Government warns traders over hiking commodity prices

The government has warned traders against manipulating commodity prices during the month of Ramadan.

“We don’t want you to incur losses but want to protect consumers’ interest at the same time,” Commerce Minister Tofail Ahmed told businessman on Thursday during a meeting at the ministry.

He said the government stresses discussions with businesses to keep prices under control rather intervene in a market economy.

Referring to the slapping of a huge fine on a sugar wholesaler in Chittagong on Wednesday, Tofail said others trying to extract extra profits will face similar consequences.

Hajji Mir Ahmed Traders of the port city's biggest wholesale market at Khatunganj was fined by Tk 2 million for selling sugar at Tk 58 a kilogram after buying at Tk 46 from refiners.

Tofail accused some businessmen of creating an ‘artificial crisis’ in sugar. “We all now know that wholesalers buy sugar at Tk 48. Strict actions will be taken against manipulators.”

He claimed that prices of all commodities, except for chickpeas and sugar were ‘normal’.

The minister said there were ‘logical reasons’ for a hike in the prices of these two commodities.

“The government raised tariff on sugar imports to safeguard local industries, but still it should be below Tk 60 per kg.

“Refiners sell it at Tk 48; if wholesalers make a profit of Tk 2-3 and retailers Tk 5, still it should not be more than Tk 57-58,” he said.

Asked whether the government will fix the price, Tofail replied, “That can’t be done in a market economy. It’s not the commerce ministry’s job and it doesn’t work as well.”

He, however, urged the consumer rights department to strengthen market monitoring.

The minister said the price of chickpeas in the international market was now Tk 73 per kilogram, up from Tk 52 a year ago.

The minister said that the price of chickpeas in the international market was Tk 73 per kilogram at present, up from Tk 52 a year ago.

“Its demand goes up during Ramadan. There is a one million tonne deficit of chickpeas in India.

“Australia has a surplus of one million tonnes, but India has procured it. But I think the price is coming down now,” said Tofail.