Food price inflation in South Asian countries has reached its highest level in many years. However, there was no major food shortage in Bangladesh until July, according to the World Bank.
The World Bank’s ‘South Asia Food Security Update’ published on Thursday also said that the Bangladesh government has reduced import duties on rice. Budget allocations to agriculture and increased subsidy on fertilizers. Apart from this, cash incentives have been given to the exporters.
According to the World Bank, the production of wheat and rice in Pakistan has decreased slightly. This is mainly due to lack of fertilizer and heat wave. Bhutan and Sri Lanka have experienced significant food shortages.
According to the report, South Asian countries have experienced the highest level of inflation. While other countries in the region are facing inflation, Bangladesh is in a favorable position. However, the average price inflation in South Asia for food and non-food sectors may be 15 and a half percent. The main reason for this is believed by the lenders to be food shortage.
The international organization has appreciated the various steps taken by the Bangladesh government in food security. According to the World Bank, food price inflation has reached 80 percent in Sri Lanka, 26 percent in Pakistan and 8.3 percent in Bangladesh.
According to the agency, agricultural production in Sri Lanka has decreased by 40 to 50 percent. This situation has happened due to the shortage of fertilizers and the impact of foreign exchange on food imports. The World Bank fears that fertilizer and fuel shortages will further limit food supplies. However, India is somewhat relieved, the World Bank said.
