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Recommendations for combating irrational price hikes

Published : Tuesday, 13 August, 2024 at 12:00 AM  Count : 870
Md Khalilur Rahman Sajal
In recent years, Bangladesh's economy has made substantial progress, characterized by consistent growth, enhanced infrastructure, and increased foreign investment. Nevertheless, the nation continues to encounter obstacles, particularly in the realm of market price stability. The daily lives of millions of consumers are being significantly impacted by irrational price hikes, which have emerged as a critical issue. 

Seasonal demand fluctuations, market monopolies, supply chain disruptions, and external economic pressures are frequently the sources of irrational price increases in Bangladesh. Furthermore, the issue is exacerbated by factors such as inadequate market monitoring, a lack of consumer awareness, and insufficient regulatory enforcement. Low- and middle-income households are particularly affected by these price hikes, as they are unable to adjust to the abrupt increase in the price of essential goods.

In Bangladesh, consumer groups are becoming more vocal in their advocacy for fair pricing and the protection of consumer rights. They work alongside policymakers to guarantee that regulations are implemented, monitor trends in the market, and raise awareness of price manipulations.

It is essential to have regulatory surveillance to guarantee that market practices are equitable. In Bangladesh, consumer organizations advocate for the implementation of Anti-Hoarding Laws, Effective Price Control Mechanisms, and Transparency in Pricing. Dynamic price control mechanisms for essential commodities, including rice, wheat, vegetables, cooking oil, sugar, and medicines, should be implemented by the government. These mechanisms must be adaptable enough to accommodate genuine market conditions while simultaneously preventing unjustified price increases.

Preventing artificial shortages that result in price spikes can be achieved by strengthening and enforcing laws against hoarding. Strict penalties for violators and routine inspections are essential. Consumers will be able to comprehend price fluctuations and hold businesses accountable by ensuring that businesses provide transparent information regarding the pricing process, which includes cost components.

A well-informed consumer base is less susceptible to price manipulation. Initiating nationwide campaigns to inform and educate consumers about their rights and how to identify unfair pricing practices. The implementation of these campaigns can be achieved through community outreach programs, social media, and mass media.

Encouraging the utilization of online platforms and mobile applications that enable consumers to compare prices from various vendors. This encourages competition and protects against price gouging. Providing consumers with the ability to report suspicious price increases through accessible platforms, such as mobile applications or hotlines. This would allow regulatory bodies to combat unscrupulous traders in a timely manner.


The adoption of ethical practices that prioritize consumer welfare must be promoted by businesses in Bangladesh. Companies should be encouraged to integrate fair pricing into their corporate social responsibility strategies. Businesses and consumer groups may collaborate to establish pricing policies that strike a balance between profitability and consumer welfare.

Particularly in sectors such as agriculture and pharmaceuticals, businesses should guarantee transparency in their supply chains. Transparent pricing facilitates the evaluation of the justification of price increases by regulators and consumers. Supporting fair trade practices, especially in the agricultural sector, can stabilize prices by ensuring producers receive equitable compensation. This, in turn, can reduce the necessity for significant price increases at the retail level.

In Bangladesh, supply chain disruptions are a substantial contributor to irrational price hikes. By promoting the broadening of supply chains, businesses might reduce their dependence on a single source or region, thereby increasing the market's resistance to disruptions.

The impact of global supply chain issues can be mitigated by promoting and supporting local production, particularly for essential goods. This also contributes to the country's economic stability and job creation. The costs associated with the distribution of goods can be reduced by enhancing logistics infrastructure, including transportation and storage facilities. Continuous investments in the modernization of these systems are essential for ensuring the maintenance of stable prices.

Policy interventions by the government are essential in mitigating irrational price increases. Targeted subsidies for essential commodities can mitigate the effects of global price fluctuations on consumers. However, it is imperative that these subsidies are effectively managed to prevent market distortions.

Regulatory bodies must actively monitor market prices, particularly for essential goods, and take swift action against price gouging. This encompasses establishing specialized task forces during peak seasons and the regularity of market inspections. An environment where irrational price hikes are less likely to occur can be achieved by implementing sound macroeconomic policies, which include managing inflation and maintaining stable exchange rates.

The formation of consumer cooperatives in Bangladesh allows consumers to influence market prices collectively. Consumers can mitigate the effects of price increases by purchasing goods in bulk at reduced prices through the establishment of cooperatives. Additionally, these cooperatives have the ability to negotiate directly with producers, thereby circumventing intermediaries who frequently inflate prices.

By selecting brands that are recognized for their ethical pricing policies, consumers can encourage other organizations to emulate them. In order to advertise these brands, consumer groups may implement awareness campaigns. Public support can be mobilized by consumer groups to advocate for more stringent regulations and equitable market practices. It is possible to guarantee that consumer voices are acknowledged by engaging with policymakers and participating in public consultations.

A multifaceted approach that encompasses regulatory measures, consumer awareness, ethical business practices, supply chain resilience, government intervention, and consumer cooperation is necessary to manage irrational price hikes in Bangladesh. By implementing these comprehensive recommendations from consumer groups, Bangladesh can strive to establish a more stable and equitable market that benefits all stakeholders, particularly the most vulnerable consumers.

The writer is an Executive Director, Voluntary Consumers Training and Awareness Society (VOCTA)



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