Market Failure: Food Adulteration in Bangladesh

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Market Failure
* Adulteration in Food Industry

Submitted to:

Mr. Sheikh Morshed Jahan
Associate Professor
Course Instructor - Bangladesh Studies

Submitted by:

Samia Khan (RQ 16)
Adel Mostaque Ahmed (ZR 22)
Ahnaf Zabee (ZR 35)
Rituraj Baidya (ZR 56)

Institute of Business Administration
University of Dhaka
April 9, 2012
Table of Contents

Market failure3
Food adulteration in Bangladesh3
Mouthwatering looks:4
Endurance:4
Examples of food adulteration5
The consequences:6
The awareness issue:6
Penalties7
The Solution8
Conclusion8

Market failure
Market failure is a concept within economic theory describing when the allocation of goods and services by a free market is not efficient. That is, there exists another conceivable outcome where a market participant may be made better off without making someone else worse-off. Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point-of-view. Food adulteration in Bangladesh

Food adulteration is the process of adding chemical substances with foods, which should not be contained within food and beverages. Chemical substances or simply adulterants may be added to substances to reduce manufacturing costs, or for some deceptive or malicious purpose. When profit in business is more important than morality, then it is possible to add the poisoning contents to the foods and beverages. A limited number of people may die without foods but a large population has been suffering from complicated diseases related to food adulteration, which may be even lead to death in future. Adulterated food consuming is the waiting for death, which is a worse punishment than death. Food adulteration has become a major problem in Bangladesh. Vegetables, fish, milk, fruit, and sweetmeats nothing is safe, and is being sold in the market profusely. However, the adulteration that affects the consumers directly comes from restaurants. The restaurants are using toxic chemicals like formalin and textile dye stuffs in preserving foods, which play havoc in health system. Most of the country’s population, especially women and children would be the worst victim if the authorities fail to stop food adulteration. The number of people afflicted by cancer and other chronic diseases due to taking of adulterated foods has of late gone up to such an alarming level that some people have even stopped buying many essential nutritious foods and vegetables other than some basic food grains, for mere survival, that they assume are not adulterated. Mouthwatering looks:

There is a special demand for fresh good-looking foods among customers and they are willing to pay extra just for the look. However, we need to be cautious because, Consumer Association of Bangladesh (CAB) confirmed that wholesalers use several mechanisms to make foods attractive. In their study, it came out that in most cases the spices are mixed with brick dust, cumin is mixed with sawdust, and sugar syrup is added with honey to enhance the sweetness. Dishonest traders use a host of ingredients such as animal fat, palm oil, potato mash and vegetable oil to produce fake butter oil. In another study, the Food and Nutrition Institution, University of Dhaka6 have found alarming level of deadly bacteria like E-coli, Salmonella and Shigella bacteria in most of the restaurant food and street food in the city. Many street food vendors and restaurants recycle burnt cooking oil for frying food items. Once the oil is used for cooking, it becomes oxidized and its further use generates peroxide, which is very harmful for the human body. Endurance:

It is a challenge to keep fresh produces, meats and fish for a longer time in Bangladesh. Most of the traders do not have freezing vans or climate control storage facility to ensure the quality of the food. However, many traders came up with unusual ideas...
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