ENG-105

Sec # 3

THE MAIN REASONS AND PUBLIC’S REACTION ABOUT RECENT PRICE

HIKE IN Bangladesh

Prepared For

Dena Forkan (DF)

---------------------------------------------------------------------------------
Prepared By

Md. Murtoza Ali Quader

ID # 061213045

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 ACKNOWLEDGEMENT

First I want to thanks my faculty who give me this opportunity to do this research. Who

helped and guided me to do this research accurately. Secondly I want to thanks my best

friend Sami who land me his Computer, while my computer was dead. And obviously

my mom, with out her support I‟ll be dead like my PC. I also want to thanks all the

people who participate in my survey. And my entire friend circle. And last but not lest

my God.

Thank you.

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 ABSTRACT

THE MAIN REASONS AND PUBLIC’S REACTION ABOUT RECENT PRICE

HIKE IN Bangladesh

I choose this topic “THE MAIN REASONS AND PUBLIC‟S REACTION ABOUT

RECENT PRICE HIKE IN Bangladesh” because recently the price hiking problem has

become the main social problem in Bangladesh. People are suffering most in this problem

now specially the poor people. There are many reasons behind this problem. . But I think

formation of syndicate and corruption is the main reason behind this. But international

market price, fuel cost, power crisis, natural disaster, transportation problem, illegal toll

collection, action against corruption by the caretaker Government, street vendors and

illegal construction drive by the joint forces, lack of communication and co-ordination in

between different Government officers etc are also responsible for recent price hike in

Bangladesh. And the rate of this price hike is very fast. Even the military back

Government was failed to solve this problem. They were not able to find the root behind

this problem due to lack of appropriate monitoring system. But just the Government can

solve this problem by using his intelligence agency, by introducing effective monitoring

system, by improving law & order and by identifying the evil syndicate groups. But it is

not a very easy job. The support of general public is also needed to solve this problem.

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 FINDING

The main reasons behind this problem:

 The prices of commodities are almost uniform across the capital, which only

implies that a group of people are fixing the prices and that they have enough

clout in the market to be able to decide what the prices should be.

 Corruption of so called political leaders, corruption of different Government

officials and law enforcing agency is the main reason behind this problem.

We can solve this problem by taking the following measures.

 Identify the syndicate groups.

 By improving law and order.

 By framing appropriate laws by the Government to eliminate middle classes in

trading.

 By introducing effective monitoring system.

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 TABLE OF CONTENT

TITLE PAGE NUMBER

INTRODUCTION 6

RESEARCH AREA 7

HYPOTHESIS 13

METHODOLOGY 14

DATA PRESENTATION 15

DATA ANALYSIS 16

LIMITATION 28

CONCLUSION 29

RECOMMENDATION 30

PUBLIC’S RECOMMENDATION 31

REFERENCE LIST 32

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 INTRODUCTION

With the price increase of essentials capturing headlines of our national newspapers

and TVs almost everyday. Because this price hiking problem has become the main

social problem in Bangladesh. People are suffering most in this problem specially the

poor peoples. There are many reasons behind this problem. According to The finance

and planning adviser, Mirza Azizul Islam, “international price hike of essential

necessities as being responsible for high domestic prices.” Of course, international

market price is also responsible for domestic inflation, but only partially. The

adviser‟s statement simply ignored other domestic factors, many of which created by

the action by the caretaker Government, and also some of which created by the

previous government. According to my study I identify some supply-side factors as

being responsible, such as hoarding, and loss of business confidence, administered

energy price hike, international price hike of essential commodities, bribe and illegal

toll collection, structural and institutional constraints etc. corruption of so called

political leaders and different government officials etc are also responsible for this

problem. And if the food price is not controlled, the inflation rate may reach double-

digit level very soon which is currently 7.5%.

In my research paper I tried to figure out these reasons. And I tried to find some

solution about this problem. I also tried to figure out the bad effects of this problem. I

hope by reading this paper the readers will able to figure out the main reasons behind

this problem and also able to reduce or solve this problem.

