Flawed policies, not syndicates, behind market instability: Intellectual Property Forum
The Bangladesh Intellectual Property Forum (BIPF) today (9 March) objected to the notion that price fluctuations in essential commodities automatically indicate market "syndicates."
During a roundtable on "Price of Commodities, Market Management and Competition" in Dhaka, BIPF representatives attributed market mismanagement primarily to flawed government policies.
Citing price controls within a free market system as an example, they argued for alternative approaches. Notably, the discussion shifted to critique the Competition Act, emphasising the use of "cartel" instead of "syndicate."
Keep updated, follow The Business Standard's Google news channel
Barrister Hamidul Mishbah, founder of BIPF, criticised the Bangladesh Competition Commission's decisions.
"Verdicts alleging collusion lack evidence. Unfairly punishing manufacturers discourages investment and harms employment. Many may reduce production," he said.
He further emphasised the need for proper legal proceedings and the use of the term "cartel" instead of "syndicate" in the Competition Act.
Mohammad Helaluddin, an economics professor at Dhaka University, argued against temporary market policies like tariff reductions. He advocated for proactive measures to prevent market instability and eliminate duties on essential goods like rice and onions.
He acknowledged various factors influencing price increases, cautioning against attributing them solely to syndicates. He criticised the government's policies for contributing to price hikes and argued for a market-driven approach to regulating the number of companies in each sector.
However, Gowhar Nayeem Wahra, a writer and researcher, expressed his disagreement. He felt the discussion prioritised the Competition Act over core issues like commodity prices and market management.
He highlighted the neglect of rural farmers and the system's pressure to sell paddy prematurely. Gowhar urged a focus on addressing systemic problems rather than just blaming syndicates.
Khalid Abu Naser, former director of the Bangladesh Competition Commission, acknowledged the increasing market centralisation, which creates opportunities for syndicates. He noted that factors like the high exchange rate also contribute to current market volatility.
Notably, Hamidul Mesbah claimed that BIPF works as a think tank as well as representing civil society.
