Food supply shows no improvement despite easing inflation: CPD
Inflation stood at 8.49% in December.
There has been no improvement in Bangladesh's food supply system in the first half of FY2025–26, the Centre for Policy Dialogue (CPD) said today (10 January), warning that structural weaknesses continue to keep prices elevated despite easing global trends.
The assessment was presented by Executive Director Fahmida Khatun during CPD's independent review of the state of the economy at a press conference in Dhaka.
CPD said weaknesses in storage, distribution and market competition remain unresolved, contributing to persistently high food prices.
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Inflation stood at 8.49% in December. While food inflation has declined slightly, non-food inflation remains high, putting pressure on households.
The organisation questioned why domestic food prices have not fallen in line with global trends.
It noted that global prices of key commodities such as sugar and edible oil fell by around 40% in November, but Bangladesh has not seen a similar reduction.
CPD pointed out discrepancies in the domestic market, saying the country produces more rice than its estimated demand.
Annual demand stands at 41 million tonnes while production is 44 million tonnes. However, prices remain high, partly due to weaknesses in supply management.
It said profit margins are highest in perishable items such as green chillies, brinjal, beef, and fish, where middlemen have greater control over the supply chain.
In contrast, price variation in rice is lower.
The organisation also noted a decline in agricultural labourers' wages, even as food prices continue to rise.
On policy recommendations, CPD stressed that inflation cannot be reduced merely through higher market interest rates.
It said increasing supply, preventing hoarding and enhancing market competition are necessary to stabilise prices.
The organisation called for an integrated food policy framework to ensure effective imports, maintain adequate food stock, and streamline supply and transport systems.
It also stressed the need to ensure the timely supply of quality seeds and fertilisers to boost Aush and Aman production.
