Composition on price hike of daily commodities

The composition on price hike of daily commodities is an important short composition for the examinees of SSC and HSC. So, students should practice writing the composition price hike of daily commodities to get good marks in their exams.

The writer has written the composition highlighting the reasons and results of the present price hike. The language of the composition is simple and easy. So the students will easily understand it.

Best wishes to the students.

After reading the composition students will be able to answer the following questions.

  • What is a price hike?
  • Why does a price hike occur?
  • What are the reasons behind the price hike?
  • What are the effects of price hikes on our lives?
  • How to control price hikes?

Price hike of daily commodities

Price hike of daily commodities means the rise of prices of daily commodities. For our survival, we use so many commodities. Among them, food, clothes, and different household chores are the most important. The earnings of most of the people are limited or fixed. They have to maintain their family with their limited income. If the price of the daily commodities increases they face a great problem. Recently the prices of various necessary commodities such as edible oil, rice, sugar, onion, wheat, food, fruit, fuel, etc. have increased alarmingly. This rise has affected the normal life of the common people.

There are many reasons for the price hike. We can divide the reasons mainly into two categories, natural and artificial. The reasons are discussed below.

Natural reasons for price hike

Natural calamity: Floods, storms, droughts, and heavy rainfall are some natural calamities for which the production of different daily products is hampered. And for this, the prices of everyday commodities go up.

Genuine shortage: Because of natural calamity production of daily useful goods may hamper. If there is war or political unrest normal transportation of commodities hampers. These are some genuine reasons for the price hike.

Population growth: If a huge number of people live in a small area of land there is an imbalance in production and consumption. As a result, the prices of daily commodities increase by leaps and bounds.

Inadequate agricultural production: Agricultural production is an important factor in increasing and decreasing the prices of various daily commodities. If the agricultural production is plenty the prices of essential commodities remain controlled. But if the agricultural production hampers due to natural or any other reason the prices of everyday commodities go up.

Inflation: Whenever there is enough money in the hands of the people but there is a shortage of everyday essential products in the market automatically the prices of the commodities go up. This is inflation. Inflation is a situation when people have money in their hands but they cannot buy the necessary things because things are not available in the market.

Artificial reasons for price hike

Artificial shortage: Sometimes dishonest businessmen create an artificial shortage of different useful goods. Through this illegal system, they make an abnormal profit.

Hoarding: Hoarding is another reason for price hike. The big businessmen buy agricultural products from the farmers or markets when the price is cheap. Then they create an artificial shortage in the market and sell the products at a high price.

Political unrest: Political unrest is also a very important reason for price hike.

Inadequate industrial production: Industrial production is an important factor in controlling price hikes. A country has to import different commodities if the country cannot produce those things in its industry. Domestic and enough production of necessary goods makes the products to be cheaper. On the other hand, if a country imports those things from foreign countries automatically the prices become high.

Fluctuation of the price of petroleum: The price of petroleum is a very important factor in increasing and decreasing the prices of essential goods. In the international market, the price of petroleum always fluctuates. And it has a great impact on the prices of goods. Transportation cost is an element in pricing. If the price of petroleum increases, the transportation cost of goods also increases, and eventually, the prices of goods also increase. Similarly, the prices of goods decrease if the price of petroleum decreases.

Taxation by the government: By imposing VAT and taxes the government can increase the price of various goods. Similarly, by decreasing VAT and tax the government can decrease the price of goods.

Impacts of price hike of daily commodities

Price hike of daily commodities harms the lifestyle of people of all classes, especially in the lower and middle-income groups. The effects are a little bit different in the lower and higher-income groups. Because the consumption levels of low-income and high-income people are different. Low and middle-income people spend most of their money buying food.

However, the scenario is quite different for the high-income group. Because of the recent price hike, the price of food has increased sharply. So the low-income and middle-class people have been affected seriously. They have to spend their earnings to buy food. The recent price hike has created food insecurity for them. It’s a double blow for them. To survive they have changed their food habit. They are eating a minimum amount of food for their survival. Most of the people have cut short their spending on other things.

How to control price hikes

The government can control price hikes if it is artificial. But if the price hike occurs due to natural calamities the government can hardly do anything to control the price. We know that in a free market system, the price of products is determined by the demand and supply policy. Production cost is also another reason for pricing. The producers can’t sell their products below the production cost. To control the price of agricultural products the government can give subsidies on different ingredients related to agriculture. The ingredients are seeds, fertilizer, agricultural tools, electricity bills, etc.

To check the price hike due to artificial reasons the government can take some pragmatic steps. There are some invisible forces responsible for the price hike. Their business thrives dishonestly and illegally. The government should find them out and bring them to book for the greater interest of the common people.

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