United News of Bangladesh

Rice alone contributed about 47 percent of total food inflation in October while vegetables posted a strong negative impact because of seasonal abundance, according to the latest Economic Update and Outlook for November 2025 prepared by the General Economics Division (GED). Protein items including beef, chicken and fish saw steady inflation during the month, driven by feed prices and transport costs, the report said. Overall inflation dropped to 8.17 percent in October 2025, from 10.87 percent a year earlier, driven almost entirely by a sharp fall in food inflation. Food inflation plunged from 12.66 percent in October 2024 to 7.08 percent in October 2025 as rice supply improved due to the Aman harvest, imports and public procurement. Read more: High price of rice in Bangladesh bucks the trend of easing inflation However, non-food inflation inched up to 9.13 percent, reflecting persistent pressure in housing, transport and healthcare—an indication that inflation remains far from under control. Election-related spending and possible disruptions during the transition are expected to add further pressure on inflation and the foreign exchange market, complicating stabilisation efforts, said the report. The report warns that large-scale dollar purchases by the central bank unless sterilized could fuel inflation and distort market-based exchange rate mechanisms. Bangladesh’s economic recovery depend heavily on political stability following the February national election and the next government’s willingness to carry out meaningful reforms, said the GED reprot. The report offers a cautiously optimistic view but warns that deep structural weaknesses along with the political transition period could constrain economic momentum. According to the analysis, the economy could regain pace if the election produces a clear political direction and the next government decisively undertakes long-delayed reforms, particularly in improving the business climate, stabilising the banking system, and ensuring fiscal and energy security. Without such reforms, the recovery may be short-lived, it said. Read more: Bangladesh economy in ‘waiting vortex’; experts urge credible elections The Asian Development Bank (ADB) has forecast around 5 percent GDP growth for FY26 following a sluggish period. Remittances and garment exports continue to provide much-needed resilience but the GED notes that the broader economic environment remains fragile as both investors and entrepreneurs appear to be “waiting” for political stability before committing to new ventures.= While bank deposits grew at nearly double-digit rates through August and September, private-sector credit growth fell to just 6.29 percent—the lowest in at least four years and well below the Bangladesh Bank’s FY26 target of 7.2 percent. High lending rates, cautious bank behaviour and political uncertainty have depressed investment appetite. Meanwhile, government borrowing from commercial banks surged 24.45 percent in September, raising concerns about crowding out private borrowers. Interest rate spreads also exposed deep structural distortions. Foreign commercial banks maintained spreads close to 9 percent—far higher than state-owned and private banks—highlighting issues such as high operational costs, non-performing loans and market concentration. Rising rice prices push food inflation higher in Bangladesh: Report Revenue collection in October 2025 fell short of the target by Tk 8,324 crore, achieving only 77.37 percent of the month’s goal. All major revenue streams—import duties, domestic VAT, and income tax—underperformed. Although collection was slightly higher than in October 2024, the growth of just 2.2 percent was described as “pessimistic” given inflationary pressures and increased public spending needs. ADP utilisation continues to lag despite marginal improvements. Up to October, utilisation stood at 8.33 percent, only a slight increase from 7.90 percent last year. Lower overall allocations and reduced spending under own-financing components indicate financial strain and weak project execution. The report notes that while utilisation rates improved marginally in some categories, the decline in total expenditure—from Tk 8,762 crore last year to Tk 7,720 crore this year—reflects ongoing bottlenecks in planning, fund release and implementation. Foreign exchange reserves improved significantly, rising from USD 24.35 billion in November 2024 to USD 32.34 billion in October 2025. BPM6 reserves also rose sharply, supported by stronger remittances and prudent reserve management. Bangladesh’s June inflation remains high with food inflation at 10.42% Remittances surged in the first four months of FY26, with each month outperforming the previous year and September recording the highest inflows. However, export earnings remained volatile. Exports peaked in July at USD 4.77 billion but suffered sharp declines in April and June. RMG exports mirrored these fluctuations, while non-RMG exports also experienced mid-year downturns. Imports especially capital machinery saw steep contractions year-on-year, signalling depressed investment demand. A slight month-on-month recovery in August and September suggests only tentative stabilisation. The real effective exchange rate (REER) appreciated notably, indicating eroding external competitiveness. Read more: Inflation in Bangladesh edges up to 8.36% in September

