Sudden hike in milk price |
Recently prices of liquid milk distributed by big companies have increased by TK 10. From now on 1-litre of liquid milk will cost Tk90.Few companies operate in this market. And many of them dominate the food-processing industry.The latest decision will make protein costlier for the middle and lower middle-income groups. Earlier, eggs were sold at Tk180/170 per dozen. Now it is hovering somewhere around Tk120/130 per dozen.
Inflation-battered household is already paying a heavy price by curtailing their consumption and spending.Rise of coarse rice price gives an indication about the gravity of the situation. A year ago ,1 kilo of coarse rice was being sold between Tk 35 and 38. Now the coarse rice is being sold at Tk 55.Tk 20 increase is indeed costly for the lower income groups. Even flour/atta price rose to an uncomfortable level. Official figure of inflation is 7%. But the food-inflation has long crossed the double digit figure and many argued that it is more than 15%.While household income is fixed many find it an uphill task to fight this battle against rising food-inflation.
Except Milk Vita, there is no successful cooperative in Bangladesh. If we have few more examples like Milk Vita,Amul then they could comfort cash-strapped middle class pockets by delivering affordable agro-products.Consumers would not mind if the high prices they pay for eggs,milk,milk-products and meat went to the pockets of govt-backed,regional cooperatives.
The issue here with current big operators of agro-products is that they have wide range of product line and they are dominating in every domain,from banking to media, from consumer goods to export-oriented industry. Moreover, many here operate in agricultural input market.It is unhealthy competition and unacceptable.Nowadays, we have seen people representing these groups have becomes MPs. Now groups are at policy level to influence the production and prices of inputs and final products.
As we have left-induced narrative-making machinery---very strong here,we have seen left-leaning media embarked on carrying narratives that justify the price increase of a particular product. Who did tell you to give the breakdown of cost of making a particular product?And such reports are not being carried out by profit-making media. At the end of the day, the inflated price became the new price of the product.This is a tremendous disservice to the consumer in general.
Government needs to break the cartel in fish feed,animal feed,poultry feed market. If it requires to intervene in these markets then it should leave no stone unturned to do so.Remember the greater good here is to ensure cheaper protein for the consumers. To do so if govt thinks it should allow import of eggs and meats then it should do so without delay.
Review of antitrust laws,quintessential to protect consumer interest is a must at this critical moment.Proper amendment should be made to bring down any obstacle to entry into the input and agro-processing market, to bar the companies operating in both the input and output market and to discourage them operating media outlet and running for MP election.
For an export-oriented industry, it is ok for backward and forward expansion. Production is taking place in one country,inputs are procured from another country and final product is sold in another country. One tiny individual exporter cannot influence the price. But when the market is domestic and consumers’ interest gets top priority, we simply cannot let the input and output markets fall into the hands of few groups as we have not installed the proper check and balance mechanism for the operation of such groups.
In many developed and developing countries, investment in agro-processing industry led to benefit both the consumers and peasants. But here in Bangladesh we have not reaped that benefit yet. Producers are yet to be insulated from any bed spell of cultivation. And consumers are getting worse off day by day by paying high prices for the processed food with a compromise to quality and environment. The price I pay for a small amount of dry cake/plain cake is not worth of the product. I deserve higher quantities for TK 10. And plastic wrapping is detrimental to the environment. Instead of big companies,if we invest in and modernize the neighborhood bakeries to maintain hygiene and quality goods,they will do a fine job in terms of delivering higher quantities of quality foods. And employment and revenue for the govt will increase by many folds. If these big groups have so much money and brain why they do not go to somewhere else and invest there to make money,leaving the consumers' market alone. Similarly, I have serious doubts about the joint-venture one as Bangladesh is no place for saints.BM container depot tragedy revealed how foreign investors with little credentials operate at ease in this country. My point is agro-processing industry should not be an industry to mask your other fishy businesses. I observe that Bangladeshi consumers in general pay inflated price for agro-processed goods compared to other countries.
I think consumer protection body should immediately convene a hearing on the increase in liquid milk price. A clear explanation on what provoked the sudden increase should be demanded. Any unjust increase should be met with punitive measures and further reduction in price. Very few imported ingredients are used in poultry and animal feed. It is bizarre that price increases drastically in the agro-processed industry since we allowed investment of big companies here. This kind of tendency has to be stopped for the sake of of the consumers. And no compromise is allowed with the protein needs of the ordinary people.
Notes And References:
- ”Companies Increase The Price of Milk”,Dhaka Tribune Desk,August 27,2022.For more read at https://www.dhakatribune.com/commerce/2022/08/27/companies-increase-the-price-of-milk
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