Factors that influence to increase price of goods

Factors that influence to enlarge footing of goodsIntroductionControls the food commercialise legal injury of on the whole obligatory goods be the prime objective of the presidency. However, with the terms increases of essentials capturing headlines of our subject newspaper and TVs al virtu whollyy e realday. This equipment casualty-hiking task has become the main social problem in Bangladesh and it has great negative impacts on the pile. The poor gen successionl ken is suffering most in this problem. Besides, it also hindrance the growth and developing of the country. Ultimately, the goals of welf atomic number 18 state hampered call competent to lack of prudish prevailling the expense of necessary goods.There be m all reasons arse this problem. According to the finance and planning adviser, Mizan Azizul Islam, International cost hike of essential necessities as being responsible for high municipal worths. In most of the cases, supranational market se t is responsible for domestic fanfargon. Besides, production and production wooing, tradeation and result, preservation arranging, marketing policies, colloquy system etc atomic number 18 also responsible for this problem. Moreover, a group of furrow tribe be taking the advantages of these and increasing the price of necessary goods. This is unethical and unlawful.Factors that trance to Increase Price of GoodsSome factors ar influencing the overall situation of the market to increase the price ofnecessary goods. They ar-ProductionProduction follow delivery system grocery storeing strategy trade and instantUnethical railway line practice tendencySyndicationRetail sellers unlawful tendency towards benefit public(a) market price deprivation of government rules and its utiliseationProductionThe great deal production of goods across the country and planetaryly reduces the price of goods. If it is hampered, then it is impossible to control the price or keep the price o f all necessary good in the reach of the poor raft. This kind of problem happened when big countries much(prenominal) as China, India, Korea etc fail to produce their necessary goods. Last grade due to natural disaster India fail to produce rice as a result demand for rice grows up and a scarcity was summon in the global market and at the same time price for rice goes up at a tremendous rate*. And it had a impacts both in the global and local anesthetic market.*.Article on the newspaper ( The day by day Star )- Due to natural disaster India fails to produce rice to attend the local demand. So, they argon overtaking to buy and preserve rice from the global market.ally recognized aims.Production CostProduction appeal depends on availability of production materials much(prenominal) as seed, fertiliser, water, production equipments and the weather. Lack of every(prenominal) of them interrupts the production and increase the production comprise.According to the Section 171 .1014, 1 ratable entity that elects to subtract speak to of goods change for computing its taxable margin shall meet the amount of that cost of goods exchange as provided by this section. Moreover, the cost of goods sold includes all direct cost of acquiring or producing the goods (Labor cost, dim materials costs, intervention costs, storage costs, repairing and maintaining costs etc)*. In addition, the cost of goods does not include the side by side(p) costs in congenator to the taxable entitys goods (Renting or leasing costs, selling, statistical distributions, advertising costs etc)*.However, a group of bourgeois ar not following this rules and regulation and increasing the price of necessary goods for seeking more benefits. On the otherwise hand, the governments are not taking any locomote against this group of people though are there rules and regulations to prevent this. The only reason behind is that now a geezerhood more than 60% MPs are careperson.* Section 1 71.1012. Determination of Cost of Goods Sold.In this sectionThe 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 piazza produced(3) cost of materials that are consumed in the ordinary course of performing production activities(4) discourse costs, including costs attributable to processing, assembling, repackaging, and inbound transportation system costsPreservationLack of proper preservation system has a great impact of the character reference of the goods and on its price. Because of this most of the measure producer mainly the farmer drop off their inte stay to produce the goods. However, the government tries to make the cold storages in most of the prime cities. Further, it is not sufficient. Moreover, sometimes it is too much costlyfor the farmers and so on. Every socio-economic class on the button for the lack of cold storage, farmers are dropping out th eir goods in the ponds, rivers. Such as tomato, potato, onion etc. Besides, it is a reason of environment pollution. The government is not taking the necessary travel to prevent this. As a result, the victim farmers are losing their interest for producing this goods and a scarcity is going to rise in the local market. Therefore, price of this goods are going high which is unreachable to the general mass.(5) storage costs, including the costs of carrying, storing, or warehousing property, subject to Subsection (e)(6) depreciation, depletion, and amortization, to the extent associated with and necessary for the production of goods, including recuperation exposit by Section 197, Internal Revenue Code(7) the cost of renting or leasing equipment, facilities, or real property presently utilize for the production of the goods, including pollution control equipment and intangible drilling and dry fixing costs(8) the cost of repairing and maintaining equipment, facilities, or real pro perty directly use for the production of the goods, including pollution control devices(9) costs attributable to research, experimental, engineering, and design activities directly link to the production of the goods, including all research or experimental expenditures described by Section 174, Internal Revenue Code(10) geological and geophysical costs incurred to i doughify and locate property that has the potential to produce minerals(11) taxes nonrecreational in relation to acquiring or producing any material, or taxes salaried in relation to services that are a direct cost of production(12) the cost of producing or acquiring electricity sold and(13) a contribution to a partnership in which the taxable entity owns an interest that is use to fund activities, the costs of which would otherwise be treated as cost of goods sold of the partnership, but only to the extent that those costs are related to goods distributed to