Global research body urges govt to cut tariffs, VAT on food imports to strengthen food security
It also emphasises needs for programmes like OMS to continue
Highlights
- IFPRI urges not to impose additional tariffs on staples
- Value chain inefficiencies prime cause of unusual price hike, research finds
- Emphasises needs for programmes like OMS to continue
To combat high inflation, the government can go for short-term measures by reducing tariffs and Value Added Tax (VAT) on food imports, which would also help strengthen food security, said Akhter Ahmed, country representative for Bangladesh at the International Food Policy Research Institute (IFPRI).
He was speaking at a press conference organised by IFPRI in the capital on Thursday (20 February). Daniel Gilligan, director of IFPRI's Poverty, Gender and Inclusion Unit, and Moogdho Mahzab, associate research fellow, were also present at the conference.
Keep updated, follow The Business Standard's Google news channel
Akhter Ahmed said Bangladesh relies heavily on importing essential food items such as soybeans, sugar and lentils, which are staples in people's daily diets. Therefore, the government should avoid imposing additional tariffs and tax burdens on these import-dependent foods, especially considering the needs of low-income individuals.
He went on to say that when onion prices skyrocketed, IFPRI's research to identify the cause revealed that inefficiencies in the value chain were the primary cause of the unusual price hike.
Based on the findings, his organisation provided recommendations to the government on how to improve the value chain from farmers to retailers to curb price fluctuations, he added.
"This is why more research is essential. With accurate information, the government can take timely and effective action to ensure food security," he added.
He also praised the government's Open Market Sale (OMS) programme, which provides food at affordable prices to low-income individuals and plays a crucial role in ensuring food security. He emphasised the need for its continuation to support vulnerable communities.
Daniel Gilligan said IFPRI generates rigorous evidence that informs policies and programmes worldwide.
Poverty, gender inequality and exclusion of marginalised groups in low and middle-income countries are among the most difficult challenges eroding people's quality of life and limiting economic potentials, he added.
He further said IFPRI collaborates with the government and partners in Bangladesh and beyond to conduct multidisciplinary research that provides evidence-based guidance to inform policies.
"We collected evidence-based data by directly engaging with women in households to gain a deeper understanding of the challenges they face in accessing food and implementing effective nutrition practices," he added.
As a global leader in food security and agricultural policy research, IFPRI reaffirmed its commitment to supporting evidence-based policymaking in Bangladesh.
