Course title: Industrial Law and Relations

COURSE ID: HRM 380

Section:01

Submitted to: Bushra Sanjana

Submission date: 25th of November 2022

Group Member Details

Name: ID:

Fatema Tuz Zohura 1921844

Ibnul Alam Ratul 1921505

Sadia Afrin Antu 1930564

Nazmul Alom Talukder 1930227

Rimpy Kundu 1911147

 LETTER OF TRANSMITTAL

To,

Ms. Bushra Sanjana

Lecturer of Human Resource Management,

School of Business,

Independent University, Bangladesh

Subject: Letter of transmittal

Dear Ma’am,

With due respect, we would like to inform you that, this is a great chance for us to present our
report on “Human Resource Management, hoarding in edible oil industry in Bangladesh. We
feel grateful as we got the opportunity to do our report on it. We tried to put our best effort
for the preparation of this report. Yet if any limitations or flaws arise, it will be our pleasure
to answer any clarification and recommendation regarding this report. we like to take every
opportunity to express our gratitude of indebtedness to you. We would be thankful once again
if you please give your judicious advice on effort. Therefore, pray and hope that you would
kindly accept our report and oblige thereby.

Yours sincerely,

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 ACKNOWLEDGEMENT

We needed the assistance and guidance of our esteemed faculty members in preparing our
report, and we owe her our deepest thanks. We are having a great time working on this
project. We are grateful to MS, Bushra Sanjana Lecturer, Department of Human Resource
Management, Independent University Bangladesh, for providing us with a firm guideline for
the assignment throughout multiple talks. We'd also want to express our deepest gratitude to
everyone who helped us write this assignment, both directly and indirectly. Many individuals,
particularly our team members, have offered insightful comments and recommendations on
this proposal, inspiring us to significantly enhance our report.

Thank You.

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 Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................. 9

STOCKPILING IN EDIBLE OIL......................................................................................................................... 10

ACTION FOR STOCKPILING:......................................................................................................................... 10

IMPACT ON GENERAL PEOPLE..................................................................................................................... 10

IMPACT ON BANGLADESH........................................................................................................................... 10

FINDINGS AND RESEARCH OUTCOME.......................................................................................................... 11

CONCLUSION.............................................................................................................................................. 12

REFERENCE................................................................................................................................................. 12

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 Executive Summary
Stockpiling is a result of market system faults that are the fault of all parties involved. The
consumers, however, who bear the final cost, are the real victims of such malpractices.
Because of this approach, they lose a significant amount of money every year to a group of
dishonest businesses. The focus of our research has been on the character and breadth of this
immoral conduct. Manufacturers, distributors, retailers, regulatory bodies, and consumers are
just a few of the numerous players that make up a market. All these pertinent organizations
must collaborate to prevent hoarding in Bangladesh. This article's focused discussion is
meant to provide the groundwork for more investigations into the grim realities in
Bangladesh.

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 Stockpiling in Edible Oil
We are aware that the major issue in Bangladesh is hoarding. Hoarding or stockpiling occurs
when a person hoards something and refuses to sell it to spur a crisis and then sell it for a
high price. Currently, Bangladesh's largest issue is oil hoarding. The cost of gasoline, cooking
oil, and fuel is rising daily. The transportation and energy industries in Bangladesh rely
heavily on imported oil, thus the impact of changes in the price of oil is crucial and must be
regularly watched. The exchange rate, one of the most significant macroeconomic indicators,
has the capacity to boost the economy through many avenues. The macroeconomic
characteristics of a nation may be influenced by the exchange rate as well as other factors
including the interest rate, current account deficit, public debt, and trade circumstances. The
exchange rate may be important in nations that heavily rely on foreign trade. In order to get
an additional 0.4 million tons of soybean oil domestically, it crushed seeds and imported 2.2
million tons of palm, soybean, and mustard oil. Furthermore, the nation produced more than
0.1 million tons of mustard oil all by itself. The CDA Karnaphuli Market in Chaumuhani in
Chattogram city's warehouse had 1050 liters of soybean oil that had been stashed there,
according to the National Consumer Rights Protection Directorate. The proprietor of Khaja
Store was fined Tk40,000 for faking a market crisis.

Action for Stockpiling:

Dealers have demanded crazy things since the Directorate of National Consumer Rights
Protection intervened to start a crackdown on hoarders. At a meeting of the Federation of
Bangladesh Chambers of Commerce and Industry on May 11, representatives of the oil
industry asked that the government stop the searches. Such a demand is not only outrageous,
but also unreasonable and audacious. Therefore, in order to ameliorate the situation, the
government should There are several options accessible. The relevant authorities must
intensify their hunt for hoarders and keep up the endeavor until the last stash of illegally
stored oil is found. The government should take severe punishment against anyone who
participated in manipulating oil prices at each of the following.

Impact on General People

The oil crisis is causing a number of issues for the populace. Oil is not accessible to the poor.
The cost of many items has increased as a result of the rise in oil prices, but average people's
income has not.