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 RESEARCH AREA

In my proposal paper I had mentioned some question at which point I did like to

investigate to prove my hypothesis. My question was

> What is the main reason behind this recent price hike in Bangladesh?

> Is corruption and local syndicate only responsible about this price hike?

> What should be the role of government to reduce this price hike?

> How can we solve it?

Obviously formation of syndicate and hoarding by them, corruption, power failure,

traffic fames and load-shading, international price hike of essential commodities,

bribe and illegal toll collection, structural and institutional constraints etc. according

to Ahmed. T. (2007), the oil crisis of 1973, when oil prices increased in exponential

proportions, was not so much due to shortage of oil supply as it was due to the

decision of the major oil exporters, Arab states, to increase the prices. It was not that

oil reserves had suddenly sunk through the floor or that its demand had shot through

the ceiling. In strictly economic terms, a handful of oil exporters were in collusion,

which led to dramatic increases in global oil prices. The entire western world was

affected and the sudden price hike resulted in a long-term recession ending decades of

economic boom. It was also the first time that the United States faced an oil shortage

since the Second World War. The Arab states had succeeded in their intent to use oil

as a weapon against those not friendly to their cause. It is perhaps a classic example

of collusive oligopoly.

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The situation in the current-day Dhaka markets is similar except that the collusion

does not concern one item but several — mostly such essential food items as rice,

wheat, potatoes, lentils, edible oil, onions and milk powder. According to a report in

Amar Desh (May 11, 2007), prices of essential food items have increased 25 per cent

on an average in the past four months. According to a report in New Age (May 11,

2007), prices rose between five and 50 per cent during the same period — most of it

under the military-backed interim government of Fakhruddin Ahmed that assumed

office after the proclamation of a state of emergency on January 11. According to the

government‟s own statistics, inflation increased from just fewer than six per cent in

January this year to almost 7.5 per cent by March. While the government appears to

be in denial suggesting that inflation is not really out of control and quite below the

danger level, experts fear that it might, in fact, have crossed the double-digit mark

driven by the soaring food prices.

According to SLATE magazine (2007), about our very own mafia groups that group

has come to be known, and often referred to in the media, as the syndicate. Despite

the fact that academics, researchers and even politicians have acknowledged such

collusion, its existence is denied upfront, both by government officials and

businesspeople, in a manner that can be likened to that regarding the mafia. For the

longest time, the existence of the mafia, or rather Cosa Nostra, was denied by insiders

as well as government officials till misconceptions and myths were laid to rest by,

what came to be known as, the Maxi Trial in a court in Sicily over a hundred years

after its existence was officially reported. As for the syndicate, it has proved to be

invincible and even immune to a state of emergency, which has not been able to curb

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its potential for collusion and thereby manipulation of the prices.

The tenure of the BNP-Jamaat alliance government saw two changes of commerce

ministers, each given the sack for the same reason, while the last one had utterly

failed in his pledge to rein in the prices of essentials. The invincibility of the

syndicate was perhaps never felt with such force as it was on July 25, 2006 at a

monthly luncheon meeting of the American Chamber of Commerce in Bangladesh.

The third commerce minister of the last government, Hafiz Uddin Ahmed, squarely

put the responsibility of controlling the prices of essentials on other ministries and

went so far as to suggest that the government should set up another ministry for the

task. „The Consumer Protection Act is being scrutinized now and I have urged the

food ministry to make anti-hoarding laws for checking unscrupulous traders‟

syndicates and hoarders,‟ he said. He also suggested that the finance and food

ministries were better equipped to tackle the matter. It was just three months after

Hafiz had taken up his new portfolio on April 26 with the pledge to reduce prices of

essentials within a month. Barely a week earlier, at a meeting with businesspeople at

his office, he assumed a dramatically different tone and harped on a different note,

although, even then, it was obvious that his success in bringing down the prices of

essentials was at the mercy of the businesspeople. On July 19, Hafiz announced to the

press — following the meeting — that the intelligence agencies had identified the

members of the syndicate „who were involved in manipulating prices through

hoarding and other means‟. But he only „hoped‟ that the relevant ministry would take

necessary action. His comments about the meeting betrayed his helplessness and utter

inability to hold sway over the businessmen. „They have given us assurance that they

