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** People don't need more government servants to make election cheating easier ** Bangladesh ranks 12th most corrupt country ** Power tariff hiked again ** DITF- 2023 ends with $39.48m export orders ** Children frolicking over a ride taking risks on Tuesday, as two dangerous high voltage transformers remain installed adjacent to a park of Old Dhaka’s Laxmi Bazar St. Gregory School. NN photo ** What action has been taken to prevent Dhaka's air pollution ** Blinken criticises settlements but stresses US support for Israel ** IMF approves $4.7 billion loan for Bangladesh ** Amar Ekushey Book Fair kicks off today ** We want to know how corruption is to be eliminated under a corrupt government ** Thousands of leaders and activists of BNP join the party's march programme towards Jurain from Jatrabari with banners, festoons, national flags and party flags in their hands on Monday. NN photo ** Foreign aids disbursement, commitment declined ** Awami League leaders and activists gather at a peaceful rally in front of party's central office at Bangabandhu Avenue in the capital on Monday which was arranged by Dhaka South City unit of Awami League. NN photo ** SSC, equivalent exams from April 30 ** HC issues rule on formulation of policy over handcuffing, shackling of accused ** Zamzam water sales halted temporarily ** SIBL Chairman and AMD resigned ** Dr. Zafrullah honoured by UK organisation ** Rohingyas now become a big challenge for us: RAB DG ** EC wants to know whereabouts of B'baria missing candidate ** Govt would not find way to flee: Fakhrul ** Legal action will be taken against attackers on Engr. Yazdani: Minister ** AL never flees, works for people's welfare: PM ** 2 walk to gallows for violating minor girls ** Corruption a major barrier in ensuring a fair business environment: CPD **

Power crisis is hitting the country hard

01 November 2022


The ongoing energy crisis is hurting the country's crucial food and industrial production. The planned rationing of electricity supply due to the fuel oil crisis as a result of depleting foreign reserves has caused people to suffer immensely for the last few months. In many places of the country, people have led their lives without electricity for as many as eight hours a day. But two reports from this newspaper yesterday painted a very grim economic outlook because of the ongoing power crisis.
Firstly, as the consumer goods producing companies are not getting electricity, the volume of their production is greatly compromised as a result of which there can be a severe shortage of supply of their products in the market. This may, in turn, shoot prices of these commodities. The price of wheat flour/atta has already gone too high in the market. But as the flour production has reportedly come down to half of their capacity for many mill owners, it will very normally affect the price of many consumer products even further.
Due to failure of market monitoring, even in normal times consumers in Bangladesh usually pay more than what should be the actual price of a commodity compared to its price in South Asian countries. According to reports, wholesale traders are not getting enough goods even after depositing money in advance as the production of various products including sugar, flour and atta has reduced by almost half.
The same crunch is noticed in the country's RMG production and it is feared that RMG export growth may be reduced 20 per cent in the month of October just passed. This is primarily due to the energy crisis as well as decline of work orders and high inflation in European countries.
Work order from the west will not increase unless the Ukraine-Russia war sees a decisive conclusion-there is little chance that it will be soon-but against the BGMEA's demands, would this inept and corrupt government be able to provide them with an uninterrupted supply of power? The businesses of the country said a few days ago that they are even ready to pay a higher price than what they are paying now for per unit of electricity.
With shrinking food production and rising commodity prices as well as fall in RMG export triggering even faster depletion of reserves, the country is inexorably moving towards a great crisis ahead. Economic prosperity is far away now, the most critical question now is: how will the majority of people who are poor survive in the hard days that are coming?        


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