Rice procurement activities across the country are facing disruptions following the imposition of a 0.5% source tax on domestic rice procurement, according to an official document. The document was placed in a recent meeting of Food Planning and Monitoring Committee (FPMC) held at Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair. As per the meeting document, the target for Boro Crop collection as paddy was 3.50 lakh metric tonnes while the collection as of July 15 was 3,76,942 tonnes, which means 108% achievement. Parboiled Rice collection target was 14.00 lakh metric tonnes where the achievement of the stipulated time was 9,60,802 tonnes, which means 68.3% of the target. The target for Atap Rice Was 35,000 metric tonnes while collection was 27,908 tonnes, which means 79.4% of the target. The document mentioned that some 26,942 MT of paddy procurement has been achieved ahead of schedule; which is a record so far. The Food Department has sent a proposal for the ex-post facto approval of procurement of 26,942 MT of paddy procurement in the current Boro season. In the case of rice procurement, the target of 67.6% parboiled rice and 78.2% parboiled rice has been achieved till July 15, 2025. Rice shortage unlikely this year due to steady supply, strong stocks “Rice procurement activities are being disrupted due to imposition of 0.5% source tax on domestic procurement of rice,” the document stated. Considering the potential demand for distribution of 31.23 lakh MT of rice in the food budget of the fiscal year 2025-26, it said that some more quantity of parboiled and parboiled rice can be procured from domestic sources in the ongoing Boro procurement 2025 season. “This will help in ensuring fair price of paddy and rice in the market. Besides, the quantity of rice imports will be reduced and foreign exchange will be saved,” it added. The Food Department has proposed to procure 50,000 MT of Boro parboiled rice and 15,000 MT of Boro parboiled rice in the current season, as per the document, In the current Boro procurement season 2025, permission may be given to procure 26,942 MT of paddy in addition to the target, the official document said adding that the procurement of 50,000 MT of Boro parboiled rice and 15,000 MT of parboiled rice in the current season might be considered. A top official of the food ministry mentioned that the target for rice collection is 14 lakh metric tonnes whereas some 9.50 lakh has been collected. High price of rice in Bangladesh bucks the trend of easing inflation “Hopefully we will be able to reach the target. We will stop the process to procure the rice in the middle of August,” he said. The Food Ministry official said source tax  is creating trouble for the field officials to procure rice. He mentioned that usually the farmers who used to sell rice and paddy to the government system do not have any income tax file or they do not know anything about the income tax, tax at source and others. “When they see their total amount reduced in the name of source tax, they become frustrated and express unwillingness to sell their rice,” the official said. When asked he said that till now there is no move from the ministry to the Finance Ministry or the National Board of Revenue (NBR) to withdraw this source tax.  

A vessel carrying 20,000 metric tonnes of rice from Vietnam arrived at Chattogram Port. The rice was brought under a government-to-government (G2G) agreement signed on February 3, 2025. Reforms agreed through dialogue must be implemented by current govt: Nur Bangladesh had contracted to import a total of 100,000 metric tonnes of non-parboiled rice from Vietnam. All shipments under the deal have now arrived in the country, said a press release. Unloading of the rice have started after sample testing of the rice.    

A vessel named MV PHU THANH carrying 10,000 metric tonnes of rice has arrived at Chittagong  Port from India. The rice was brought under open tender contract (Package-8) signed on March 2, 2025, said a press release. Under the agreement, a total of five lakh metric tonnes  of rice will be imported from India. Rice prices to stabilise within two weeks: Commerce Adviser So far, 3.53 lakh metric tonnes of rice have already arrived in the country as per the agreement. The sample testing of the rice stored on the ship has been completed and the process of unloading the rice will begin promptly, it said.  

A consignment of 26, 250 metric tonnes of rice arrived at Chittagong Port from Pakistan on Saturday. The Pakistani vessel named ‘MV MARIAM’ carrying the rice under the Government-to-Government (G2G) deal anchored at Chittagong Port in the morning, said a media release of the Food Ministry. The unloading of the rice started after conducting the sample test, it said.  

