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Friday, 18 May 2012

Reckless extortion pushes up prices of essentials: Minister

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Reported by: UNB/SI/SMR
Reported on: August 16, 2009 18:47 PM
Reported in: National
Dhaka, Aug 16 (UNB) - Reckless extortion through the supply chain makes vegetables and other essentials dearer as two senior ministers of the government Sunday recognized the criminalization of the market system.

Food and Disaster Management Minister Dr Abdur Razzak was bold enough to criticize his own government when 70 percent of the transportation costs apparently go to the pockets of extortionists.

He expressed frustration seeing the result of his own personal survey among vegetable traders and truckers, and said he conveyed the findings of his survey on extortion to the intelligence agencies for
further probe.

“You (the minister) know who we have to pay during our journey from farmers end to consumer market,” Dr Razzak quoted a truck owner from his constituency, who informed him about the reckless extortion.

Echoing with Dr Razzak’s revelation at a function at Hotel Sheraton, Finance Minister AMA Muhith sought the next 10 years free of “greed, criminalization and extortion” to make Bangladesh a happy, prosperous
and peaceful country.

“If we can continue next 10 years peacefully and curb greed, criminalization and extortion, we’ll build a happy and prosperous country,” he said.

The allegation of extortion and criminalization in the commodity supply chain has long been prevailing in the country, but so far remained unaddressed.

The two ministers delved deeper into the problem than their colleague Commerce Minister Faruk Khan, who is charged with monitoring the price situation to ensure fair prices for the consumers as committed by the government. Faruk Khan often blames profiteering by businessmen for the rising prices.

Rahimafrooz Superstore `Agora’ organized the function to sign a memorandum of understanding (MoU) with Hridoye Mati O’ Manush Krishak Samabay Samity Limited, a cooperative of vegetable growers.

Under the agreement, Agora will procure vegetables directly from the growers for its consumers. The cooperative has a membership of 1,000 farmers. Of them, around 30 farmers attended the function.

Addressing the signing ceremony, popular media personality on agriculture issues Shykh Seraj and farmers from the cooperative pointed out a wide difference in prices at growers’ level and the
consumers’ end.

The Food Minister said the development of agriculture, the backbone of the country’s economy, is unlikely to take place as long as the country would fail to go for commercial production.

In response to the concern over farmers’ getting very little for their produces, he spoke of extortion that takes away the lion’s share of the commodity price.

“I don’t know whether it would be wise for me, as a minister, to tell you the story of extortion,” said Dr Razzak. To begin with, he said a truck owner received only Tk 7,000 for a trip from Jessore to
Mymensingh although the trip was pre-settled at Tk 28,000.

“The rest Tk 21,000 had to be paid as extortion,” he said, adding that the truck driver paid Tk 1,700 each at only two points within 15 kilometre distance in Gazipur.

“Who you had to pay,” the minister asked the truck owner, personally known to him from his constituency in Modhupur, Tangail. The response was: “You know who.”

The Food Minister also received similar allegations of extortion about some spots and routes across the country, including Manikgaj as well as Rajshahi-Dhaka and Dhaka-Sylhet routes.

He also cross-checked the allegation with a vegetable trader from his Tangail constituency and asked how the traders make profit after paying the extortionists. “We deprive the farmers and fleece people like you who are living in Dhaka,” he quoted the trader as saying.

Dr Razzak said the government was trying to improve the market system and the wholesale markets in the capital, reiterating the government’s commitment to ensure fair price for the farmers as well as the
consumers.

He demanded of the Finance Minister to allow duty-free import of the cool-chain vehicles to help reduce the supply cost from farms to markets as well as to ensure supply of quality goods.

Rahimafrooz managing director Niaz Rahim urged exemption of tolls from establishments like Jamuna Bridge for transports carrying agriculture products. He also demanded allowing duty-free import of
trucks having cooling system.
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