United News of Bangladesh

Global food prices dropped for the tenth consecutive month in January, the UN food agency said recently. Price indices for vegetable oils, dairy and sugar drove the January decline, the Food and Agriculture Organization of the United Nations (FAO) said Friday. The FAO Food Price Index fell 17.9 percent below its peak reached in March 2022 following Russia's full-scale invasion of Ukraine. The downward pricing trend was helped in part by a pivotal agreement signed in July to unblock Ukraine grain exports amid the ongoing war. Tracking monthly changes in the global prices of commonly traded food commodities, the latest index averaged 131.2 points in January, falling 0.8 percent since December. The FAO reported small price decreases on its latest meat and sugar indices. "Strong harvest progress in Thailand and favourable weather conditions in Brazil outweighed the impact on sugar prices due to concerns over lower crop yields in India, higher gasoline prices in Brazil, which support demand for ethanol, as well as the Brazilian real's appreciation against the US dollar," the UN agency said. Also, vegetable oil prices fell 2.9 percent, stemming from subdued global import demand for palm and soy oils and ample export availability of sunflower seed and rapeseed oils. Cereal prices remained essentially unchanged since December. International wheat prices fell for the third consecutive month. The 2.5 percent decrease relates to Australia and Russia outpacing production expectations. Meanwhile, slightly higher global maize prices were rooted in a strong demand for exports from Brazil and concerns over dry conditions in Argentina. Cheese became slightly more expensive despite dairy prices averaging 1.4 percent lower than in December, which came after lighter demand from leading importers and increased supplies from New Zealand. Currency movements drove the price increase alongside a recovery in food services and retail sales in Western Europe following the New Year holiday. Global rice prices climbed 6.2 percent from December, triggered by tighter availability. Other factors included strong local demand in some Asian exporting countries and exchange rate movements. In its latest Cereal Supply and Demand Brief, the FAO expects international trade in cereals in the 2022/23 period to decline by 1.7 percent from the previous year's record level to 474 million tons. Early indications point to likely area expansions for winter wheat cropping in the northern hemisphere. However, higher costs may affect the amount of fertiliser that can be applied to crops, with adverse implications for yields. Low domestic prices could result in a small cutback in wheat plantings in Russia, the world's largest exporter, while severe war-induced impacts in Ukraine are estimated to reduce winter wheat area plantings by 40 percent. Record planting is forecast for India, spurred by high market and support prices, and relatively high planting is projected in Pakistan as standing water from the 2022 floods is causing less hindrance than initially anticipated. In the southern hemisphere countries, most of the 2023 coarse grain crops have been sown. Brazil may post record maize plantings, while those in Argentina could decrease due to low soil moisture levels and weather conditions augur well for maize yield prospects in South Africa, the FAO said. Read more: Global food prices in 2022 hit record high amid drought, war

Global prices for food commodities like grain and vegetable oils were the highest on record last year even after falling for nine months in a row, the U.N. Food and Agriculture Organization said, as Russia’s war in Ukraine, drought and other factors drove up inflation and worsened hunger worldwide. The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, dipped by 1.9% in December from a month earlier, the Rome-based organization said Friday. For the whole year, it averaged 143.7 points, more than 14% above the 2021 average, which also saw large increases. The December decline was led by a drop in the price of vegetable oils amid shrinking import demand, expectations of increased soy oil production in South America and lower crude oil prices. Grain and meat were also down, while dairy and sugar rose slightly. Read: ‘Seeing signs of looming global food crisis, Bangladesh must be protected’ “Calmer food commodity prices are welcome after two very volatile years,” FAO chief economist Maximo Torero said in a prepared statement. “It is important to remain vigilant and keep a strong focus on mitigating global food insecurity given that world food prices remain at elevated levels, with many staples near record highs, and with prices of rice increasing, and still many risks associated with future supplies.” Last year, the U.N. organization’s Food Price Index hit the highest level since its records began in 1961, according to FAO data. Russia’s invasion of Ukraine in February exacerbated a food crisis because the two countries were leading global suppliers of wheat, barley, sunflower oil and other products, especially to nations in parts of Africa, the Middle East and Asia that were already struggling with hunger. With critical Black Sea supplies disrupted, food prices rose to record highs, increasing inflation, poverty and food insecurity in developing nations that rely on imports. Read: ADB plans to provide $14 billion to ease worsening food crisis in Asia The war also jolted energy markets and fertilizer supplies, both key to food production. That was on top of climate shocks that have fueled starvation in places like the Horn of Africa. Ethiopia, Somalia and Kenya are badly affected by the worst drought in decades, with the U.N. warning that parts of Somalia are facing famine. Thousands of people have already died. Prices for wheat and corn reached a record high last year, though they fell in December along with the costs of other grains, the FAO said. It said harvests in the Southern Hemisphere boosted supplies and there was strong competition among exporters. The organization’s Vegetable Oil Price Index hit an all-time high last year, even as it tumbled in December to its lowest level since February 2021. For all of 2022, the FAO Dairy Price Index and Meat Price Index also were the highest since 1990.