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will not make any windfall profit by making the people hostage,‟ said Hafiz about the

traders present at the meeting. With hindsight it appears that the minister did his best

to divert attention from the syndicates citing a marked difference of prices between

wholesalers and retailers, and the producers and wholesalers that he suggested added

to the woes of the people. M Saifur Rahman, then the minister for finance and

planning, and perhaps the most influential cabinet member of the BNP-led

government, when approached with the possibility of reducing import tariffs on

essential food items, told the press, it never paid off. He said the prices would

decrease for a short while but resume their rising trend soon after. Instead, he

suggested, the syndicates that manipulated the prices were the main reason behind the

price hike and had to be dealt with decisively. But government officials deny their

existence quite categorically despite overwhelming circumstantial facts that testify

exactly the opposite. The commerce secretary was quoted in January as saying they

are „yet to receive any conclusive evidence on the existence of syndicates‟. He went

further to substantiate his claim asking, „When the prices went up everyone was

blaming syndicates. But now that they are going down how come everybody is quiet?

If there was a syndicate why are the prices coming down?‟ He did partially admit to

their existence since former ministers had claimed that syndicates exist. But the

rebuff of a prominent businessman, quoted in New Age‟s weekend supplement Xtra

on January 12, smacks of the classic mafia disclaimer. „I read about this regularly in

newspapers but I have never seen one or been a part of it,‟ says Mostafa Kamal,

chairman of the Meghna Group, one of the leading importers of edible oil, powdered

milk and sugar. „How, where and when are questions people who accuse us of

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syndication should answer,‟ he said. It is alleged that the Meghna Group is among the

leading syndicate members in the country. Hossain. E.(2007), programme officer of

the Consumers‟ Association of Bangladesh, echoed the general apprehension. „I have

attended meetings at the commerce ministry where powerful and well-known

businessmen have directly threatened government officials with cutting out supply if

they did not accept their chosen prices,‟ he told Xtra. According to the Daily Star

(May 18 2007), a report of the Centre for Policy Dialogue, a research organization,

based on records of the National Board of Revenue, found that a strong cartel

accounted for a substantial share of the imports. The report says the top five importers

have accounted for importing 96 per cent raw sugar, 46 per cent refined sugar, 67 per

cent crude soybean oil, 60 per cent crude palm oil, 49 per cent wheat, 37 per cent rice,

31 per cent lentil, and 31 per cent onion of national imports till March of this fiscal

year. While the report did not mention any names, a number of reports in other

newspapers have done so. For instance, according to a report of Amar Desh (May

11, 2007) the TK Group, the Meghna Group and the City Group account for 65 per

cent of edible oil imports. The next three — the SA Group, the MEB Group and the

Marine Group — account for another 25 per cent of the imports. Quoting sources, the

report says traders of Dhaka and Chittagong are the major importers of lentils, ginger,

garlic and other essentials that come from India. It goes on to mention the names of

Shathi Enterprise, Seven Star and Banijjya Bhandar from Dhaka, Rumpa Enterprise

of Bogura, Pahari Enterprise, AB Trading and Akhter Impex of Chittagong as

significant market players.

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When the country is badly shaken by the unprecedented floods there is another

alarming factor—the price hike of essentials that is slowly but very steadily engulfing

the rural life of the common people. It is appalling that one kg of green chili costs you

TK 200! There are no vegetables that cost you less than TK 30 per kg! It also creates

shortage of foods. That also increases the price of essentials. Similarly other factors

such as power failure, international market price, fuel cost, power crisis, natural

disaster, transportation problem, illegal toll collection, action against corruption by

the caretaker Government, street vendors and illegal construction drive by the joint

forces, lack of communication and co-ordination in between different Government

officers etc factors are also responsible for recent price hike in Bangladesh.

