State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
4. Conclusion
The high food inflation in the domestic market during the pandemic period,
particularly during the later phase of the pandemic (in 2021), is likely to be
influenced by structural weaknesses in the rice value chain.
The local market is influenced by the global market's price trend trend to a
certain degree primarily for the imported commodities.
However, this cannot fully explain the internal market dynamics and its
implications on the prices of essential commodities.
☐ It is suggested that the government should take necessary steps as regards the
following issues:
➤ A proper re-estimation of rice demand is urgently required given the rising demand
for rice.
■ The existing base of rice demand could not provide proper market signal and has given rise
to a number of challenges in ensuring rice price stability in the market.
➤ The role of the dominant market players in rice and non-rice imported products,
particularly rice millers and importers, needs to be revisited.
■ It appears that these market players have been influencing the market and taking undue
advantage of the market through higher margin.
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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