La Semaine Dernière A Mes Yeux

(17 octobre --- 23 octobre)

Cliquez pour voir/cacher

Ma Semaine Gastronomique

Date	Petit déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
17	Pain,Œuf	Riz,Épinard d'eau,Poulet,Citrouille	Pain,Poulet	Goyave,Prune à cochon,Banane, Lait,Sweets
18	Pain,Poulet,Œuf	Riz, Taro,Poulet,Soupe aux lentilles	Pitha	Pomme,Prune à cochon, Banane
19	Pain,Gourde bouteille,Œuf	Riz,Poulet,Œuf	Pitha,Riz,Soupe au poulet	Pomme,Prune à cochon, Banane
20	Pain,Œuf	Riz, Kajari poisson,Meni poisson,Soupe au vigna mungo	Pitha	Pomme,Prune à cochon,Banane
21	Pain,Papaye-Lentilles,Œuf	Riz,Papaye-Lentilles,Kajari poisson	Puri	Goyave,Lait, Banane
22	Pain,Papaye-Lentilles,Œuf	Riz, Yard long beans,Épinard malabar,Soupe aux lentilles	Pois chiches,Riz gonflé	Goyave,Yaourt sucré
23	Pain,Yard long beans,Œuf	Riz,Purée de cumin noir,Feuilles de citrouille, Yard long beans,Soupe aux lentilles	Pois chiches, Riz gonflé, Pianju	Goyave

A Recipe To Keep Economy On Steroids

A recipe to keep economy on steroids, Policies contradict as inflation deteriorates.

Bangladesh Bank has decided to publish Monetary Policy Statement (MPS) quarterly. It is indeed a good move. It will allow govt to correct monetary policy measures quickly instead of half yearly. It will also help to monitor the impact of its monetary policies quarterly, facilitating corrective decisions at the earliest possible time.

The latest MPS (Oct-Dec 2027) keeps the policy rate same at 9.50%. It is due to inflation easing at 8.26% in August. However, inflation soared to 8.34% in September. And the fuel price hike and pay hike in general cause pressure on inflation. MPS acknowledges that the recent pay hike, which will annually cost govt additional $8.5 billion, is likely to worsen inflation. In its latest world economic outlook, the IMF projects that inflation in Bangladesh will hover around 10.9% in 2027. This provides strong context for increasing the policy rate and pursuing a tight monetary policy in the Jan-Mar 2027 period.

The MPS reveals that in the first two months of FY 27, there was deficit in overall balance due to deficit in financial account. This highlights that govt did not manage enough foreign credit and aid to finance budget deficit. If this trend continues, then govt has to borrow more from the banking sector to finance budget deficit. This will further curtail credit to private sector, which registered 4.75% growth in August.

Weak revenue generation also makes borrowing from the banks inevitable. Banking sector on the other hand is overwhelmed by swelling of Non Performing Loans(NPLs), which is more than 34% of total outstanding loan.

Meanwhile, the central bank governor Mostaqur Rahman said the govt would require Tk 60000 crore for at least 5 years(see "Banking sector recovery requires Tk 60000 crore for 5-8 years: Governor", The Business Standard, October 10,2026 ,https://www.tbsnews.net/economy/banking/banking-sector-recovery-requires-tk60000cr-annually-5-8-years-governor-1568051). The govt said the money would come from the budget. For a moment, think a bunch of thugs plundered Tk 100 from your banking system and got away with the money. The govt could not recover the money but inject Tk 100 more into the banking system. This money either would come from the taxpayers or from govt's money printing machine. This literally means taxpayers are paying for the crime of bank plunderers. If money stems from printing the required sum, then this means more money is in circulation in the system and govt is literally paying for the crime. In this situation, inflation will deteriorate, further complicating the economic recovery.

If you look at the total figure govt intends to inject into the banking system, you will be stunned as the figure stands at Tk 3 trillion ($ 24.39 billion). If govt is really serious about this, I do not think it will solely depend on taxpayers' money. Why? The revenue mobilization is weak and downgraded growth forecast and subdued economic activity do not provide room for optimism that govt will generate enough revenue to meet its expenses. This means support to the banks will partly come from the taxpayers' money and partly come from printing money. Money printing will account for a large part of this banking support. This means Bangladesh's economy will largely be on steroids! And both the taxpayers and govt are likely to pay for the crimes of bank looters if govt really goes ahead with its banking support plan.

This line of thinking also lays bare contradictory policies govt is pursuing. The pay hike will require additional $8.5 billion every year. The bank support will require further $4.8 billion annually. Together the two will make the additional cost $13.3 billion per year. Even if the one-third ($4.3 billion)of this extra cost comes from the taxpayers' money, the rest will either come from printing money or from foreign borrowing. Since commitment of foreign assistance is drying up, there is greater likelihood of money printing to finance the rest ($8.86 billion) of the additional cost.