By taking serious action and frame effective laws for the elimination of the middle

men groups existing various trading circles and to control bribery in between law

enforcing agencies and traders. By minimize the traffic jams and load shadings. By

forming a strong co-ordination efforts and monitoring system, established for the co-

operation, co-ordination and exchange of information in between different

Government officials entrusted to check price level. By identifying syndicate groups

and taking appropriate action against them. The Government can control the price.

By creating awareness against corruption and establish a price list for all kinds of

goods to control price hike. And by electing an honest and stable Government, the

general people can solve this problem.

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 HYPOTHESIS

There are many reasons behind this recent price hike in Bangladesh. But I think

formation of syndicate and corruption is the main reason behind this. But

international market price, fuel cost, power crisis, natural disaster, transportation

problem, illegal toll collection, action against corruption by the caretaker

Government, street vendors and illegal construction drive by the joint forces, lack of

communication and co-ordination in between different Government officers etc are

also responsible for recent price hike in Bangladesh. And the rate of this price hike is

very fast. Even the military back Government was failed to solve this problem. They

were not able to find the root behind this problem due to lack of appropriate

monitoring system. But just the Government can solve this problem by using his

intelligence agency, by introducing effective monitoring system, by improving law &

order and by identifying the evil syndicate groups. But it is not a very easy job. The

support of general public is also needed to solve this problem.

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 METHODOLOGY

There are two types of data in my research paper.

1. Primary Data. &

2. Secondary Data

Primary Data:- I have collected my primary data to figure out the mail reasons and

public‟s reaction about recent price hike in Bangladesh by conducting a survey on 30

general people. To do that survey first I had prepared some questions and some

suitable answer against each question. Then I approved that questioner from my

faculty. After that I went out for general people to conduct my survey. The

shopkeepers, doctors, teachers, tailors, chemists, retired peoples, servants,

housewives and students were the people who were participate in my survey. I have

had some difficulties to conduct my survey. I had very little time to conduct this

survey. Within this short period of time I had to find 30 peoples of different classes.

People of all class were participating in my survey. Some of them did not know hoe

to write and read. I had to read and translated my question for them. After knowing

there answers I filled the answers for them. Thus I completed my survey to get my

primary data.

Secondary Data:- I have collected my secondary data mostly from different websites

such as “www.vjel.org, www.unnayan.org” etc, different newspaper such as “The daily

star, The New Age” etc, and from different magazines.

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 DATA PRESENTATION

CAPTION: A survey has been taken of 30 people for the topic of “The main reasons

and public‟s reaction about recent price hike in Bangladesh.

Question No. Option A Option B Option C Option D

1 63% 40% 0% 6.67%

2 48.67% 23.33% 20% *

3 83.33% 3.33% 13.33% *

4 43.33% 43.33% 13.33% *

5 20% 63.33% 16.67% *

6 30% 30% 46.67% *

7 53% 16.67% 10% *

8 3.33% 16.67% 46.67% 26.67%

9 13.33% 26.67% 50% *

10 36.67% 30% 26.67% *

11 53% 10% 26.67% *

12 66.67% 20% 3.33% *

13 46.67% 10% 33.33% 16.67%

14 10% 53% 0% 46.67%

15 36.67% 46.67% 23.33% *

TABLE: THE SURVEY RESULT

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 DATA ANALYSIS

Recently I have done a survey for about 30 people to find the main reasons behind

this recent price hike in Bangladesh. For this survey I prepared a set of question

consisting of 16 questions. According to my survey here I analysis some of the

important questions from my questioner.

Question No: 1 A B C D

What do you Formation of Corruption Extortion Taking bribe

think about Syndicates from traders
the main reason
behind
this recent price
hike?

100
90
80
70 63
60
50 40
40
30
20
6.67
10 0
0
A B C D

Chart 1: The survey result of question no: 1

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 Question No: 2 A B C

Do you think Yes, because the No, there is no syndicate May be,
there government groups exist not sure
is any Syndicate can‟t control the
groups price.
involved in price
hike?

