Food price inflation may slow down poverty reduction in Bangladesh

Bangladesh is experiencing a significant increase in the prices of essential food commodities and fuels due to the economic impact of the COVID-19 pandemic. The Department of Agricultural Marketing has reported price surges for various vegetables, farm-raised hen, eggs, and other staple foods, some of which have seen increases as high as 106%. Fuel prices, including diesel and kerosene, have also risen by 23%, affecting transportation costs and the production value chains of commodities. This one-two punch of food and fuel price inflation is disproportionately impacting low-income households, who spend a significant portion of their income on food and are already struggling with reduced daily per capita incomes and increased poverty rates post-COVID-19. The government is urged to adopt measures such as expanding open market sales, subsidizing agricultural and poultry farming inputs, and increasing public procurement of rice to mitigate the effects of these rising prices and support the economic recovery, especially among the poverty-stricken population.