Commerce minister unhappy with commodity prices, cost of living

Commerce Minister Khandaker Abdul Muktadir today (18 August) said that he is not satisfied with the current cost of living and commodity prices, stressing that reducing prices requires improvements beyond market monitoring.

Responding to a question about the market situation six months after taking office, he said energy and electricity prices, lending rates, productivity, transport, and infrastructure all influence commodity prices.

He said that Bangladesh's logistics costs account for around 16% of GDP, compared with an international average of about 10%. "As a result, additional costs are incurred in transporting goods from production centres to retail markets, with the burden ultimately falling on consumers."

Improved transport connectivity, uninterrupted and affordable energy, and a more efficient supply chain could create opportunities to reduce prices, the minister said while talking to reporters after a meeting with a visiting Confederation of Indian Industry (CII) delegation at the ministry in Dhaka, according to a press release.

He urged people not to expect immediate results, saying developing the necessary infrastructure and energy capacity takes time.

The government is working to ensure new LNG infrastructure, gas supplies, and uninterrupted operations at power plants, Muktadir said.

On seasonal price hikes of green chillies, onions and vegetables, the minister said supply shortages emerge during certain periods of the year despite increased domestic production.

To reduce these seasonal gaps, the Agriculture Ministry is taking initiatives to expand planned production, including contract farming, he added.

Muktadir said simultaneous improvements in energy, infrastructure, production, and supply systems would help stabilise the market and gradually reduce the cost of living.