20
A
3.33

83.33

Chart 2: The survey result of question no: 2

According to my survey, in reply of my first question 63% people said formation of

Syndicates is the main reason behind this recent price hike. While 40% people said

corruption is the main reason behind this. In reply of my second question 83.33% people

said syndicate groups are involved in price hike because the government can‟t control the

price.

In my survey most of the people think the syndicate groups are mainly responsible for

this problem. These syndicate groups controlling the price by hoarding. Hoarding by

businesses has been widely blamed by many as being main culprit behind the current

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crisis. Indeed, if we let aside moral issues, hoarding markets perfect economic sense to

businesses and that is why they build up stocks to make larger profits. For example

suppose the current market price of a NOKIA 1100i mobile phone is TK 2800. Now let

us assume that for some unknown reasons, the price of the same brand mobile is expected

to increase to TK 4200 next month. Should you, I

or any mobile phone dealer in the market sell NOKIA 1100i at the lower price now or

wait to sell at the higher price a month later? What would happen to the current market

price of NOKIA 1100i, if most dealer hold off selling? This is exactly how inflationary

expectation, expectation about future price hike, leads to hoarding, creates shortage,

raises current market price and, finally, brings larger profits for businesses. .From the

above analysis we conclude that the syndicate groups are nothing but a well-known

business farms, run by well-known business man.

But the syndicates, for all their collusion, manipulation and public denial, are not entirely

responsible for the price hike. There are other related factors some of which are

compelling, even more than syndication. To begin with, production costs have risen and

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so have the prices. But it gives an impression that the farmers are linked to the market

and thereby benefit from the price rises at the consumer end. That is hardly the case.

They are paid the bare minimum below which the farmers cannot afford to cultivate crops

the next year. And prices at their end have increased only marginally over the years. The

real value addition (pun intended) to agricultural produce begins with the middlemen who

buy from farmers. Along the supply chain there are warehouses, wholesalers, retailers

and micro-retailers often with several more layers of middlemen sandwiched among

them. Reports in the media indicate that prices, especially those of vegetables, appreciate

by up to 500 per cent between the farmer and the end-consumer. That is how the

middleman also controlling the market price.

And the Government is not able to identify them, catch them, and even control them.

Even the Government has blamed international market price hike of essential

commodities as being responsible for high domestic prices to cover their failure. The

Government has failed to solve this problem due to the corrupted Government officers

and corrupted law enforcing agencies. They are not willing to monitor the market price.

They are just willing to take bribe. Again lack of communication and co-ordination in

between different Government officers and lack of communication system in between

different Upozela and districts head quarters with the capital is also responsible for this

recent price hike.

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Question No: 3 A B C

Which political Blockade and Corruption of so Conflict between

factors are strike called political political parties
responsible for leaders
price hike?

16.67 20

A B C

63.33

Chart 3: The survey result of question no: 3

According to my survey, in reply of my third question, 63.33% of people said corruption

of so called political leaders is the main political factor behind this price hike. And only

20% of people said blockade and strike is responsible for this.

Political leaders are not actually political leaders. Actually they are political business

man. They invest there money to own the party nomination and also own the election.

Actually they bought there place in Parliament. After wining the election they start to

gain black money as much as they can. And they gain it by corruption. And that‟s why

the price of essential commodities is increasing day by day. This political don‟t care

about the general people, they just care about themselves. Even they don‟t know how

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much black money they have gained by corruption. The current anti-corruption drive by

the Caretaker Government clearly shows the statistic how much black money they have

gained through corruption. That‟s why the corruption of so called political leaders also

responsible for recent price hikes.

Question No: 4 A B C D

What Bribe & illegal Traffic Power failures Lack of

structural & toll collection congestion storage
institutional capacity
constraints are
mainly
responsible for
this recent
price hike?

