MARKET SITUATION OF ESSENTIAL GOODS: Case Study of MILK VITA

Muhammad Shamim Akhter, 24 August, 2011:

A.
After a week we shall, inshallah, celebrate Eid-ul-Fitar, one of the biggest religious festivals in Bangladesh. It is worthy mentionable that there are certain food recipes are chosen by that community on the auspicious of the festivals. As far as Bangladeshi Muslim concerned, Biriani, Polao, beef, chicken, mutton, custard, Firni (Milk made sweetmeat), Semai (Italian vermicelli)  etc. the first recipe they cook and  enjoy with their families and guest.   To prepare the recipes it is required beef, button, ghee, edible oil, sugar, spices, onion, ginger, garlic and milk.  As a result, the glitters of the festivals are heavily dependant on the availability of those. The happiness of those days may defaced by dismal if those are not bought, no matter the reason is.  This year, there is a maximum possibility to be happened so, since the prices of the goods of those are beyond the capacity of the mass people, in particular those are not directly associated with their production.
It is mentionable that those goods mentioned above are not required to canvass for creating market, the reason of the reality to be achieved the status as branded goods in comparison with the goods which are heavily dependent on advertisement and it is one of the best sectors, the GOB should have opportunity to be utilized as sectors where lots of peoples may be employed.  Furthermore if those are produced in abandon above the limit of the domestic market, may export easily. In absence of any measures should necessarily be taken on this behalf, in addiction, to have the emphasis on export, the foreign reserve is declining alarmingly, some sources have already to be exposed of the fact. Few years back, by 53 BD taka we get 1 Australian taka, we have to pay 73 Taka for I Australian Dollar. It is verily the bad indication of our economy. Once imports are emphasized on the goods which may be produced locally, if done otherwise, it may be assumed that the policy makers are less reluctant to the onus of employment for the citizens of the country that are looking after the source of earning every now and then. One of the main responsibilities of the authority is to guard the interest of the mass, rather than a few. The policy which ensures the flow of money within the circle of some peoples, rather than all, it is an awful symptom of the economy indeed, the adversity of it can no longer be avoided unless famine and poverty. Very recently, various sources have added that in consequence of four business groups, the market price of sugar have gone up rather than downward. Hazi Selim, a businessman of Old Dhaka in Bangladesh and the member of Awami League, controls the sugar market single-handedly. A source has added that for insurance of sugar from overseas, he has paid 300 crore taka just for insurance charge which may give us an idea about the exact picture about the price of sugar paid to the foreign suppliers! When Ministry of Commerce had arranged a meeting with various business-groups headed by concerned Minister Faruk Khan, the absence of Mr. Hazi Selim hatched many rumors. The reason might have been to his position of a person belonging to the ruling party.   
Besides, we know a little about the actual information about the production of domestic sugar mills which are the integral part of our economic lifelines and if the local sugar mills could be given opportunity to be produced sugar at its maximum level, it can be expected to be received it by cheaper rate than it takes bit higher when import is urged. Every year, those sugar mills remain in loss mode and neither any party had shown their concerns over that nor questioned to the Minister of Industries  about the reason  local sugar  mills have been stumbled.
Regards to making hue and cry caused for rocketing of price for certain goods, though milk, beef, egg are essential commodities, seems to be exempted from the apprehension by the body  deal with.  
Last year, when Eid was very close, vested groups dispersed rumor in the name of Anthrax, which was a bluff and the main objective was to make hinder selling milk, milk power produced in the country in order to make passage for selling imported milk powder from overseas. The Profiteer injected a great deal of inducement to different institutions so that their economic interest might be served.  The speculation in this regard was corroborated by circumstantial evidence. Since material evidence which the state mechanism could recover, failed to discharge responsibility in this behalf, is verily susceptive that such ‘economic tragedy’ might have concerted in collaboration of a very strong syndicate that maintained close relation with the apex authority. Market reality shows that if the state mechanism is able to check the hoarders purported to make artificial crises in the market in conjunction with debarring from the local producers joining with the stream of market, various hectic situations might arise, for the consequence,  the mass lament when none to soothe them.  

B.

Milk Vita products: For comparative cheap price, MILK VITA products have huge demand, but for mismanagement products are insufficiently supplied to the consumers. Photographs of the sale center of Milk Vita at Mirpur-7 was taken 0n 24 August-2011 at about 2-30 PM which corresponds to the crowd and delivery of milk powder in a very fragile cartoon which may break the poly-packed powder and contaminate from left to right.

Is the Ministry of Local Government, Rural Development and Co-operative responsible on this behalf aware of that?

