Food prices: Why should Bangladesh be out of the globe?
In a surprising turn of events, global food prices witnessed a significant downturn in 2023, falling by an average of 13.7 percent compared to the previous year, according to data released by the Food and Agriculture Organisation (FAO) of the United Nations.
This is in a stark contrast with Bangladesh, where food prices surged by 10.06 percent during the same period, as reported by the Bangladesh Bureau of Statistics (BBS).
The latest FAO data reveals a point-to-point decrease of 10.1 percent in global food prices in December 2023 compared to December 2022.
Notably, the international sugar price index was the sole indicator that saw a rise over the year.
Delving into the local scenario, Bangladesh experienced fluctuations in food inflation throughout 2023, ranging from a minimum of 7.76 percent in January to a peak of 12.54 percent in August.
The repercussions of this disconnect are particularly felt by low-income and lower-middle-class families in Bangladesh, rendering them more vulnerable to the economic challenges posed by inflation.
What is going on in the country in the name of business is not really a business but robbery as traders engaged in unethical practices, keeping consumers captive and contributing to an environment of price hikes.
SM Naser Hossain, vice president of the Consumer Association of Bangladesh (CAB) argued that the country lacks good governance to contain such unethical price hikes, emphasizing the urgent need for systemic changes to protect consumers from the adverse effects of market fluctuations.
Since the start of Ukraine and Russia war after covid-19 was over, the people in the government never got tired of telling us that the price hike of commodities was due to the war that forced US and allies to impose economic sanctions on Russia.
But it is more than a year now that global food prices stabilized but in Bangladesh, prices continued to soar.
Economists as well as market experts are of the opinion that in the coming days, food prices will see more volatility in the coming days.
As Bangladesh grapples with the challenges of aligning local and global food prices, it becomes imperative for stakeholders, including the government, traders, and consumer advocates, to work collaboratively towards ensuring fair pricing mechanisms and protecting the interests of the broader population.
The disconnect observed between trends in the global food prices and Bangladesh raises questions about the efficacy of Bangladesh’s current market practices and the need for comprehensive reforms in the nation’s economic landscape.