16.67
46.67 A

D
33.33
10
Chart 4: The survey result of question no: 4

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According to my survey, in reply of my forth question 46.67% people said bribe and

illegal toll collection is the main structural & institutional constraints that are mainly

responsible for this recent price hike. And 33.33% people said power failure is also

responsible for this problem. But I think this both factors are equally responsible for this

problem

The illegal practices of bribes toll collections and associations greatly influence in raising

the price of essential commodities. The traders has to paid toll and bribe at each entering

point of a town. And this increases the transportation cost of goods. As a result the price

is increases. And the Government has failed to stop this because of the involvement of

corrupted law enforcing officers. While the Scarcity increases the opportunity cost of any

service and provides opportunities for corruption. The acute shortage of generation

capacity and its consequent effects - frequent load-shedding, low voltage and low

frequency - on different economic sectors, as well as on essential services such as water

supply, hospitals, and telecommunications, have opened up doors for many types of

corruption. That is also responsible for this recent price hike. Why that is happening?

Because of the corruption of the employee of DESA and PDB. According to the

Transparency International Bangladesh (2006),

 A Ledger Keeper in DESA, a very low level employee, became the envy of many

when he purchased a house in a middle-income residential area of Dhaka for Tk

3.8 million and an allotment in a shopping arcade.

 Many Assistant Engineers of BPDB own private cars, which they cannot afford to

buy and maintain on their official salary.

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  A particular Assistant Engineer, with close links with the Collective Bargaining

Agent, comes to office in a luxury four-wheeler, while another mints money by

making various interventions in the name of a minister.

 A meter reader who was placed under suspension joined the ruling political party,

got his job bank, became a CBA leader, and is now the happy owner of two

houses and a shop.

 A corrupt and overweight meter reader, who employed agents to do his job and

concentrated on eating instead, was transferred from Dhaka to an outstation by an

over-zealous DESA officer. Fretting and fuming, the reader came to see a very

senior DESA official and told him in no uncertain terms, "Sir, I have been

working for 25 years in one place and nobody dared to touch me. You have not

done well by transferring me. I will see how you can move me." Sure enough, he

stayed where he was, with the help of his co-operative union leaders.

And due to this corruption load shading occurs frequently, as a result the price of

essential goods is increasing rapidly.

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Question No: 5 A B C

Do you think Yes No Partly responsible

natural disaster,
street vendors and
illegal construction
drive by the joint
forces are also
responsible for
recent price hike?

C 46.67

B 30

A 30

0 10 20 30 40 50 60 70 80 90 100

Chart 5: The survey result of question no: 5

According to my survey, in reply of my fifth question 46.67% people said natural

disaster; street vendors and illegal construction drive by the joint forces are partly

responsible for recent price hike. And equal number of people said yes and no.

But I think it is responsible and why? You will find your answer right now. When the

country is badly shaken by the unprecedented floods there is another alarming factor—

the price hike of essentials that is slowly but very steadily engulfing the rural life of the

common people. It is appalling that one kg of green chili costs you TK 200! There are no

vegetables that cost you less than TK 30 per kg! It also creates shortage of foods. That

also increases the price of essentials. And that‟s why I think natural disaster is directly

responsible for price hike, but the others are partly responsible.

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Question No: 6 A B C D

How can the By taking Identifying the By improving By improving

Government necessary steps syndicate traffic law & order
control the to stop cross groups congestion
price hike? border
smuggling of
fuel and
fertilizer

100
80
60
40
20 53 46.67
10 0
0
A B C D

Chart 6: The survey result of question no: 6

According to my survey, most of the people said we can able to control the price by

identifying the syndicate groups and by improving law & order.

If the government framed strong laws to improve the law and order we can able to

identify the syndicate groups and also able to control the price of essential goods. To

improve this situation the personals of different law enforcing agencies should

immediately be deployed in different trading centers, sea port, river ports, and land ports

to check up and down of price level due to hoarding black marketing of essential food

grains and other food items. Thus we can improve the current situation.

