Due to high inflation, shortage of food imports compared to the requirement, and natural calamities, 23.6 Million people in the country suffer from acute food crisis. This information has emerged in the United Nations Food and Agriculture Organization (FAO) report.
Economists say that from October to December last year, there was stagnation in the overall economy. Development activities or growth in the economy are minimal. Investment is not at that rate, nor is there employment. Due to high inflation for more than two years, income has already shrunk, and people's purchasing power has also decreased. This has affected food security.
The report said that the food security situation deteriorated between October and December 2024. Analyzing the latest Integrated Food Security Phase Classification (IPC), the organization says that about 23.6 million people faced acute food insecurity and higher levels from October to December.
The IPC's previous report predicted that 16.5 million people would be severely food insecure from April to October, meaning that more people are facing acute food insecurity than the IPC had predicted.
The report attributes the deterioration in food security to the negative impact of floods and Cyclone Remal, which affected an estimated 19 million people and caused severe damage to crops, livestock, food stocks, and agricultural infrastructure.
Explaining what could be the reason for the increase in the number of food insecure people, Dr. Mustafa K. Mujeri, executive director of the private research organization Institute for Inclusive Finance and Development and former chief economist of Bangladesh Bank, told Amar Desh that the major reason for this crisis is the stagnation of the overall economy at this time. Development activities or growth in the economy were very little, investment was not at that rate, and there was no employment. If production does not increase, there will be no employment. Unemployment increased during this time. Overall, the financial stability required to buy food, which was in demand from the people, has decreased a lot.
He further said that this has had an impact on the low-income and poor population. High inflation has been prevailing in the country's economy for more than two years. Food inflation is still close to 13 percent. Income has already been squeezed, and their purchasing power has also decreased due to high inflation.
Mustafa K. Mujeri opined that since this inflation has been going on for a long time, people are having to take loans, and they don't even have a lot of bank balances. As a result, the country's food security has become a matter of concern.
The FAO report also mentioned that purchasing power may further decrease due to high inflation in the country. It said that although the country's food grain production has been as expected in the last two years, the crisis is not going away for the general consumer. Despite higher-than-expected grain production in 2023 and 2024, concerns remain about food availability due to persistently high food price inflation. As a result, the purchasing power of vulnerable households has decreased.
Food inflation has remained high since August 2022 and was reported at 12.7 percent in October 2024. The high inflation was due to high production and transportation costs, a decline in food grain imports (especially the staple wheat), and a significant depreciation of the taka. The depreciation of the taka has made imports more expensive.
Food imports are lower than demand
In Bangladesh, wheat is the major grain import. It meets 80 percent of the country's consumption needs. However, rice and maize are also imported in small quantities along with wheat. The total foodgrain import requirement in the current fiscal year 2024-25 is forecast to be less than 8.3 million tonnes on average.
However, according to the Global Information and Early Warning System for Food and Agriculture (GIEWS), rice imports to Bangladesh are expected to be 450,000 tonnes in 2025. Wheat imports are expected to average more than 6.1 million tonnes. Maize imports are forecast to average more than 2.1 million tonnes due to stable feed demand in the livestock and fisheries industries.
Foodgrain imports were well below average in the previous two fiscal years (2022-23 and 2023-24). This was mainly due to the decline in foreign exchange reserves from May 2022 to November 2024. In addition, the country's import capacity was constrained due to the significant depreciation of the taka.
The report also warned that Bangladesh may face challenges in fully meeting its import requirements in the current fiscal year as the central bank's reserves and national currency are still quite weak.
What is the current state of food security in the country?
According to the FAO report, 23.6 million people are suffering from acute food insecurity. This marks a deterioration in food security due to factors such as high inflation, natural disasters, and reduced purchasing power.
What are the major reasons for the food crisis?
How has inflation affected food security?
What role have natural calamities played in the food crisis?
What is the impact of the depreciation of the taka on food security?
How have food imports contributed to the crisis?
What predictions does the FAO make for food imports in 2025?
Why has investment and employment stagnated?
What measures could improve the food security situation?
Why is food inflation still a concern despite good grain production?
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