramadan.

Commerce Minister Tipu Munshi also assured traders that no goods-carrying truck will be stopped on the road during Ramadan. "I have talked to the Ministry of Home Affairs about this issue, and will talk more, if necessary," he said.

Assuring that there will be no shortage of essentials during Ramadan, the minister urged consumers to refrain from buying a lot of goods at a time out of panic.

"We have stored 1.5 times more sugar and edible oil than the market demand in Ramadan. There are more goods in the pipeline. A letter will be sent to the National Board of Revenue along with port authorities concerned to release these goods quickly," Munshi said, adding that there will be no shortage of goods and prices will also remain stable if consumers do not panic-buy.

The commerce minister also informed that sugar prices will go down by Tk5 per kg soon. The price drop will come into effect in seven days. 

The government slashed duties on sugar imports last month following which the retail price is expected to go down, he said.

Earlier, the government cut duties on sugar imports to rein in the price of sugar ahead of Ramadan. The regulatory duty has been reduced by 5% to 25% on sugar imports.

"There is no reason to increase the price of oil and sugar beyond the government-fixed price. Due to the iftar party, the demand for these products may increase slightly, but there will be no crisis," Munshi said.

The import of onion has been suspended for the betterment of local farmers, the minister said, but imports will be allowed if prices rise. Moreover, eggplant, cucumber, poultry, and lemon prices usually increase during Ramadan. So, no truck carrying these goods can be stopped on the roads.

When asked about the reason for the price hike of poultry and eggs in the market, the minister said, "These are not the affairs of the commerce ministry. It is the responsibility of the Ministry of Fisheries and Livestock to determine and control the prices of poultry and chicken."

In the meeting, Commerce Secretary Tapan Kanti Ghosh said the mobile courts will not harass traders during Ramadan. However, if anyone tries to hoard products or manipulate the market, the government will take action. Various government agencies will start market monitoring from Monday.

The representative of the Public Security Division said initiatives should be taken to ensure that the products in the pipeline reach the market quickly. 

Requesting the commerce ministry to ensure adequate supply of goods, a representative of an intelligence agency said, in the last two years, most people refrained from holding iftar parties in Ramadan due to Covid. But more parties will be held this Ramadan which will increase the demand for essential products. 

Representatives of various businesses and senior officials of relevant ministries and organisations of the government were present at the meeting.