Double trouble for low, fixed income groups

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People belonging to low and fixed income groups have started feeling the adversity caused by the latest hike in fuel prices as prices of almost all commodities including rice and edible oil shot up across the country following the government move.

The fresh rise in prices will put poor people in double trouble since they have already been facing hardship in buying essentials at higher rates for months.

Meanwhile, over one lakh people are living amid fear of losing jobs as a large number of big, medium and small industries in the southwestern region are likely to shut down because of the abnormal price like of furnace oil.

The government raised the prices of energy fuels on Monday by a huge margin, which caused chaos in the transport sector with operators in many places charging more than the re-fixed fares.

The communications secretary, however, said mobile courts would operate to stop the malpractices.

Many consumers in Dhaka and elsewhere said they are simply unable to afford any further price hike of commodities.

In Dhaka, the prices of rice, edible oil, egg and vegetables soared because of increased carrying cost as well as the incessant rains.

Rice-loaded lorries from Chapainawabganj charged Tk 12,500 each yesterday, traders at Mohammadpur Krishi Market said, adding that previously the charge was Tk 9,000.

“The carrying cost of a 85kg sack of rice has increased by Tk 20,” said Ayub Ali, a trader at Karwan Bazar kitchen market.

Prices of all varieties of rice went up in the capital yesterday. The price of fine rice increased by Tk 20-50 per maund–Miniket was selling at Tk 1,500 per maund which was Tk 1,470 on Tuesday while the price of IRRI rose to Tk 1,150 from Tk 1,130.

Coarse rice was selling at Tk 33-35 a kg while fine rice at Tk 36-46 at different retail markets.

Traders said the “real” impact of the price hike of rice would be evident in a day or two.

Soya bean was sold at Tk 116-120 per litre while super palm oil at Tk 108-112 and palm oil at Tk 103-108 at retail markets.

The price of eggs shot up by Tk 7-10 a dozen, selling at Tk 72-75 yesterday.

“We were already in trouble as the prices of essentials increased after the budget,” said a consumer at Karwan Bazar, adding, “How will I run my family if the price of each item goes up by Tk 6 in a day when the income remains the same?”

Besides the fuel price hike, the ongoing inclement weather has affected especially the prices of vegetables that shot up by Tk 2-5 a kg at different kitchen markets.

The price of crude edible oil rose to $1,500 per tonne on the international market from $1,450 while the price of palm oil rose to $1,275 from $1,250 within a week, said to Fakhrul Alam, country manager of Malaysian Palm Oil Council.

“The rise in the prices of petroleum products in the international market is the reason behind the increase,” he told The Daily Star yesterday.

Wholesalers at Moulavibazar market in Old Dhaka, meanwhile, alleged that a section of traders were making money by increasing the edible oil prices unusually in the name of fuel price hike.

Our Chittagong correspondent reported that the prices of different essentials including rice, edible oil and pulses marked a sharp rise in both wholesale and kitchen markets on Tuesday morning.

“The announcement of fuel price hike at the end of the month came as a double blow for us because we were virtually empty-handed,” said Zahirul Islam, assistant professor of Chittagong City College.

Azizul Haque, a retail trader at city’s Chawk Bazar, said the price of edible oil of all brands have increased by Tk 10 per litre while the price of Chinigura rice jumped to Tk 95 from Tk 72 per kg.

The prices of Miniket, Pijam and Jirashail rice also increased by up to Tk 4 a kg, he said, fearing the increase may continue over the next few days as the transport cost increased by Tk 2,500-3,500.

The prices of different varieties of pulses had already gone up by Tk 5-10 a kg at the retail markets.

Pulses imported from Nepal was selling at Tk 90-94; the price was Tk 85 last week.

Our correspondent in Dinajpur reports: Coarse rice was selling at Tk 32-34 per kg; the price was Tk 30-32 a few days ago. The prices of soya bean and mastered oil increased by Tk 7 and Tk 10 reaching Tk 120 and Tk 130 per kg.

The price of sugar also rose by Tk 3 per kg.

“People in the low-income group are finding it increasingly difficult to manage household expenditures in the wake of the never-ending price spirals of daily essentials,” said a consumer in the town.

Our Sylhet correspondent also reported sudden rise in the prices of essentials at city markets, especially the price of rice that shot up by Tk 50-100 per 50kg sack on the wholesale market.

Our correspondent in Rajshahi reports: Bus fares in all routes from Rajshahi increased from yesterday as petroleum products were being sold at exorbitant prices instead of the government-fixed rates.

Kerosene was selling at local markets at Tk 60 a liter although the government-fixed rate is Tk 55.

The price of a LPG cylinder–fixed at Tk 1,000 on Monday–rose to Tk 1,350.

The prices of different commodities also shot up in Bogra.

VULNERABLE INDUSTRIES

There are 50 big industries in the southwestern region that may go on the verge of closure because of the price hike of furnace oil, said Akbar Ali, chairman of Shamim Metal Industries in Khulna.

All these big, medium and small industries running as losing enterprises would shut down if the government does not give subsidy or re-fix the price of furnace oil, he told our correspondent in Khulna.

Khulna Chamber of Commerce and Industry President Shaharuzzaman Martuza said the price hike would also affect the economy of the region and law and order would be hampered as prices of rice and other essentials had already gone beyond the buying capacity of people.

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