the taxable entity as goods-in-kind in the ordinary course of production activ* The cost of goods sold does not include the following costs in relation to the taxable entitys goods(1) the cost of renting or leasing equipment, facilities, or real property that is not used for the production of the goods(2) selling costs, including employee expenses related to sales(3) distribution costs, including outbound transportation costs(4) advertising costs(5) idle ease expense(6) rehandling costsMarketingStill in our country, there are no proper marketing policies of the government. The lower kernel division, middle class and amphetamine class businessperson are controlling the markets. well-nigh of the times the farmers are deprived their due prices. The middle class businessperson is unethically increasing the benefit margins. On the other hand, regarding imported goods, the businessperson are syndicating and increasing the prices of goods very high. As a result, for both of this system nationally produced goods and imported goods the consumers of our country are victims of this unethical business. Most of the times the government are the co-sharer of these unethical activities of the businessperson. In one sense, due to dishonesty and rottenness justice is like a golden deer for people of Bangladesh. Therefore, the price controlling is hard to reach without development of the humanity.Besides this in Bangladesh, the business people are not following the perfect marketing strategy. In addition, the government has a lack of control on the over all market condition. Sometimes-due to this many businessperson starts to market their products without testing it and maintaining the prime(a)*. Moreover, they revolve about on advertisementsand start to market the products at a low price. As a result, the reputed companies who are maintaining the quality of the products it becomes tough for them to sustain in the market. Because they cannot able to market the products at a cheaper rate like their competitors. As a result, the ge neral people deal to buy the quality products at a higher rate.Communication ProblemCommunication problem influences to increase the price of necessary goods such as vegetables, imported goods etc. Without proper communication problem, it is tough to distribute the goods properly. It is great problem in Bangladesh and we are suffering this problem year after year. organization is trying to improve the communication problem. However, the steps they are taking are not sufficient for our country. Most of the times in the rainy seasons, prices of goods due to the communication problem. Moreover, every year flood is a common natural disaster for Bangladesh that totally breaks put down the transportation system of us. On the other hand, each and every the transportation companies put on to face many problems. Our government does not take any steps to secure the communication system. Groups of people take the advantage and pull together money from the transportation sphere of influe nces such as police, Mastans and so on. Due to this types of unethical activities, the cost of goods are incrasing.ExportAccording to the Export policy 1997-2002 the main objectives are to succeed optimumnational growth, narrow down the gaps surrounded by export and import, to make theexportable items more attractive, to develop and magnify alkali and so on*.In the year of 2009-2010, we export $18.36 billion. For Bangladesh the main export items are garments, textiles, jute and jute goods, ships, leather, produce, frozen fish and seafood, pharmaceuticals, ceramics, cement. Our main export partners are US 31.8%, Germany 10.9%, UK 7.9%, France 5.2%, Netherlands 5.2%, Kuwait 4.9%, lacquer 4.5%,Italy 4.42% (2000). However, we fail to achieve our export objectives due to political disturbance, economical condition, natural disaster and so on. Every year we are exporting less and merchandise more. As a result, it create a negative impacts on our scrimping and price of goods are go ing up. Because of this crank economic condition is arising day by day.The economy of Bangladesh is constituted by that of developing country. Its per with child(p) income in 2008 was est. US$1,500. This is lower than India and Pakistan. Bangladesh ranked as the 48th largest economy in the world in 2008. In Bangladesh the economy has grown at the rate of 6-7% p.a. Due to infrastructure problems in transportation, communications, reason supply and water distribution Bangladesh can not able to achieve it export objectives. These are the reason, which influence to increase the price of necessary goods.Objectives ( Export policy 1997-2002)The principal objectives of this policy are 1. To achieve optimum national growth with increase of export in regional and world-wide market2.. To narrow down the gap between the countrys export earning and import payment through achievement of the export targets 3.. To undertake timely steps for production of exportable goods at a competitive pric e with a view to exporting and strengthening existing export markets and fashioning dent in new markets4.. To take the highest advantage of entering into the post Uruguay openhandedized and globalized international market5. To make our exportable items more attractive to the market through product diversification and quality improvement6.. To establish backward gene linkage industries and services with a view to using more indigenous bare materials, expand the product base and identify and export higher cheer added products 7. To simplify export procedures and to rationalize and solidify export in centives8. To develop and expand infrastructure 9. To develop trained human resources in the export sphere of influence10. To raise the quality and grading of export products to internation importationAccording to the Import Policy 1997-2002 the main objectives are to make the import policy matched with the changes in world-market, to ensure the growth of industries and so on*.In the year of 2008 Bangladesh imports$20.205 billion. Our main imported items are machinery and equipment, chemicals, iron and steel, raw cotton, food, crude fossil oil and petroleum products. Our main import partners are China 11.4%, India 9.1%, Singapore 8.5%, Hong Kong 7.1%, Japan 6.5%. regimen is sincerely committed to fostering a gradual development of free market economy in the light of GATT agreement. For the interest of export promotion investment in the country, it is necessary to have a farsighted term, stable, facilitative liberalImport Policy. The present government has taken steps to extend the duration of the Import Policy from two years to cinque years. Efforts have been made to make the ImportPolicy easier and more liberal by relaxing