Rising production costs, inefficient market structures, and limited market access for producers are major contributors to the ongoing food inflation in Bangladesh, according to a recent survey by the Dhaka Chamber of Commerce and Industry (DCCI). The study, presented at a roundtable discussion, analyzed price fluctuations of 21 essential commodities across the country and suggested policy measures to stabilize the volatile market.
The survey, which gathered responses from 600 participants across 49 districts, examined 12 locally produced items, 5 imported products, and 4 that are both imported and locally produced. AKM Asaduzzaman Patwary, Executive Secretary of DCCI’s Research and Development department, presented the findings. The results highlighted key factors behind the price hikes, including high transportation costs, supply chain inefficiencies, market domination by wholesalers, and artificial crises.
DCCI President Ashraf Ahmed emphasized that despite the significant price gap between producers and consumers, farmers and local producers are not receiving fair prices. He pointed to high input costs, inadequate storage, and transportation inefficiencies as major challenges. "If we can reduce costs in storage, transportation, and processing, prices will decrease," he said. Ahmed also recommended data-driven policies, improved coordination between government agencies, and the creation of a "tariff calendar" to help importers plan during the off-season.
Bangladesh Bank Executive Director (Research) Dr. Sayera Younus underscored that controlling inflation is currently a top priority for the central bank. She noted that despite recent increases in the policy rate, inflation remains high due to non-economic factors such as international market fluctuations and rising import costs. She called for stronger monitoring to manage price volatility.
Joint Secretary of the Ministry of Commerce, Saifuddin Ahmed, highlighted the importance of market data analysis to develop appropriate policy guidelines. He also called for an annual "product calendar" to help the government manage taxes on imports and track production and demand more accurately.
Other speakers, including Bangladesh Trade and Tariff Commission Joint Chief Md. Moshiul Alam and Bangladesh Bureau of Statistics Deputy Director Swajan Hayder, echoed the need for better coordination among government agencies to manage food inflation effectively. They also stressed the importance of planning imports well in advance to prevent shortages and price spikes.
The roundtable concluded with a call for public-private partnerships (PPP) to conduct comprehensive research on market dynamics and develop long-term strategies to stabilize prices and ensure fair returns for producers.
DCCI Vice President Md. Junaed Ibna Ali and members of the Board of Directors were also in attendance at the event.
