AN INCREASE in essential goods prices before Ramadan has become typical. Every year, traders increase prices of onions, soya bean oil, lentil and other items for one reason or another. This year appears to be no different. As Ramadan nears, prices of onions and soya bean oil have significantly increased. In the past week, onion price increased by Tk 10–15 a kilogram while soya bean oil price increased by Tk 4–5 a litre. Traders say that the onion price increased because of supply shortage as the stock of early harvest nears an end and it will take two more weeks for the late harvest to hit the market. Soya bean oil wholesalers, meanwhile, blame the increase on the international market that forced them to increase the price locally. Given that traders always try to increase goods prices popularly used for iftar items, the recent increase in prices of onions and oil indicates that the government has once again failed to make any intervention to keep the market stable.

The demand for onions, lentil, aubergine, soya bean oil, sugar and other such items increase every Ramadan. The harvesting season of onions also has an established pattern. Commerce ministry data of 2019 showed that in Ramadan, demand for sugar and edible oil almost doubled while demand for onions increased by about 150 per cent, chick peas 860 per cent and lentil nearly 113 per cent. The case of price increase for supply shortage is, therefore, a result of monitoring failure on part of the government. Similarly, the government is expected to closely monitor the international market and act accordingly to keep the local market stable. The Consumers Association of Bangladesh has for long underscored the importance of market monitoring and urged an improved government capacity in this regard. In previous years, it was reported how some traders manipulated the market and created an artificial shortage, considering the increased demand of iftar items. The ministry concerned should inquire into the recent price increase to see if that has been the case and consider setting a price ceiling for goods.

While the government must take early steps to tackle the situation, it must also take long-run initiatives to prevent market manipulation in Ramadan. The government must invest in developing a market information system that monitors accurate and timely data of production, supply stock and market prices as well as information related to other factors that may affect pricing of goods. There should be a fool-proof mechanism through which the government can control trading syndicates. In addition, it must ensure that legal action is taken against unscrupulous traders by not looking into partisan interests.