Centre for Policy Dialogue (CPD), a private research organization, in a study revealed that prices of different types of rice are much higher in Bangladesh than in Vietnam, Thailand and other countries.

Similarly, prices of flour, sugar, edible oil, onion, powdered milk, eggs and meat are much higher than the international market, the study said.

“Prices of essential commodities have skyrocketed in Bangladesh. But inflation in the international market is not the only reason for price hikes,” said Dr Fahmida Khatun, Executive Director of CPD.

Also read: Dishonest traders raising prices of essentials: Food Minister

She came up with the remarks while addressing CPD’s media briefing titled 'Bangladesh Economy in the changed global context', held at its office in Dhanmondi, Dhaka on Sunday.

Dr Fahmida presented two research papers on 'Skyrocketing prices amid stable inflation?’ and 'Changing global scenario and Bangladesh Economy: what should be the policy stance?’ on the occasion.

Professor Mustafizur Rahman, distinguish fellow CPD, Dr Zahid Hossain, former lead economist, World Bank, Dr Shah Mohammad Ahsan Habib, BIBM, Professor M. Tamim, Dr Tawfiqul Islam Khan, CPD’s senior fellow, among others, spoke in the program.

The speakers focused on the essential commodity prices' situation, external sector, energy and power, banking sector and budget management.

Presenting a research paper, Fahmida Khatun said that the prices of essential commodities are skyrocketing. But food inflation is controlled in government accounts, which is not matching with economic theory.

From October 2021 to January 2022, the government entity calculates inflation constant at 5.3 percent.

At this time inflation of some particular products was between 6 percent to 30 percent during that time while the inflation of food remained constant at 5.3 percent. Dr Fahmida questioned how that is possible.

Professor Mustafizur Rahman said the export volume has not grown compared with the huge import; resulting in a trade deficit of $ 10 billion.

Dr Zahid Hossain said the government budget expenditure is not growing despite surplus money.

He urged a policy to fix up energy prices in the country for sustainable investment.

For curbing inflation CPD suggested policy attentions at the government policy makers considering its more adverse impact on the vulnerable and marginalized groups.

“All available policy tools should be utilized to control food inflation, including exempting duties and taxes on essential commodities both at domestic and import levels, extending social safety net programmes and raising income tax exemption level,” the CPD said.

Stability of exchange rate must be ensured as the value of taka against major currencies should be stabilised in view of its inflationary implications.

An independent banking commission should be formed on an immediate basis to mitigate the disarrays within the sector and loan recovery should receive the highest attention.

Despite huge imports, the export did not grow. But this is not an accurate picture compared to reality. The pressure on low-income people is mounting. Non-food inflation has also risen sharply, the CPD suggestion urged to change the situation.

The need for strong market intelligence is critical as unscrupulous market players have always been active to take advantage of difficult periods, by stockpiling and creating artificial crises in the market, CPD study said.

Efficient market management through close monitoring and supervision will be critical to keep the commodity prices under control during Ramadan and beyond.

Also read: LGRD minister blames soaring prices of essentials on pandemic & war

The volume of sale of essential commodities through the open market system (OMS) should be increased. Distribution of these commodities must be managed effectively and without any corruption, so that the eligible people have access to these items at low prices.

The government should provide direct cash support to the poor, enhance social protection for low-income families, and extend stimulus to the small businesses for their survival during difficult times, said CPD.