Experts argue that while setting ceiling prices for certain products in the market has shown some success in price fixing for imported goods, it generally fails to address broader market issues.
According to them, to ensure long-term stability, it's crucial to regulate both the supply and demand of products in the market rather than solely focusing on issues like syndicates.
During a seminar titled "Syndicate" organized by the International Business Forum of Bangladesh (IBFB) in the capital city, experts emphasized that syndicates have minimal impact on the market when supply aligns with demand.
Addressing the seminar as the chief guest, State Minister for Commerce Ahsanul Islam Tito highlighted ongoing efforts to regulate prices across three categories of products: imports, domestically manufactured goods, and perishable items. He stressed that each category operates within distinct market dynamics, suggesting that a blanket approach to price regulation may not be effective.
Tito noted that while the price of soybeans has been successfully regulated before Ramadan, challenges remain due to potential manipulation of supply by certain suppliers. He assured that surveillance measures are in place to monitor such activities.
In response to queries from journalists, Tito reassured that there would be no onion crisis, citing an expected import of 50,000 tons of onions from India. He downplayed concerns regarding recent policy changes in India, emphasizing that the onion season in Bangladesh has already commenced, minimizing the potential impact.
He also said that the prices of products like sugar and oil in the Ramadan market are at a reasonable level.
Commerce Secretary Tapan Kanti Ghosh said that the market is not being controlled by fixing the price of products as it doesn’t work outside of fully import-dependent products like oil and sugar. Moreover, price fixing is not possible for agricultural products as there are many suppliers.
He also said that there might be information gaps on the supply and demand of products which should be fixed.
He also suggested formalizing the agricultural products market and setting up community-based agricultural markets.
Helal Uddin Ahmed, a professor of the Economics Department of Dhaka University presented the keynote at the seminar.
He said that the interests of both consumers and producers should be looked at as looking at the interests of any one side will not bring stability to the market.
“Without market stability, if the price of any product comes down a bit now in the future you may have to buy it at a higher price again,” he added.
However, if the market is managed based on demand and supply, protecting the interests of both consumers and producers, then the market will be fine.
“I do not want to say that there is a syndicate in the market,” he added.
Director General of National Consumer Rights Protection Directorate AHM Safiquzzaman said that many things are invisible in the market.
“Meanwhile, there is no major crisis in the supply system. But we have to buy products with higher prices. We have no information about the exact market demand and proper data. So, there will be less chance of syndicate or cartel in the market,” he added.
Abdul Mazid, former Chairman of the National Board of Revenue (NBR), highlighted the presence of syndicates in the market, emphasizing the need for their regulation. He cautioned that if syndicates gain control over the government, it could lead to significant issues. However, Mazid also stressed that solving these problems requires collaboration from all stakeholders, not just government intervention.
MS Siddiqui, vice-president of IBFB, outlined that syndicates emerge when groups attempt to manipulate the market by controlling supply and distribution. He clarified that not all coordinated market activities constitute syndicates, but rather it depends on the intention to influence the market collectively.
The program was presided over by Humayun Rashid, president of IBFB, with contributions from Hafizur Rahman, a member of the Bangladesh Competition Commission, Khalid Abu Nasser, former director of the Bangladesh Competition Commission, and Tasnuva Shelley, a Supreme Court lawyer, who also shared their insights during the seminar.