Impact on Bangladesh
All social groups are experiencing financial hardship as a result of the price increase, with the
poorer and middle classes bearing the most of the cost. Hoarding is the practice of buying and
storing a big amount of a good in order to profit from future price increases. An individual
who hoards things does so in anticipation of rising costs. Recent increases in the price of
edible oil in Bangladesh have alarmed both consumers and the government. Concerned

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consumers have resorted to panic purchasing as a result of the rising price of edible oil on the
international market, the conflict in the Ukraine, and rumors that prices may rise during
Ramadan. In order to stop price increases, the government has implemented a number of
administrative and economic measures, such as increasing supply, lowering import taxes and
value-added taxes (VAT), and improving market oversight, which includes looking for edible
oil stocks and enforcing anti-hoarding laws. Before the days leading up to Eid-ul-Fitr, when
demand was at its highest, soybean oil had almost completely disappeared from the markets,
driving up its price. With each day that passed after Eid, the public was inundated with
disturbing news regarding cooking oil hoarding. Additionally, the rise in gas prices has a
detrimental direct effect on power, transportation, and basic necessities. 73% of all fuel
consumed in Bangladesh is diesel, making it the most popular fuel. Over 90% of the
transportation industry uses diesel.

Findings and Research Outcome

Since over 90% of the edible oil in Bangladesh comes from foreign markets, any changes
there or disruptions in the supply chain are likely to hurt the home market. Administrative
measures like stock inspections, penalties, and arresting traders have a tremendous appeal to
the public and can have an immediate impact. Additionally, administrative procedures are not
free. Large-scale market inefficiencies, an incentive for corruption, and a disincentive for
supply chain investment are all caused by the state's high enforcement costs and the private
sector's high compliance costs.

 The item is a need that people must eat every day. Consumable products including
milk, onions, ginger, and oil are frequently the targets of attacks in Bangladesh.
 A certain product is picked that is either made abroad or not in the country.

 Government oversight or market mechanisms are insufficient, and syndicate members

have political power. Despite the higher prices, the general public must use these
products. The judicial system is not taking the necessary steps.

It is hereby enacted as follows: -

1. Power to fix prices and require price marking: The Government may, from time to
time, by notification, fix the highest prices at which a retailer, wholesaler, or any other
person may sell an essential article. For this purpose, the Government may fix
different prices for different areas of the nation.
2. Prohibition on paying more than the maximum price for purchases, sales, etc.
Regardless of any contract provisions, no merchant or wholesaler shall sell, buy,
deliver, or accept delivery of any necessary goods for a price that exceeds the Under
subsection (1) of Section 3 of the Price Control and Anti-Hoarding Act of 1953, the
maximum price is set.

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 3. Power to require a license for trading: The government has the authority to direct, by
notification, that no trader or class of trader shall deal in any essential article except
pursuant to and in accordance with the terms of a license issued in this regard by the
government, upon payment of such fees and in such a manner as in the appropriate
way and format. Application for such a license must be accompanied by any
applicable fees.
4. The Government may, by general or special order in writing, require any trader
holding stock of an essential article to sell the entire item or a specified portion of it at
prices not exceeding the maximum fixed to such person or class of persons. the order
may specify, and the dealer in question must abide by, those conditions or under those
licenses.
5. Sales withholding is prohibited. No trader may withhold from the sale of, or refuse to
sell to, any individual, any necessary product in proportions not in conflict with the
usual procedures of his business, unless previously permitted to do so by the
Government.
6. Power to require maintenance of accounts, etc., and registration of go-downs: Any
officer, authorized on this behalf by the Government, may, by general or special order
in writing, -
 Require a trader to maintain accounts relating to any transaction in such
manner and form as may be prescribed.
 Require a trader to submit such accounts, returns, reports, or statements
relating to any transactions, in such manner and form and to such officer as
may be prescribed.
 Require a trader to keep hung up in his business center a notice board quoting
therein the daily stock of essential articles held by him in his stock.

Conclusion
historical experiences of Bangladesh and other developing countries suggest that
administrative measures against anti-hoarding do not always bring the desired outcomes and
they are not the first best solutions. In the long term, these are often counter-productive,
creating a disincentive for true economic agents who serve the market to ensure a smooth
supply of goods. Priority should, therefore, be given to economic measures as the government
has already reduced import duties and VAT. This will provide a clear signal to the hoarders
that supply will shortly increase, and prices will fall. Restrictions on storing food items and
administrative measures to control prices should be exercised with caution, sparingly, and
only for a limited period so that private enterprises are not discouraged from investing in the
edible oil sector. However, it is necessary to keep eye on large suppliers to regulate price-
manipulating behavior. To reduce 13 reliance on the external market, the government may
also take steps to expand domestic edible oil production in the long run.

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 Reference
 http://bdlaws.minlaw.gov.bd/
 http://bdlaws.minlaw.gov.bd/act-details-259.html
 https://www.thefinancialexpress.com.bd/views/opinions/hoarding-is-it-
always-bad-golam-rasul-1648135955
 https://www.tbsnews.net/economy/fuel-price-hike-exporters-cannot-pass-ball-
328084
 https://www.tbsnews.net/bangladesh/rice-hoarding-square-group-sued-akij-
groups-sacks-confiscated-431382#l3vwogvhsg8xa67or8k

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