This approach is clearly monetary expansion while the central bank is pursuing a contractionary monetary policy. This is where policy credibility of the central bank is called into question. Central bank's monetary policy focuses on fighting inflation, tilting towards tight monetary policy. Meanwhile, the governor hints at an annual bank support program, lacking clear financing policy and indicating money printing measures. What signal does the market get? Govt should focus on containing inflation and discard the bank support program. Bailing out some others' mistakes/ crimes is not job of taxpayers and govt. Inflation penalizes people and govt, raises borrowing cost and subdues the economy. It is not the interest rate that is to blame. So inflation-fuelling measures should be stopped and efforts should be doubled to contain the inflation.

La Semaine Dernière A Mes Yeux

(10 octobre --- 16 octobre )

Cliquez pour voir/cacher

Ma Semaine Gastronomique

Date	Petit déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
10	Pain,Poulet,Œuf	Riz,Petit poisson	Pain,Soupe au poulet,Pita	Pomme,Saboo
11	Pain,Œuf,Soupe au poulet	Riz, Poulet	Pain,Lait	Pomme,Saboo
12	Pain,Soupe aux lentilles,Œuf	Riz,Ruhi,Purée de banane verte,Soupe aux lentilles	Pain,Soupe aux lentilles	Pomme,Payesh
13	Pain,Œuf,Soupe aux lentilles	Riz, Poulet,Soupe aux lentilles	Pain,Poulet	Pomme
14	Paratha,Pomme de terre,Œuf	Riz,Ruhi,Aïr,Épinard d'eau,Soupe aux lentilles	Riz,Ruhi,Soupe aux lentilles	Pomme,Hog plum
15	Pain,Œuf,Pomme de terre	Riz, Poulet,Soupe aux lentilles,Citrouille	Sticky rice,Lait,Banane	Pomme,Sweets,Banane,Hog plum
16	Pain,Yard long beans,Œuf	Riz,Bata poisson,Pomme d'éléphant, Épinard d'eau,Yard long beans	Sticky rice,Bata poisson,Radis	Goyave,Hog plum,Banane

Consider Greater Good

Import of eggs in summer season, Consider it for welfare reason.

Rising prices of egg give a good amount of trouble to the consumers. Being cheapest source of protein, any price hike in egg causes serous trouble in protein consumption of urban consumers. A dozen is being traded at Tk 165. Such exorbitant prices of egg evidently slash the consumption of egg.

It is pretty common that egg prices soar during summer season. Big poultry farmers claim that Chickens drink lots of water and eat less feed in this time. It results in drop in egg production, causing rise in egg prices. Prices of eggs stabilize in the winter season. Despite this recurrent phenomenon, we see little intervention from the government.

Govt could easily allow import of eggs in the summer season, when egg production dips. Imported eggs could meet up the shortfall in production, stabilizing the price in egg market. Allowing more people to import egg in this 4/5 months greatly address the crisis in the egg market. For some reasons, govt is not in favor of widespread import of eggs. If govt limits import of eggs to urban areas, that will do a great help bringing down the prices of eggs in the summer season.

Since diesel price increased by Tk 20/liter, there is widespread apprehension that prices of essentials will go up,worsening inflation. In this backdrop, eggs and poultry products may witness elevated price in winter season too. Furthermore, Bangladesh imports key ingredients of poultry feed. Corn and soya account for 85% of poultry feed. And poultry feed accounts for 70% of the cost. Any external shock has the potential to increase the import cost of key ingredients of poultry feed, leading to hike the prices of poultry products.

It is reported that chick production is concentrated into the hands of big private Breeders and Hatchers. Govt can intervene here by setting up hatcheries and facilities for poultry feed across the country. Marginalized poultry farmers will avail chicks and poultry feeds at affordable prices. This ,in the end,will help maintain a stable price for poultry products.

Keeping prices of egg and poultry products low is crucial for continuing protein consumption and keeping inflation in check. This is why addressing the soaring egg prices during the summer season is important. Greater welfare is achieved by serving a wide range of consumers. For this reason, widespread import of eggs for 4/5 months of a given year should be considered for greater welfare.

La Semaine Dernière A Mes Yeux

(03 octobre --- 09 octobre)

Cliquez pour voir/cacher

Ma Semaine Gastronomique

Date	Petit déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
03	Pain,Banane,Datte	Riz,Poulet,Taro,Gombo	Sticky rice,Banane Lait	Pomme,Goyave,Hog plum
04	Pain, Pomme de terre, Œuf	Riz,Poulet	Banane	Goyave,Hog plum
05	Pain,Banane,Riz gonflé,Œuf	Riz,Purée de Banane verte,Pomme d'éléphant	Lait,Pois chiches	Goyave,Hog plume,Jambura
06	Pain, Raisin, Œuf	Riz,Soupe au Poulet	Pain,Banane	Goyave,Lait, Payesh
07	Pain,Soupe au poulet	Riz,Soupe au poulet,Radis	Saboo,Mangue	Goyave,Lait,Pomme
08	Paratha,Lait, Œuf	Khichudi, Poulet	Khichudi, Poulet	Goyave,Lait, Pomme,Saboo
09	Pain,Œuf, poulet	Riz,Petit poisson	Soupe au poulet,Pitha	Pomme

