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Price spiral and dwindling hopes

7 November 2005, 18:00 PM
LETTERS TO THE EDITOR
By Siraj-Ud-Daulah, Sylhet
7 November 2005, 18:00 PM
After spending four years at the citadel of power, the four party alliance government has forgotten the sufferings of the people who voted them to power. Inflation and high prices of essentials have made life of the general people truly miserable. A survey conducted recently shows that the price of essential commodities has increased by about 75%. The price of coarse rice has increased by 72%, flour 75%, Soya bean oil 71.09% green chili 90% etc. The government has no control over the market and it is because of thinking little for the people who actually shape their political destiny. It is noteworthy that the inflation rate was 1.66% during the fiscal year 2000-01, which now has become 7.35% in the fiscal year 2004-05.

The finance minister has failed to control the price hike of essentials. He boasts of remittances and foreign currency reserves but the general well being of people is a badly neglected area. In this critical juncture of price spiral and volatile economic situation our finance minister sometimes make mockery with the people, advising them take cabbage and cauliflower instead of rice, and at times he has been bitterly critical of our food habits.

Recently, the Bangladesh Bank has changed its policy in SLR & CRR to sooth the money market, that is, through these instruments the Bank will withdraw Tk 2,400 crore from the market which may help to decrease the inflation rate.

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It is one side of the mirror. On the other side the government has decreased import duty on 3,000 items after the budget announcement, which will expand the volume of money in the market through disbursement of loan for import. Obviously, it is a contradictory policy of the government.

Finally, we want to say that if the government does not take any serious decision to control the market it will face a dire consequence in the next general election.