Is the task force easing price pressure in the essential commodity market?

A shopper says he was hopeful when the task force was announced but now feels disillusioned

The task force, established to stabilise prices of essential goods and reduce price disparities across production, wholesale, and retail stages, has left consumers questioning its real impact on the market over the past month.

Despite its efforts, inflation—particularly in food prices—remains unrelenting, with consumers now spending more than before.

This lack of visible change has sparked frustration among buyers.

Md Sakin Hossain, a regular shopper at Karwan Bazar, told bdnews24.com: “There was a lot of publicity when the task force was formed. I thought prices would finally come down since committees were set up to work across all districts. But prices haven’t decreased.”

Task force members insist the initiative has produced positive results, asserting that prices are beginning to decrease.

However, government data indicates otherwise.

Food inflation has surpassed 12 percent, according to Governor Ahsan H Mansur, who said in a recent briefing that controlling inflation may take up to 12 to 18 months.

He pointed out that rising agricultural production costs are a contributing factor to price increases.

TASK FORCE RESPONSIBILITIES

The order to establish the task force on Oct 7 assigned it several duties, including:

Regular inspections of markets, large warehouses, cold storage, and other parts of the supply chain to ensure prices remain reasonable

Minimising price differences among production, wholesale, and retail levels and holding discussion meetings with all stakeholders involved

Submitting daily reports to the commerce ministry’s price review and forecasting cell and the Directorate of National Consumers' Right Protection’s central control room

PRICE INCREASES IN ESSENTIAL GOODS

Since the task force began its work a month ago, the price of essential goods like potatoes, onions, rice, and loose soybean oil has climbed further.

Specifically, prices per kilogramme have risen by Tk 15 to Tk 20 for potatoes, Tk 4 to Tk 5 for rice, Tk 10 to Tk 12 per litre for soybean oil, Tk 25 to Tk 35 for onions, and Tk 20 to Tk 40 for garlic.

For low-income households, who allocate most of their food expenditure to these staples, such price hikes are increasingly burdensome.

The task force has not issued any announcements about reducing profit margins across wholesale, retail, or production levels, nor has it provided any details on preventing excessive profit-taking.

This price surge persists despite the government’s efforts to lower import duties on rice, onions, potatoes, and edible oils.

Though discomfort over vegetable prices has eased with the supply of winter produce, vegetables are still more expensive compared to the same period last year.

According to the state-owned Trading Corporation of Bangladesh, or TCB, egg and broiler chicken prices remain high, although egg prices have dropped considerably over the past month.

In August, food inflation on a point-to-point basis was 11.36 percent, rising to 10.40 percent in September and climbing to 12.66 percent in October.

Thus, if food expenses amounted to Tk 100 last year, this October that cost rose to Tk 112.66.

On Aug 25, Chief Advisor Muhammad Yunus, in a speech to the nation, said: “Controlling inflation is a key goal for the interim government.”

However, after a recent meeting at the finance ministry on Nov 7, Governor Mansur said it may take around one and a half years for inflation to return to single digits.

Explaining the prolonged timeline, he remarked: “Countries experiencing inflation situations like Bangladesh’s have seen this rate decrease only gradually.”

“Global experience shows that controlling inflation, even with tightened monetary policies and other measures, takes 12 to 18 months. We must remain patient and allow time for policy implementation. It’s not a matter of two to three months,” he added.

COMMENTS ON THE TASK FORCE'S ACTIONS

Alauddin Hossain, an onion and potato seller at Karwan Bazar, said: "I don’t know about the task force. I saw officers coming to inspect the market a while ago. I heard they are issuing fines. But instead of coming to us, they should go to where the prices are rising. They should focus on those who are involved in cold storage."

Mohammad Sujan Chowdhury, general secretary of the Karwan Bazar Wholesale Vegetable Market Association, said: "The task force had a meeting, but I don't know much about its activities since then. They need to meet with everyone."

Prof Mohammad Akteruzzaman, an agricultural economist and former dean of the Faculty of Agricultural Economics and Rural Sociology at Bangladesh Agricultural University, told bdnews24.com: "There is little supervision at the grassroots level. Potatoes are available in the market, but prices are still rising. When a directive is issued, it takes time to implement. There’s a lack of coordination. While some areas in Dhaka are monitored, other districts aren’t receiving the same attention. Monitoring needs to extend to the grassroots level for real change. Market management committees should be involved, and accountability must be ensured for a greater impact."

SM Nazir Hossain, vice president of the Consumers Association of Bangladesh, or CAB, a non-governmental organisation working for consumer rights, said: "The task force is not functioning as expected. The monitoring approach is not being followed properly. They conduct raids at just a few shops for 15-20 minutes. A more stringent approach, with higher fines, would have been more effective."

He added, "Earlier, the Directorate of National Consumer Rights Protection imposed heavier fines, but now, with the task force led by the deputy commissioners, the fines have been reduced. Fines of Tk 2,000 or Tk 5,000 are not enough. There needs to be more strict action."

CLAIMS OF SUCCESS

Each district has a 10-member monitoring committee led by the additional deputy commissioner, or ADC, and the assistant director of the Directorate of National Consumer Rights Protection as the member secretary. Two student representatives and CAB are also involved.

Mahfuza Matin, the ADC of Cumilla, claimed that they have been successful.

She told bdnews24.com, "Prices have come down because of our actions. I can say that prices have decreased due to our monitoring. We check price lists, expiry dates, and receipts in the market, and if there are issues, we impose fines."

Atiya Islam, a task force member and deputy director of the directorate, said: "The task force is operational in all 64 districts, with multiple teams working in each area every day. The continuous nature of this activity is helping control commodity prices."

When asked about the control of commodity prices, she said, "Egg prices are decreasing. In early September, they were Tk 180 per dozen, but now they've dropped to Tk 150."

Atiya added, "The rise in prices across the board has been significantly curtailed due to the task force's activities. The rice market is also stabilising. The import duties have been reduced, and imports will be increased as per demand."

The claim regarding a reduction in rice prices, however, is unclear, as TCB data shows a price increase of around Tk 4 in the last month.

Mohammed Daudul Islam, joint secretary of the commerce ministry (IIT), said: "The task force is functioning well, and its activities are ongoing smoothly."

[ Writing in English by Arshi Fatiha Quazi]