Factors that influence to increase price of goods


Controls the marketplace price of most necessary goods will be the prime target of the government. However, with the purchase price increases of necessities capturing headlines of our own national magazine and Television sets almost day-to-day. This price-hiking problem is becoming the main interpersonal problem in Bangladesh and it includes great negative influences on individuals. The poor general mass is suffering most in this problem. Besides, it also hindrance the progress and development of the united states. In the end, the goals of welfare condition hampered anticipated to insufficient proper controlling the price tag on necessary goods.

There are multiple reasons behind this problem. Based on the money and planning adviser, Mizan Azizul Islam, "International price hike of essential requirements as being in charge of high home prices. " In almost all of the situations, international selling price is accountable for local inflation. Besides, development and development costing, export and transfer, preservation system, marketing procedures, communication system etc are also responsible for this problem. Additionally, a group of business people are taking the features of these and increasing the price tag on necessary goods. This is unethical and unlawful.

Factors that Effect to improve Price of Goods

Some factors are influencing the overall situation of the market to increase the price of

necessary goods. They are-


Production cost

Preservation system

Marketing strategy

Export and Import

Unethical business practice tendency


Retail retailers unlawful propensity towards benefit

Global market price

Lack of government rules and its implementation


The mass creation of goods nationally and internationally reduces the price of goods. If it is hampered, then it is impossible to control the purchase price or keep carefully the price of all necessary good in the reach of the poor people. This sort of problem happened when big countries such as China, India, Korea etc fail to produce their necessary goods. Last year scheduled to natural devastation India neglect to produce rice as a result demand for rice grows up and a scarcity was arise in the global market and at the same time price for grain rises at a tremendous rate*. And it acquired a influences both in the global and local market.

*. Article on the magazine ( The Daily Legend )- Due to natural devastation India does not produce rice to meet the local demand. So, they are going to buy and maintain grain from the global market.

ally recognized levels.

Production Cost

Production cost depends on availability of production materials such as seed, fertilizer, normal water, production equipments and the elements. Lack of any of them interrupts the production and improve the development cost.

According to the Section 171. 1014, 1 taxable entity that elects to subtract cost of goods sold for processing its taxable margin shall determine the quantity of that cost of goods sold as provided by this section. Moreover, the price tag on goods sold includes all immediate costs of acquiring or producing the products (Labor costs, raw materials costs, controlling costs, storage space costs, repairing and retaining costs etc)*. Furthermore, the price of goods does not include the pursuing costs with regards to the taxable entity's goods (Renting or leasing costs, retailing, distributions, advertising costs etc)*.

However, a group of businessperson are not following this rules and rules and increasing the price tag on necessary goods for seeking more benefits. Alternatively, the governments are not taking any steps against this group of individuals though are there rules and regulations to prevent this. Really the only reason behind is the fact more recently more than 60% MPs are businessperson.

* Section 171. 1012. Perseverance of Cost of Goods Sold.

In this section
The cost of goods sold includes all direct costs of acquiring or producing the goods, including

(1) labor costs;

(2) cost of materials that are an integral part of specific property produced;

(3) cost of materials that are consumed in the normal course of performing creation activities;

(4) handling costs, including costs due to processing, assembling, repackaging, and inbound transport costs;


Lack of proper preservation system has a great impact of the quality of the goods and on its price. Because of this most of the days manufacturer mainly the farmer lose their interest to create the products. However, the government tries to help make the wintry storages in almost all of the prime metropolitan areas. Further, it isn't sufficient. Moreover, sometimes it is too much costly

for the farmers and so forth. Every year simply for the lack of cold storage space, farmers are shedding out their goods in the ponds, rivers. Such as tomato, potato, onion etc. Besides, it is grounds of environment pollution. The federal government is not taking the necessary steps to prevent this. Because of this, the victim farmers are getting rid of their interest for producing this goods and a scarcity will rise in the neighborhood market. Therefore, price of the goods 're going high which is unreachable to the general mass.