La Semaine Dernière A Mes Yeux

(26 septembre --- 02 octobre)

Cliquez pour voir/cacher

Ma Semaine Gastronomique

Date	Petit déjeuner	Déjeuner	Dîner	Snacks,Sucreries,Boissons et Fritures
26	Pain,Œuf	Riz,Ruhi,Yardlong beans,Soupe aux lentilles	Riz gonflé, Yaourt	---
27	Sticky rice,Yaourt,Banane	Riz, Ruhi,Courge amère avec haricot rouge,Purée de pomme de terre	Riz gonflé	Tang,Kalojam
28	Pain,Papaye,Œuf	Riz,Piranha,Taro	Riz gonflé, Pois chiches	--
29	Pain,Yardlong jeans,Egg,Courge amère	Riz, Ruhi, Taro,Purée de pomme de terre	Riz gonflé,Pois chiches	--
30	Pain,Pomme de terre,Banane	Riz,Poulet,Gombo,Taro	Sticky rice,Banane,Lait	--
01	Bread,Yardlong beans	Riz, Ruhi,Gombo,Soupe aux lentilles, Yardlong beans,Feuilles de citrouille	Sticky rice,Banane, Lait	---
02	Pain,Banane, Lait	Sticky rice,Poulet, Pois blanc	Sticky rice,Banane, Lait	--

Address Market Imperfections

Few firms with dominant market position, Consumers need regular BCC intervention.

For some strange reasons, we seem more concerned about monopoly as main source of market imperfections. Other more pressing market imperfections issues like price fixing, bid-rigging, tie-in sales,market allocation, creating entry barriers etc often go unnoticed. Two or more firms fixing prices, firms in collusion [letting] a firm win a bid, firm selling different product with its main product and firms dividing the market among themselves deeply influence competition and profitability. Reduced competition, in turn,let few firms gain more market share.

Regulatory intervention is therefore needed to stem concentration of market share into the hands of few firms. True reporting of the sales figure by firms in their annual report often leads to determine market share of a firm in a particular industry. Unfortunately this information is not available as many firms do not publish regularly annual report or audit report. However, regulatory bodies have means to determine size of a market in a particular industry and market share of each individual firm in that industry. If this is the case, then they know the way to eradicate the market imperfections that are detrimental to both consumer welfare and competition.

Determining true market share of a firm is important for another reason. Nowadays, revenue shortfall has become a recurring phenomenon for the govt. This year govt revenue collection target is Tk 7 trillion, which many believe quite impossible to achieve. Extra revenue may come from unearthing the true market share of a firm. Often significant market share allows a firm to abuse its dominant position in an industry. This is when intervention of regulatory body is needed. We have examples too in this country.

Bangladesh Telecom Regulatory Commission (BTRC) introduced significant market player clause that allows it to impose restrictive measures to curb influence of a dominant market player. The matter created widespread debate when BTRC slapped punitive tariffs on two leading mobile operators for hiding information on new subscribers.

Drawing this lesson from BTRC, Bangladesh Competition Commission (BCC) may introduce and apply significant market player clause for other markets too.Firms having significant market share caught abusing their dominant position in the market through malpractices like price fixing, collusive bidding, market allocation can be subject to punitive/corrective tariffs.

Determining true market share of a firm in an industry can lead to potential new investment in that industry. Removing the entry barrier is a precondition to attain that reality. In some markets even 50% market share of a firm may not be a significant market share if entry is free and arrival of new entrants drive price lower to competitive market. So prevailing markets have new business opportunities due to concentration of market share into the hands of few firms. This is particularly true for kitchen market.

So determining the market share of a firm has become vital from the point of view of competition, revenue, consumer welfare and investment.

Share of the market is an indirect measure of market power, which is the ability of the firm to set price above market level. So it is the job of BCC to determine what should be called the dominant market power in an industry, scrutinizing nature of that industry. For some industry, 25% or 30% market share can be considered dominant if huge capital investment is not required.

Concentration of market share is not bad when quality output is produced efficiently at a much lower price and consumer can get it cheaply than before. If the opposite happens, then regulatory body should step in for the sake of consumer welfare and competition.

Antitrust issues are least concerned matters from the perspective of our policymakers. That is why market imperfections are so prevalent here. In various markets,we see markets are dominated by few firms. There are rooms for new entrants in these markets. What is missing is the regular intervention of BCC. As we have laws and institutions to check market imperfections, it will be a good thing to make good use of them.