or rescinding the regulatory provisions of the previous Import Policy. Provisions have already been made to allow import of capital machinery and industrial raw materials on consignment basis without the cover of the garner of Credit.M ain objectives of Import policya) To make the Import Policy congenial with the changes in world-market that have occurred as a result of the introduction of market economy and signing of the GATT Agreement.b) To simplify the procedures for import of capital machinery and industrial raw materials with a view to promoting export, andc) To ensure growth of the indigenous industry and availability of high quality goods to the consumers at a reasonable price organisation has taken steps for quality control in the import of cement, fertilizer etc. In order to protect the interest of the consumers, steps are afoot to ensure that in future all imported consumer items line up to a specified standard of quality. In the present Import Policy Order, second hand/reconditioned machinery are importable subject to fulfillment of certain conditions. little by little efforts will be made to classify the machinery under H. S. Code. However, lack of proper management sometimes the import polices are disrupted. As a result, it takes too much time to discharge/unload the goods from sea-port. So, the importers have to increase the price of the goods. Besides, syndicating problem is a great reason to increase the market price of imported goods.Unethical Business Practice TendencyMost of the cases upper class and middle class businessperson are dishonest, selfish and they are acting as the head of the society*. They are controlling the local market price as their own wish. Besides, they are controlling the era of devils and making wealth and property. Moreover, they are also responsible for syndicating and increasing the price of local market goods. Among the politician more than 60% are businessperson*, they deals with the politicians and political parties and using their power in the wrong direction. Besides, corrupting the business sectors as much as they can just to make profits. In words, it is the Kingdom of dishonest, wealthy and powerful persons. The mass people are mazed to control the price of necessary goods.According to a idea in*Amar Desh (May 11, 2007), prices of essential food items have increased 25 per centon an average in the past four months. According to a 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 government of Fakhruddin Ahmed that fancied office after the proclamation of a state of emergency on January 11. According to thegovernments own statistics, inflation increased from just fewer than six per cent inJanuary this year to almost 7.5 per cent by March. While the government appears to be in denial suggesting that inflation is not really out of control and quite below the riskiness level, experts fear that it might, in fact, have crossed the double-digit mark driven by the soaring food prices.*According to SLATE magazine (2007), about our very own mafia groups that grouphas come to be known, and often referred to in the media, as the syndicate. Despite the fact that academics, researchers and even politicians have acknowledged such collusion, its beingness is denied upfront, both by government officials and businesspeople, in a behavior that can be likened to that regarding the mafia. For the longest time, the existence of the mafia, or rather Cosa Nostra, was denied by insiders as well as government officials till misconceptions and myths were laid to rest by, what came to be known as, the Maxi Trial in a court in Sicily over a hundred years after its existence was officially reported. As for the syndicate, it has proved to be invincible and even resistant to a state of emergency, which has not been able to curbRetail SellersThese types of people are also corrupted. They are mainly creating artificial crises of the product in the local market*. As a result, demand for those goods goes up. Moreover, sometimes the retailers cracking gift items with the low quality products. As a result, demand for quality pro ducts goes down and they take the advantage by stocking the products.After few days later they market the products at a higher price.Global Market PricesIt is also one of the prime reasons for increasing the price of necessary goods. We are insufficient to produce the necessary goods. Therefore, we have to depend on importing goods from foreign countries. Moreover, we need to depend on favorable price of goods of the world market.*THE RESTRICTIVE TRADE PRACTICES, MONOPOLIES AND PRICE CONTROL ACTCommencement beginning(a) Februar, 1989An Act of Parliament to encourage competition in the economy by prohibiting restrictive trade practices, controlling monopolies, concentrations of economic power and prices and for connected purposesGovernment PrecautionIn all the cases the government steps towards controlling the price is also major factor. However, I am disclosing with regret that the every sector in our country are controlled by the corrupted businessperson. Most of the cases the rul es of laws are absent and the implementations of laws are in near zero percentage. Those who will implement the law, most of them are highly corrupted. Therefore, the result is a big zero. The mass people with a new hope changing the government every 5 years. However, the result is more disappointed and more distress. In a word, it is a land of all evils and injustice. Without developing, the morality it is absurd to change this hails condition. We have to start a revolution from young generation.ConclusionDue to all of these lacking it is going to be impossible to control the price of necessary goods. The very poor people are suffering most of the cases by this problem. As a result,the major portion of the people are going as burden for the society. Therefore, we have to take precautions to avoid this problem for making a happy, wealthy and prosperous Bangladesh.If we want to achieve this then we have to take serious action and frame rough-and-ready laws for the elimination of the middle men groups existing various trading circles, by framing effective measure to control bribery between law enforcing agencies and trades. A good co-ordination efforts and monitoring cells should be formed to observe and nab price level of essential commodities in different trade center of the country. Besides,committees should be constituted for the co-operation, co-ordination and exchange of information in between different Government officials entrusted to check price level, by re-introducing old rationing system by the Government to stable the prices, by identifying syndicate groups and taking appropriate action against them.