(5) storage area costs, including the costs of holding, storing, or warehousing property, subject to Subsection (e);

(6) depreciation, depletion, and amortization, to the magnitude associated with and essential for the development of goods, including restoration detailed by Section 197, Internal Income Code;

(7) the cost of letting or leasing equipment, facilities, or real property straight used for the creation of the goods, including pollution control equipment and intangible drilling and dried gap costs;

(8) the expense of repairing and preserving equipment, facilities, or real property directly used for the creation of the goods, including pollution control devices;

(9) costs attributable to research, experimental, executive, and design activities straight related to the development of the goods, including all research or experimental expenditures described by Section 174, Internal Earnings Code;

(10) geological and geophysical costs incurred to identify and discover property that gets the potential to create minerals;

(11) fees paid with regards to acquiring or producing any materials, or fees paid with regards to services that are a primary cost of development;

(12) the price tag on producing or acquiring electricity sold; and

(13) a contribution to a collaboration where the taxable entity possesses a pastime that is utilized to fund activities, the expenses of which would in any other case be cured as cost of goods sold of the relationship, but only to the level that those costs are related to goods allocated to the taxable entity as goods-in-kind in the normal course of creation activ

* The cost of goods sold will not include the following costs with regards to the taxable entity's goods

(1) the price of letting or leasing equipment, facilities, or real property that is not used for the development of the goods;

(2) providing costs, including employee expenditures related to sales;

(3) circulation costs, including outbound travelling costs;

(4) advertising costs;

(5) idle facility expense;

(6) rehandling costs;


Still inside our country, there are no proper marketing regulations of the government. The lower middle income, middle class and upper course businessperson are managing the markets. Most of the times the farmers are deprived their due prices. The middle category businessperson is unethically increasing the benefit margins. On the other hand, regarding imported goods, the businessperson are syndicating and increasing the costs of goods very high. As a result, for both of this system nationally produced goods and brought in goods the consumers in our country are victims of the unethical business. Most of the times the federal government will be the co-sharer of the unethical activities of the businessperson. In a single sense, anticipated to dishonesty and corruption justice is like a gold deer for people of Bangladesh. Therefore, the purchase price handling is hard to attain without development of the humanity.

Besides this in Bangladesh, the business enterprise people aren't following perfect marketing strategy. In addition, the federal government has too little control on the total market condition. Sometimes-due to this many businessperson begins to market their products without screening it and maintaining the quality*. Additionally, they focus on advertisements

and start to market the products at a low price. Because of this, the reputed companies who are keeping the quality of the products it becomes rough for them to sustain in the market. Because they can not able to market the products at a cheaper rate like their competition. As a result, the general people have to buy the quality products at an increased rate.

Communication Problem

Communication problem influences to raise the price of necessary goods such as fruit and vegetables, brought in goods etc. Without proper communication problem, it is difficult to distribute the products properly. It is great problem in Bangladesh and we are struggling this problem year after year. Government is wanting to increase the communication problem. However, the steps they are simply taking are not sufficient for our country. A lot of the times in the rainy periods, prices of goods due to the communication problem. Moreover, every year flood is a common natural catastrophe for Bangladesh that totally reduces the transport system of us. Alternatively, each and every the vehicles companies have to face many problems. Our authorities will not take any steps to secure the communication system. Communities of folks take the advantage and collect money from the travel areas such as police, Mastans and so forth. Due to this types of unethical activities, the cost of goods are incrasing.


According to the Export Insurance policy 1997-2002 the primary objectives are to attain optimum

national growth, thin down the spaces between export and import, to make the

exportable items more appealing, to develop and increase infrastructure therefore on*.

