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 failure 3 Food adulteration in Bangladesh 3 Mouthwatering looks: 4 Endurance: 4 Examples of food adulteration 5 The consequences: 6 The awareness issue: 6 Penalties 7 The Solution 8 Conclusion 8

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,