The food price inflation is at the highest level in South Asian countries, however, Bangladesh has no risk of food shortage as of July, the World Bank said recently.
According to the World Bank, food price inflation in Bangladesh is only 8.3 per cent compared to other countries like Sri Lanka which is 80 per cent and Pakistan 26 per cent.
As per the report, the average price inflation in South Asia will be at 15.5 per cent in the food and non-food sectors.
Appreciating the various steps taken by the Bangladesh government in food security, the World Bank said, the Bangladesh government has reduced rice import duties, increased budget allocations for agriculture and fertilizer subsidies, and given cash incentives to exporters. Also adjusted its agricultural policy to deal with food security.
“Bangladesh and Nepal did not see a major food shortage until July this year. Wheat and rice production in Pakistan declined slightly. The World Bank said that Bhutan is stocking essential food items directly and through concessional working capitals to wholesalers and retailers while the government of Pakistan has been providing targeted subsidies and has increased coverage of social protection programmes to protect the poorest households from high food prices,” it said.
Agricultural production in Sri Lanka has fallen by 40 to 50 per cent due to fertilizer shortages and a lack of foreign exchange to import food. Fertilizer and fuel shortages will further limit food supplies,” World Bank added.