In the entire year of 2009-2010, we export $18. 36 billion. For Bangladesh the key export items are garments, textiles, jute and jute goods, boats, leather, produce, iced fish and seafoods, pharmaceuticals, ceramics, cement. Our main export lovers are US 31. 8%, Germany 10. 9%, UK 7. 9%, France 5. 2%, Netherlands 5. 2%, Kuwait 4. 9%, Japan 4. 5%,

Italy 4. 42% (2000). However, we fail to achieve our export goals due to political disturbance, cost-effective condition, natural catastrophe etc. Every year we have been exporting less and importing more. As a result, it create a negative influences on our overall economy and price of goods are going up. Because of this unstable financial condition is arising daily.

The economy of Bangladesh is constituted by that of expanding country. Its per capital income in 2008 was est. US$1, 500. This is less than India and Pakistan. Bangladesh positioned as the 48th greatest economy on earth in 2008. In Bangladesh the overall economy is continuing to grow at the rate of 6-7% p. a. Because of infrastructure problems in transportation, communications, power supply and water syndication Bangladesh cannot able to achieve it export objectives. These are the reason, which influence to boost the price of necessary goods.

Objectives ( Export policy 1997-2002)

The principal goals of this insurance policy are

1. To attain optimum national growth through increase of export in local and international market;

2. . To slim down the space between your country's export getting and import payment through achievement of the export targets ;

3. . To attempt timely steps for production of exportable goods at a competitive price with a view to exporting and strengthening existing export marketplaces and making dent in new markets;

4. . To have the highest advantage of entering into the post Uruguay liberalized and globalized international market;

5. To create our exportable items more attractive to the market through product diversification and quality improvement;

6. . To determine backward linkage sectors and services with a view to using more indigenous raw materials, expand the merchandise platform and identify and export higher value added products ;

7. To simplify export techniques and also to rationalize and solidify export bonuses;

8. To build up and grow infrastructure ;

9. To build up trained human resources in the export sector;

10. To raise the quality and grading of export products to internation


According to the Import Policy 1997-2002 the key objectives are to help make the import policy appropriate for the changes in world-market, to guarantee the growth of industries and so on*.

In the year of 2008 Bangladesh imports$20. 205 billion. Our main brought in items are equipment and equipment, chemicals, flat iron and steel, raw cotton, food, crude petrol and petroleum products. Our main import companions are China 11. 4%, India 9. 1%, Singapore 8. 5%, Hong Kong 7. 1%, Japan 6. 5%.

Government is sincerely focused on fostering a continuous development of free market economy in the light of GATT arrangement. For the interest of export advertising & investment in the country, it is necessary to have a long term, stable, facilitative & liberal

Import Policy. Today's government has taken steps to extend the length of the Transfer Policy from two years to five years. Attempts have been made to make the Import

Policy easier and much more liberal by calming or rescinding the regulatory provisions of the prior Import Policy. Procedures have been completely designed to allow import of capital equipment and industrial recycleables on consignment basis without the cover of the Letter of Credit.

Main objectives of Import policy

a) To make the Import Policy Appropriate for the changes in world-market that contain occurred as a result of the release of market overall economy and putting your signature on of the GATT Arrangement.

b) To simplify the steps for transfer of capital machinery and industrial recycleables with a view to promoting export, and

c) To ensure development of the indigenous industry and option of high quality goods to the consumers at an acceptable price

Government has used steps for quality control in the transfer of cement, fertilizer etc. In order to protect the eye of the consumers, steps are afoot to ensure that in future all brought in consumer items comply with a given standard of quality. In the present Import Policy Order, second hands/reconditioned machinery are importable at the mercy of fulfillment of certain conditions. Slowly and gradually efforts will be made to classify the equipment under H. S. Code. However, insufficient proper management sometimes the transfer polices are disrupted. Because of this, it takes too much time to release/unload the goods from sea-port. So, the importers have to raise the price of the goods. Besides, syndicating problem is a superb reason to improve the selling price of brought in goods.