Retail rice prices in Dhaka have risen by Tk 2 to Tk 3 per kilogram due to alleged supply shortage, despite steady wholesale market prices over the past five days. During visits to various kitchen markets, it was found that retailers have raised prices by Tk 2 to Tk 3 per kg, citing reduced supply from wholesalers. Despite no increase in wholesale prices, some retailers have opted to sell rice at higher prices. Govt to launch rice open market sale at Tk 30 per kg from Feb 1 Fazlu Mia, owner of Bhai Bhai Rice Agency in Mogbazar Kacha Bazar, told UNB that he received only 100 sacks of rice from Naogaon, instead of the usual 150 sacks. As a result, he felt compelled to increase his rice prices by Tk 2 to Tk 3 per kilogram, attributing it to the supply shortage. In the wholesale market, the prices of various types of rice were observed as follows: ·         Miniket rice: Tk 75-79 per kg ·         BR-28, BR-29: Tk 60-64 per kg ·         Nazirshail: Tk 76-84 per kg ·         Swarna: Tk 52-54 per kg ·         Pajama: Tk 57-58 per kg ·         Basmati: Tk 94-98 per kg ·         Aromatic rice (Chinigura): Tk 110-115 per kg At the retail level, the prices are slightly higher: ·         Miniket rice: Tk 84-85 per kg ·         BR-28, BR-29: Tk 65-68 per kg ·         Swarna: Tk 56-58 per kg ·         Nazirshail: Tk 80-85 per kg ·         Basmati: Tk 95-100 per kg ·         Aromatic rice (Chinigura): Tk 140 per kg Rojab Ali, a wholesaler, stated, "We are selling rice at the same prices as before. The prices have not increased yet." However, he acknowledged that the supply of rice is currently low, and the market may remain unstable until new rice enters the market. He also pointed out that imported rice has not yet arrived, making it unlikely for prices to decrease in the near future. Ali emphasized that the rice market's instability would persist until the syndicate controlling the market is broken. To address the rising rice prices, the government had previously withdrawn import and regulatory duties on rice in two phases, effective from October 20 and November 1. The decision aimed to increase supply and ensure that rice prices remained affordable for the common people. The National Board of Revenue (NBR) had expected these measures to reduce rice prices by at least Tk 9.60 per kilogram. Two ships carrying rice from India and Myanmar reach Ctg port According to the Bangladesh Bureau of Statistics (BBS), the average daily per capita rice consumption in the country is 328.9 grams. In urban areas, the daily consumption per capita is slightly lower at 284.7 grams. This consumption pattern requires a total of 2.6 crore tons of rice annually for the country's population of 170 million. Bangladesh produced over 4 crore tons of rice in the fiscal year 2023-2024. As of December 19, the Food Ministry reported that various food warehouses across the country held stocks of 744,000 tons of rice, 448,000 tons of wheat, and over 4,000 tons of paddy.  

The government will start open market sale (OMS) of rice at Tk 30 per kg from February 1 across the country, ahead of Ramadan. Food ministry issued a notice in this regard on Tuesday. The government took the decision to ensure rice at an affordable price for low-income people at the upazila level. Rice will be sold through OMS at a rate of 3 metric tons per day in each of the 401 upazilas across 61 districts and 1 metric ton per day in each of the 23 upazilas in 3 hill districts, covering a total of 424 upazilas through 848 distribution centers, it said. Record Aman harvest, yet rice prices soar: Who's to blame? Besides, under the OMS (General) program, 1 metric ton rice will be sold daily in 906 centers in Dhaka metropolitan area, district municipalities, 8 city corporations, and 4 labor-intensive districts (Dhaka, Narayanganj, Narsingdi, and Gazipur).  

