PRICE HIKE

Price hike, the greatest concern of late, which is spreading at an alarming rate. So, what is price hike?

We live in a society, where we need food, accommodation, medicine and other goods as well. And when the cost of these goods increases from its original price, then it’s called price hike. In brief, a percent increase in the cost of goods or services is known as price hike. Like, a 5% price hike on sugar means the price of sugar has increased by 5%.

Since the price hike has become a problematic phenomena, there must be quite big reasons behind it. But, what and who are the reasons?

First of all, one of the key reasons is COVID-19. As we know, during the COVID-19 pandemic, import and export were really damaged because the shipping system in many countries was interrupted. As a result, the price of a particular product increased due to a shortage of it in the market. IFPRI (International Food Policy Research Institute) posted a blog, where they presented a graph published by FAO (Food And Agriculture Organization) which says, international prices for major food items rose to a level near the heights of the global food price crisis of 2007 – 08 and 2010 – 11.





According to the graph, it is crystal clear that after 2019, the COVID – 19 years the global price has risen at an alarming rate.

However, it is not just COVID. There are some huge syndicates of smuggling and black marketing. Let’s talk about the EDIBLE OIL.




In the image, the rising price of BOTTLED SOYBEAN OIL is shown with respect of time in Bangladesh. And the main culprit behind this is some dishonest businessmen. The biggest
syndicate of this edible oil is in KHATUNGONJ, CHITTAGONG. The well known issue there is DO (Delivery Order), which was introduced in 2011. We mainly import edible oil from other countries like Argentina. Turkey, Saudi Arabia. In this DO system, when the oil is imported they get a slip however, they don’t collect it immediately, rather they wait for the market price to rise and then they sell this slip to other businessmen in exchange for some extra money than the money he had received, and then the person to whom he sold it, sells to another following the same way. This is called SLIP TRADING. As a result of this slip trading, the intermediary businessmen make a profit of TK 250 – 500/Maund. And as they don’t collect the oil from the factory immediately, there occurs a shortage of oil. In consequence, the price skyrockets.


The impact of the price hike is undeniable. The worst sufferers of this are the lower middle class and the lower class peoples.


                                                                              (The Daily Star)


As the price of daily goods like eggs, rice, chicken is skyrocketing day by day, they can’t buy enough goods. As a result, the buyers as well as the sellers are facing big problems.



This price hike has to be controlled in order to save these peoples and our economy. Therefore, the Government, NGOs as well as the public should come forward with initiatives like – increase in production, work on price ceiling and price floors, strict use of laws in terms of punishment and a well structured budget.

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