Market monitoring alone cannot reduce commodity prices: Muktadir

Only market monitoring cannot quickly bring down living costs and commodity prices, which remain at unsatisfactory levels at present, Commerce Minister Khandakar Abdul Muktadir said today.

Rather, a range of factors, including fuel and electricity prices, interest rates, productivity, transportation and infrastructure, are linked to them, he said.

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Urging people not to expect immediate results in reducing commodity prices, the minister suggested developing the necessary infrastructure and energy capacity.

Muktadir made the comments when a group of journalists asked him about rising commodity prices after a meeting between the commerce minister and the Confederation of Indian Industry (CII) at the commerce ministry in Dhaka.

The minister gave the example of Bangladesh’s logistics costs, which account for around 16 percent of the country’s gross domestic product (GDP), much higher than the international average of about 10 percent.

Because of the high logistics costs, the additional burden is borne by end consumers, as logistics costs also affect the transportation of goods, he said.

Muktadir said there would be opportunities to reduce prices if the country could ensure better connectivity, reliable and affordable energy, and an efficient supply chain.

The government is working to develop new infrastructure for liquefied natural gas, improve gas supplies, and ensure uninterrupted operation of power plants.

Regarding the seasonal price increases in green chillies, onions and vegetables, he said although domestic production has increased, supply shortages occur at certain times of the year.

To reduce the seasonal gap, the Ministry of Agriculture is taking initiatives to increase planned production, including through contract farming.

The minister also said simultaneous improvements in energy, infrastructure, production and supply-chain systems would increase market stability and gradually help reduce the cost of living, according to a statement from the commerce ministry.