The food ministry has moved to tighten the spanner. It has made obtaining of a licence from the directorate of food by importers, millers, dealers, wholesalers and retailers of rice and wheat compulsory by this month. That the recent sudden rise in prices of all varieties of rice has prompted the food ministry to exercise its control on unscrupulous rice and wheat traders is quite clear. The authorities launched a drive against hoarders with the same purpose in mind. No business can be run without trade licences. This one from the directorate of food, if used with the express aim and intention, will be on top of that. Licence is a kind of registration that will help keep a tab on the traders, particularly the large ones. This will give the authorities a handle to put a leash on traders trying to play foul.
So far so good. But like many other well-intentioned move, this can as well leave scope for abuse. Particularly unacceptable is the deadline for obtaining licences. If retailers of rice and wheat all over the country are required to procure licences, it will be an uphill task both for the issuing authority and the intended obtainers. Should small retail traders obtain such licences at all? Actually, such retailers cannot manipulate the market for price rise. It is the big fish responsible for hoarding tens of thousands of tonnes of rice or wheat who need to be brought under the scanner. The millers are in an advantageous position to dictate terms because they procure paddy when the cereal is priced at the lowest and they hoard it for the future to call the shot.
The ministry is yet to issue the notification for obtaining licences. The probable date for issuance of the notification is October 10. This means there will remain only 20 days for procurement of licences. Is this feasible? The rush for licences is expected to be particularly heavy. There is a chance of abusing the situation by taking full advantage of the rush. It would be advisable to give a reasonable time for procurement of licence. Undue haste may end up producing results contrary to what is intended. If monitoring is the purpose, let it be done dispassionately and with a sense of purpose. First, it would be rational to direct the millers and big rice traders to comply with the order within a month or so and then gradually make it mandatory for the mid-level and others to follow suit.
The authorities deserve appreciation for exercising at least some sway over the big shots in the food business but its benefits are yet to reach the consumer level significantly. It should not be forgotten that it has been the record rice prices this time and just bringing down prices by Tk 2.0 or 3.0 is not enough. One thing is sure that rice price has not registered any rise in the international market. So, there is no valid reason for this outrageous rise in rice price in the domestic market. The government move looks good but the issue has to be handled carefully.