The government will import rice, fertiliser and diesel and procure sugar and lentil from local suppliers to meet the domestic demands. Advisors’ Council Committee on Government Purchase (ACCGP) in a meeting on Tuesday, with Finance Adviser Dr Salehuddin Ahmed in the chair, approved a number of proposals in this regard. Following the meeting, the Finance Adviser said the committee approved the proposals in order to ensure steady flow of supply of essential commodities like rice, sugar, lentil, fertiliser and fuels. "We'll try to ensure smooth flow of supply in the market during the Ramadan… Even until the end of the coming Ramadan. Not only the supply, there needs to be strict monitoring as well,”he told reporters. Bangladesh Petroleum Corporation (BPC), under the Energy and Mineral Resources Division, will import 130,000 MT of diesel from India. Indian Numaligarh Refinery Limited will supply the bulk diesel at a cost of Tk 1137.96 crore. As per the proposals approved by the ACCGP, the Food Directorate, under the Ministry of Food, will import 100,000 Metric Tons of white rice (Atop Rice) from Vietnam on a G-to-G basis. Read: Bangladesh to import 100,000mt of rice from India and Pakistan Vietnam Southern Food Corporation (VINAFOOD II) will supply the bulk rice at a cost of Tk 578.58 crore, with per MT at $474.25. Bangladesh Agriculture Development Corporation (BADC), under the Ministry of Agriculture, will import 30,000 MT of TSP fertiliser from OCP Nutricrops of Morocco under a state-level agreement at a cost of Tk 161.04 crore, with per MT at $440. Trading Corporation of Bangladesh (TCB), under the Commerce Ministry, will procure 10,000 MT of sugar through a local open tender. City Sugar Industries Ltd will supply the bulk sugar at a cost of Tk 115.42 crore with per kg at Tk 115.42. TCB will also procure 10,000 MT of lentil through local open tender. Read more: Government to import rice, LNG to meet domestic demand Sheikh Agro Food Industries will supply the bulk lentil at a cost of Tk 98.45 crore with per kg at Tk 98.45.

Chittagong Port has received 22,000 metric tonnes of Atap rice from Myanmar, transported by the MV Golden Star vessel. The rice consignment, imported on a government-to-government (G2G) basis, marks the first shipment of its kind under the current interim government, said the Ministry of Food in a media release issued on Friday (Jan 17). Bangladesh to import 100,000mt of rice from India and Pakistan It said samples from the shipment will undergo physical testing before unloading begins and all necessary arrangements have already been made to ensure a smooth process. This shipment follows a separate agreement between Bangladesh and Pakistan to import rice. On January 14, a Memorandum of Understanding (MoU) was signed at the Food Ministry between the Directorate General of Food and Pakistan’s Trading Corporation (TCP). Record Aman harvest, yet rice prices soar: Who's to blame? Abdul Khalek, Director General of the Directorate General of Food, and Syed Rafi Bashir Shah, Chairman of TCP, signed the MoU on behalf of their respective organisations. According to sources at the Directorate General of Food, the procurement process will commence following approval from the government’s purchase committee. Shipments from Pakistan are expected to begin arriving by February. Consignment of 2,450 metric tonnes of Indian rice arrives at Darshana Port The Food Ministry stated in its release that the MoU is anticipated to stabilise the domestic rice market while fostering economic and trade relations between the two countries. "This agreement is expected to open a new chapter in strengthening bilateral ties and ensuring food security," the statement said.

Acknowledging the suffering of general people due to rice price hike, Commerce Adviser Sk. Bashir Uddin has said that the government cut a 60 percent duty on rice import to keep the local market stable. He said this while talking to reporters after a meeting with his Turkey counterpart Prof Dr Ömer Bolat at the Secretariat on Thursday. Asked about the preparedness ahead of the Ramadan to keep commodities at tolerable levels, he said, “We are prepared overall with the Ramadan and taking several initiatives on the rice market at this moment. We are relaxing the import while the duty on rice import was about 63 percent; we have reduced it to 3 percent.” The Ministry of Food has been importing several lakh tonnes of rice from India, Pakistan and Myanmar, said the adviser. Bashir Uddin assured that there would be no crisis of rice till April as a full season of Aman was going on now. There has been no inconsistency of any product so far. Read: Government aims to stabilize rice market, ensure trader support: Commerce Adviser Seeking cooperation from the reporters to take actions against syndicates who manipulate the rice market, he said that there was no crisis of the rice market now but the rice price hiked slightly due to the weather, flood and other issues. Warning of strict action against the manipulators, he hoped that the rice market would be stable soon. He said distribution of rice to 63 lakh families who hold TCB smart cards would begin this week and 50 lakh families would also get rice at lower price under the Food-friendly Programme. Replying to a query, adviser Bashir Uddin said they scrapped 37 lakh smart cards due to corruption as one more member from the same family managed cards through forgery. Read more: Government to import rice, LNG to meet domestic demand "We want to add another 37 lakh cards. If it’s possible to increase it from one crore by bringing transparency in procurement and marketing, we will do that too,” he said.