Since milk is a vital food which many people intake all the year round, and as I claimed to be various unwarranted rumor by the name of anthrax which  mostly affected the domestic  producer last year, I personally  tried to be  observed  to the  marketing  strategy of  ‘Milk Vita’,  the biggest milk producing industry in the country, where lots of local  milk producers are involved, I have  found some irregularities. Though many milk producers along with it for instance, Arong, Pran, Farm Fresh, Bikrampur Dairy serve Dhaka being the part of local milk producers, Milk Vita’s operation is below the standard of other companies.  Interviewing the shop keepers, and personal visit, near the Milk Vita industries, at Miprur-7, Dhaka, I have found that Milk Vita delivers milk once most of other private companies are delivered.  Being asked to the concerned persons on the spot, the reason was not discovered. Furthermore, I noticed to powder milk (Milk Vita brand), though it is very good in quality and in terms of price is lesser than  other imported milk  powders, those are neither  delivered to different small shops nor they are contracted with various  retail chain shops like Shwopno, Agora, Nandon,  Mina bazaar etc. from where the consumers may  get easily. Some retailers claimed that sales person of Milk Vita, though  irregularly supplies milk powder to the shops, fix up the  price  as it is  prescribed on its body, over the pack price they are not given no commission so they  do not purchase it for the avoidance of feud with the customers. The market price of milk powder of 500gms of Milk Vita brand is sold by 200 taka at its single showroom adjacent to its factory is imprinted 210 taka on its pack.  It is the lowest price other than any brands sold in the market; other brands are on average sold by 237-260 /500grms. It is imaginable how expansive half kilogram of milk-powder is! Whereas if milk vita could intensify its production level and fix up fewer price, for that reason, a lot of peoples might be able to consume.  For 1 litter of raw-milk, the farmers are paid 7 taka, (According to a source) which is sold by 50-60 taka per litter at the end.  The market value is much higher in comparison with the raw milk adding transportation cost.
The opportunity which the state mechanism could utilize to minimize the need by reducing the price, as economics suggests that when price is lower, the demand is higher, it can be worthy expectable that GOB should take  the measure  in order  stable the market price and to minimize the requirement of the  consumers.  When I visited to the factory showroom at Miprur 7 on 24 August, I saw a huge crowd who was buying, ghee, milk powder for Eid, whereas this bit cheaper goods (ghee, milk powder) are not marketed which may expect from this biggest co-operative milk producing industries in the country.   
What the GOB can do for the citizen in terms of making stable the market,

On the spot inspection and interviewing with various shopkeepers under very restricted level,  any hidden  collaboration with the agents of  importer have been  assumed, whereas  to go a fast,  cheaper  local foods should have been arranged to be  presented. In many western, country cheaper as well as branded (bit higher goods) are presented side by side and the consumers are given freedom to pick which is not observed in the case of Milk Vita products (particularly milk powder).

 

C.  
The understanding between GOB and private level should be amicable, fair and based on law.  None should have opportunity to make any party dismantled. However, in Bangladesh, this understanding has seemingly to be dismantled. The miserable condition of market suggests that the GOB is seemingly the commission -agent rather than the tax-taker where local entrepreneurs are less valued other than import.
If the goods, produced by the local producers, are in abundance, maintains demand and supply coherently, then the price of the goods may be checked unless otherwise is done by the concerned with whole mechanism. The organs of the state act on behalf of the peoples arranging manifold facilities which the peoples deserve.   A certain protocols are prescribed by the laws which the parliament make and which the producers and consumers are equally liable to be complied with. I
The price of potato is seemingly stable, and for presence of tricky collaboration, the state mechanism has failed to curve the hike of price of essential commodities on the eve of festivals which doubled the pains of mass. Deliberation of bad news nourished from this point which the ruling party of Bangladesh is liable to be noticed can not be avoided unless any other betterment is deliberated. For the reason the unfair and undue collaboration of entrepreneurs, importers, commission agents with the ruling elites which is the cause of rocketing the price showing excuse that previous government had grabbed money from the business class as well as declared corrupts without repaying, if the law prescribed to pay, then the Present GOB is similarly responsible to be snatched the sum which is reserved in the CONSOLIDATED FUND. According to a news published in the Daily Shakti on 24th December, 2009, Finance Minister Abul Mal Abdul Muhit had clearly declared that he would not repay the sum collected from various persons and business firms which should have been reserved in the consolidated fund. On the one hand, GOB shall remain reluctant to its repayment; on the other hand, wait in a reluctant mood letting the hoarder, profiteer suck the blood is a mere double standard.
To sum, on the eve of EID when the powder milk may make colorful the plate of the mass, debarring from the initiative to reach the door of the mass building proper marketing channel, the Ministry responsible to look after MILK VITA, can not discharge its onus of liability.