Unethical Business Practice Tendency

Most of the circumstances upper category and middle income businessperson are dishonest, selfish and they're acting as the head of the modern culture*. They can be controlling the local selling price as their own wish. Besides, they are simply controlling the age of devils and making riches and property. In addition, they are also in charge of syndicating and increasing the price tag on local market goods. Among the politician more than 60% are businessperson*, they deals with the politicians and politics parties and utilizing their power in the wrong course. Besides, corrupting the business enterprise sectors just as much as they can just to make revenue. In words, it is the Kingdom of dishonest, prosperous and powerful persons. The mass people are helpless to regulate the price of necessary goods.

According to a written report in

*Amar Desh (May 11, 2007), prices of essential foods have increased 25 per cent

on the average before four months. Regarding to a written report in New Age (May 11, 2007), prices rose between five and 50 per cent during the same period- most of it under the military-backed interim federal of Fakhruddin Ahmed that assumed office after the proclamation of circumstances of disaster on January 11. Corresponding to the

governments own reports, inflation increased from just less than six per cent in

January this season to almost 7. 5 % by March. As the government is apparently in denial recommending that inflation is not really uncontrollable and quite below the risk level, experts dread that it might, in truth, have crossed the double-digit tag powered by the soaring food prices.

*According to SLATE publication (2007), about our personal mafia organizations that group

has come to be known, and frequently described in the press, as the syndicate. Despite the fact that academics, researchers and even politicians have acknowledged such collusion, its presence is denied upfront, both by federal government representatives and businesspeople, in a fashion that can be likened compared to that regarding the mafia. For the longest time, the life of the mafia, or alternatively Cosa Nostra, was denied by insiders as well as administration officials till misconceptions and misconceptions were laid to relax by, what had become known as, the Maxi Trial in a courtroom in Sicily over 100 years after its lifestyle was officially reported. For the syndicate, it offers proved to be invincible and even immune system to a state of emergency, which has not had the opportunity to curb

Retail Sellers

These types of men and women are also corrupted. They are really mainly creating man-made crises of the merchandise in the neighborhood market*. Because of this, demand for those goods goes up. Furthermore, sometimes the vendors offer present items with the reduced quality products. As a result, demand for quality products falls plus they take the benefit by stocking the products.

After few days later they market the products at a higher price.

Global Market Prices

It is also one of the perfect known reasons for increasing the price tag on necessary goods. We have been insufficient to produce the necessary goods. Therefore, we must rely upon importing goods from overseas countries. Moreover, we need to depend on advantageous price of goods of the world market.


Commencement: 1st Februar, 1989

An Function of Parliament to encourage competition throughout the market by prohibiting restrictive trade tactics, controlling monopolies, concentrations of economic electricity and prices and then for connected purposes

Government Precaution

In all the circumstances the federal government steps towards handling the purchase price is also major factor. However, I am disclosing with regret that the every sector in our country are managed by the corrupted businessperson. A lot of the cases the guidelines of regulations are absent and the implementations of regulations are in near zero ratio. Those who will implement regulations, most of them are highly corrupted. Therefore, the effect is a major zero. The mass people with a new hope changing the government every 5 years. However, the result is more disappointed plus more distress. In short, it is a land of all evils and injustice. Without growing, the morality it is absurd to change this hails condition. We have to begin a revolution from young era.


Due to all of these lacking it is going to be impossible to control the price of necessary goods. The poor people are suffering most of the circumstances by this problem. Because of this,

the major portion of the people are going as burden for the culture. Therefore, we must take safety measures to avoid this problem for making a happy, wealthy and successful Bangladesh.

If you want to achieve this then we must take serious action and frame effective laws for the removal of the middle men groups existing various trading circles, by framing effective measure to regulate bribery between legislations enforcing agencies and trades. A strong co-ordination attempts and monitoring cells should be shaped to see and check price degree of essential commodities in various trade middle of the united states. Besides,

committees should be proven for the co-operation, co-ordination and exchange of information among different Government officers entrusted to check on price level, by re-introducing old rationing system by the Government to stable the prices, by determining syndicate communities and taking appropriate action against them.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)