A SLIGHT decrease in prices, largely because of an improved supply and a halt in extortion on highways and at markets, comes as a relief amidst the food inflation that has pushed the poor and low-income people into a tight spot. Prices of vegetables decreased by Tk 10–20 a kilogram in the capital on August 9 while prices of chicken and eggs also decreased slightly. Traders also expected prices to decrease as students continued inspecting markets and market manipulators were not active and extortion remained suspended. There are, however, reports that a new group has begun pressuring traders at several kitchen markets for extortion. In such a situation, the decrease is hardly likely to be sustainable unless the government takes steps against food inflation. Food inflation and food insecurity are two major concerns that people are now faced with. The recent food security update of the World Bank put Bangladesh in the red zone for the past year. The update, covering a year from May 2023, says that the persistent high food inflation has pushed the large majority of low- and fixed-income people into food insecurity.
Bangladesh is placed in the red zone with 18 other countries, where the food inflation ranged between 5 per cent and 30 per cent. In Bangladesh, food inflation, keeping to the conservative Bureau of Statistics figure, remained more than 10 per cent for the past year. Independent studies, however, estimate the food inflation to be double the BBS figure. The Bangladesh Institute of Development Studies estimated food inflation in June at 15 per cent against the official figure of 10.42 per cent. A South Asian Network on Economic Modelling survey report in March said that moderate and severe food insecurity had increased sharply over two years. The report, which focused on the impact of inflationary pressure on households in April–November 2023, said that high food inflation had led 70 per cent of households to change their food habits involuntarily. A high inflation has continued to erode people’s purchasing power since mid-2021 and the number of the new poor has continued to rise. The food insecurity situation is believed to be caused primarily by the erratic nature of food prices on the domestic market, which the past government lamentably failed to address. The government took a number of measures, but the market remained in the hands of manipulators.
The interim government needs to realise that the student movement was supported and joined in by people who were constrained by inflation, corruption and social injustice. The authorities must, therefore, prioritise the issue, ensure an adequate market supply, break syndicates and end extortion on highways and markets for good. The government must also enhance social safety programmes to cover all vulnerable people.