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Question No: 7 A B C

Which methods By framing By introducing By re-introducing

can be most appropriate law by effective old rationing
applicable to the Government to monitoring system. system by the
reduce or improve eliminate middle Government to
this problem? classes in trading. stable the prices

23.33
36.67 A

46.67
Chart 7: The survey result of question no: 7

According to my survey, in reply of my seventh question 46.67% people said by

introducing effective monitoring system we can able to reduce this problem. And 36.67%

people said we can solve this problem by framing appropriate law to eliminate middle

classes in trading.

We are passing through a revolutionary communication and contract system due to the

introduction of most modern computer and mobile communication system in our country.

It is now very easy for the Government to established scientific monitoring systems and

cells to keep constant observation data collection and exchange of information‟s about

the causes up and down, price level of important food items and essential commodities.

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According to my survey most of the people said the rate of price hike is quite fast. And

the general public‟s can help the Government to remove this problem. Most of the people

in Bangladesh can afford to meet their family essential commodities, but they said it was

very tough. Surprisingly the upper class people are also by price hike. Most of the people

agree to that if laws and regulation enforced properly, it is practically possible to reduce

this price hike. And the general peoples can also play a big role to solve this problem.

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 LIMITATION

I had very little time to do that survey. If I had enough time I may go out of Dhaka to find

the poorest people. I want to take the interview of the poorest people. I had also faced lots

of obstacles, such as my brand new PC was dead in middle of the semester. And this

affected my research paper. Due to this I didn‟t submitted my rough draft properly. In the

month of July I had caught by fiver three times. But after all of these obstacles finally I

finished my research paper and I‟m quite satisfied about it.

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 CONCLISION

Given the scenario in Bangladesh, any measure to control prices, barring one that

addresses the syndicates, is bound to be band-aid-like — a bit of eyewash. That is

perhaps the first area where the government should focus in its bid to reduce the prices of

essential items. But it is not possible for the Government to reduce this problem alone.

The general people, the mass media everybody should came forward to help the

Government to reduce this problem. Other wise the price of essential commodities will

increase day by day. And nobody will able to control this problem.

After all of this analysis and survey I conclude that my hypothesis is correct. Most of the

general people agree with my hypothesis. Most of the people agree with me that

formation of syndicate groups and corruption is the main reasons behind this problem.

And everybody should come forward to solve this problem.

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 RECOMMENDATION

 By taking serious action and frame effective laws for the elimination of the

middle men groups existing various trading circles.

 By framing effective measures to control bribery in between law enforcing

agencies and traders.

 By taking bold measures to control the illegal role of “mastans” in trades and

commerce‟s.

 By minimize the traffic jams and load shadings we can reduce this problem.

 A strong co-ordination efforts and monitoring cells should be formed to observe

and check price level of essential commodities in different trade center of the

country.

 Committees should be established for the co-operation, co-ordination and

exchange of information in between different Government officials entrusted to

check price level.

 By re-introducing old rationing system by the Government to stable the prices

 By identifying syndicate groups and taking appropriate action against them.

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 PUBLIC’S RECOMMENDATION

 By reducing oil price and introducing old rationing system can help the price hike

problem.

 By arresting corrupted political leaders and removing them from future

Government formation.

 By electing an honest and stable Government in the Bangladesh.

 “Purely on consciousness, just don‟t go for degree; be educated as a human and as

a proper citizen.”

 The Government alone with the different social groups should create awareness

against corruption and establish a price list for all kinds of goods to control price

hike. Moreover, every citizen should help the Government as much as their

ability.

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 REFERENCE LIST

1. Ahmed, T. (2007, July). Free market predators. SLATE, 4- 5.

2. Ahmed, T. (2007, July). Middle-class feels the pinch, SLATE, 5- 6.

3. Transparency International Bangladesh. (2007).

4. Rashid, M. (2007). Price hike, inflation, and price control.

Road Map to Good Governance in Bangladesh. Retrieved July 21, 2007 from

http://www. centerforgoodgovernance.org

5. Islam, K. A. (2006, May 3). Govt to probe involvement of any syndicate

in sugar price hike. The New Age, p.1.

6. Nasir, A. B. M. (2007). Why the price going up, and what to do about it?

North Carolina Center University, Durham, North Carolina, USA.

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