Dhaka, April 29 -- As prices of onions and potatoes were high last year, farmers increased their cultivation this year. This has resulted in low prices, according to stakeholders on the ground. The price of eggs also fell because farmers increased egg production in response to high egg prices last year.
The fall in prices of these food items is what economists would predict. High production (supply) is supposed to lead to a low price, and low production is supposed to lead to a high price.
Last year, prices of these commodities were high, and government officers were quick to blame a "syndicate" (cartel). Producers denied that there was any syndicate and argued that hot weather and flooding had reduced production and increased prices. T...
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