Fixing prices of local produce not proving effective: Commerce secy 

Fixing prices of locally produced agricultural products is not proving effective in addressing market crises, Senior Commerce Secretary Tapan Kanti Ghosh acknowledged at a seminar in Dhaka today.

However, price fixing of imported goods is working, he said at the seminar, titled "Impact of syndicates and competition on prices of daily commodities."  

"Instead of fixing prices, it is more important to make the Competition Commission more effective," the secretary said at the event hosted by the International Business Forum of Bangladesh.

State Minister for Commerce Ahsanul Islam Titu said, "I believe fixing maximum prices for imported goods could solve many market problems. We've seen success stabilising oil prices this way." 

Some suppliers manipulate supply to create crises, Titu said. Intervention is crucial in such situations, which the government is doing. 

He further said that within two days 1,650 tonnes of onion will enter the country from India out of 50,000 tonnes expected. The onions will be sold through TCB at a reasonable price, he added.

Regarding onions from India, the commerce secretary said even if the neighbouring country stops onion exports, it won't affect Bangladesh as seasonal onions arrive in March.

While presenting the main article in the seminar, Helal Uddin Ahmed, professor of Economics Department of Dhaka University, said the interests of both consumers and producers should be looked at. 

"If prices drop now due to instability, they might rise later. However, managing the market based on supply and demand while safeguarding both consumer and producer interests can stabilise it," he suggested. 

AHM Shafiquzzaman, director general of the Directorate of National Consumer Rights Protection (DNCRP), said many factors affecting market prices are unseen and academic discussions may not fully address these complexities. 

For instance, he said, broiler chicken prices rose to Tk300 during Ramadan but dropped by Tk100 after a corporate meeting. "This suggests potential profit manipulation." 

Besides, there's uncertainty regarding market demand, he added. For example, conflicting data on potato production raises questions about why there's still a potato problem despite apparent surplus.

Muhammad Abdul Majid, former chairman of the National Board of Revenue, syndicates might exist in the market, as they do in many countries. 

"However, it's crucial to keep these syndicates under control. They shouldn't be allowed to influence or manipulate the government. Instead, the government should regulate them to maintain control," he added.