Biz leaders call for watch on big importers, extortionists to keep Ramadan prices stable

Business leaders today (9 February) demanded stricter watch over large importers and extortion networks, warning that harassing small retailers will not help keep prices of essential commodities stable ahead of Ramadan and the upcoming national election.

They blamed macro-level extortion by a section of the police and administration for market instability, saying such practices directly push up prices of daily essentials. 

The speakers urged the authorities to increase monitoring on major importers, mill gates and key supply-chain points rather than conducting frequent drives against small shopkeepers.

The demands were raised at a consultation meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) to review the import, stock, supply and price situation of essential commodities ahead of Ramadan.

The meeting was chaired by FBCCI Administrator and Additional Secretary to the Ministry of Commerce Md Abdur Rahim Khan.

Addressing the meeting, Abdur Rahim Khan said that, as in previous years, FBCCI would monitor the market during Ramadan to ensure normal supply and reasonable prices so that consumers can buy essential goods at fair rates with the cooperation of businesses.

He noted that the volume of letters of credit (LCs) opened this year is significantly higher than last year, describing it as a positive sign for market stability. He also urged all stakeholders to remain cautious and restrained so that no unexpected or abnormal behaviour disrupts the supply chain.

Mohammad Imran Master, president of the Bangladesh Raw Materials Wholesale Traders Association, said perishable goods cannot be controlled by syndicates due to their nature.

"Supplies of onions, chillies, brinjal and coriander are adequate.

Prices may rise slightly during the first few days of Ramadan if demand increases suddenly, but that will not be long-lasting," he said.

He added that there could be some pressure on lemon supply, though no major shortage is expected overall.

Golam Mowla, general secretary of the Bangladesh Edible Oil Wholesalers Association, criticised enforcement agencies for targeting small retailers every Ramadan. "NSI, DGFI or the district administration raids small shops as soon as Ramadan begins. For selling at eight annas or one taka more, small traders are fined hundreds of thousands of taka," he said.

"But there is no effective monitoring of large importers or at the mill-gate level, where hundreds of crores are siphoned off. Oversight must be ensured at the higher level."

Market observer Kazi Abdul Hannan warned that large-scale extortion could intensify during the transition period of Ramadan and the national election. He alleged that in some markets, traders are forced to pay lump-sum extortion ranging from Tk5 lakh to Tk10 lakh to district and upazila-level administration and police. "This extortion has a direct impact on commodity prices," he said.

Highlighting the plight of poultry farmers, Poultry Association adviser Khandaker Monir Ahmed said producers are on the brink of collapse as selling prices have fallen far below production costs. "Against a production cost of Tk10.58 per egg, farmers are being forced to sell at Tk5–6," he said.

Criticising the government's subsidised egg sales, he warned that fixing prices below production costs would eventually destroy the industry.

Consumers Association of Bangladesh (CAB) General Secretary Md Humayun Kabir Bhuiyan said 10 monitoring teams will operate daily across Dhaka during Ramadan to oversee market conditions. He urged traders to preserve cash memos and sell goods at reasonable profit margins, warning that those creating artificial shortages through unethical practices would face strict action.

Business leaders at the meeting also proposed withdrawing additional duties on dates and suggested importing frozen meat to address potential protein shortages during Ramadan.

Speakers agreed that if proper monitoring is ensured and extortion is curbed, there is no rational reason for prices to rise during Ramadan this year.

Representing Meghna Group, Deputy General Manager Taslim Shahriar said there is no problem in the sugar market. "We are supplying a record volume of sugar. Last year sugar was priced at Tk130 per kg; now it is Tk92–93 at the mill gate," he said.

He added that despite fluctuations in the international market and some port-related challenges due to long holidays, sufficient stock is in the pipeline and the market is expected to remain stable during Ramadan.

FBCCI former director Gias Uddin Khokon painted a grim picture of the overall business environment, alleging widespread bribery and harassment.

"To obtain a gas connection for industry, bribes of up to Tk5 crore are demanded. Although bank interest rates were supposed to decrease, they have increased instead," he said. "With extortion, bribery and harassment at every step, businesses cannot control prices. Market monitoring should have started much earlier."

Representatives from government agencies, private sector bodies, business owners' associations and various trade organisations were present at the consultation meeting.