Agriculture Minister Muhammad Abdur Razzaque has said that those who create artificial food crisis must be brought under the law. The minister was talking to journalists before inaugurating a training workshop on the best use of high-yielding seeds at Mymensingh Town Hall on Monday. He said that in the market economy the government should not set the prices of goods. He, however, said food shortage and spiraling prices have no relation with fixed price. “In a market economy, fixed rates of goods can’t be implemented. Instead, an indicator of minimum prices can be provided. Monitoring and controlling the market are the keys here. Those who engage in profiteering by suddenly increasing the prices of essentials have to be punished and their trade licenses have to be cancelled,” Razzaque said. The minister added that the concerned ministries, including the Commerce Ministry, the Food Ministry, the Fisheries and Livestock Ministry and the Agriculture Ministry, must cooperate and coordinate to keep food prices in check. Read: No food shortage in country: Agriculture Minister Replying to another question, Razzaque  said that the government is on the right track in tackling food crisis. “There hasn’t been any food crisis in the country in the last 13 years. Even, the government has ensured food security amidst the Covid-19 pandemic and the ongoing Russia-Ukraine war. We’re currently focusing on increasing food production so that we may not have to face any adverse situation in the future,” Razzaque said.   The workshop was presided over by Agriculture Secretary Md Sayedul Islam. Ikramul Haque Titu, Mayor of Mymensingh City Corporation (MCC), Kazim Uddin Ahmed, Member of Parliament (MP) from Mymensingh-11 constituency, and Anwarul Abedin Khan, MP from Mymensingh-9 constituency, among others, spoke at the event. 

Soki Wu’s food stall, tucked in a food court in a shopping mall in Singapore, is a crowd favorite for its fresh, juicy “chicken rice,” a national dish. But customers recently began complaining that his chicken didn’t taste quite as good as it used to. Wu was forced to switch to frozen chicken after Malaysia banned exports last month of live broiler chickens that are more affordable and better tasting in a bid to offset rising local prices. For Singapore, which sources a third of its poultry from Malaysia, the impact was immediate. “This is unavoidable. Using frozen chickens have affected the taste of the dish, but we have no choice,” Wu said. As inflation surges around the world, politicians are scrambling for ways to keep food affordable as people increasingly protest the soaring cost of living. One knee-jerk response has been food export bans aimed at protecting domestic prices and supplies as a growing number of governments in developing nations try to show a nervous public that their needs will be met. For business owners, the rising cost of cooking ingredients — from oil to chicken — has prompted them to raise prices, with people paying 10% to 20% more at Wu’s food stall. For consumers, it has meant paying more for the same or lesser-quality food or curbing certain habits altogether. In Lebanon, where endemic corruption and political stalemate has crippled the economy, the U.N. World Food Program is increasingly providing people with cash assistance to buy food, particularly after a devastating 2020 port blast that destroyed massive grain silos. Constant power cuts and high fuel prices for generators limit what people can buy because they can’t rely on freezers and refrigerators to store perishables. Tracy Saliba, a single mother of two and business owner in Beirut, says she used to spend around a quarter of her earnings on food. These days, half her income goes to feeding her family as the currency loses strength amid soaring prices. Read: G20 finance leaders in Bali to tackle Ukraine, inflation “I’m not buying (groceries) like I used to,” Saliba said. “I’m just getting the necessary items and food, like day by day.” Food prices have risen by nearly 14% this year in emerging markets and by over 7% in advanced economies, according to Capital Economics. In countries where people spend at least a third or more of their incomes on food, any sharp increase in prices can lead to crisis. Capital Economics forecasts that households in developed markets will spend an extra $7 billion a month on food and beverages this year and much of next year due to inflation. The pain is being felt unevenly, with 2.3 billion people going severely or moderately hungry last year, according to a global report by the World Food Program and four other U.N. agencies. Food prices accounted for about 60% of last year’s increase in inflation in the Middle East and North Africa, with the exception of oil-producing Gulf countries. The situation is particularly dire for Sudan, where inflation is expected to hit 245% this year, and Iran, where prices spiked as much as 300% for chicken, eggs and milk in May, sparking panic and scattered protests. In Somalia, where 2.7 million people cannot meet their daily food requirements and where children are dying of malnutrition, sugar is a source of energy. In May, a kilogram (2.2 pounds) of sugar cost about the equivalent of 72 cents in Mogadishu, the capital. A month later, it had shot up to $1.28 a kilogram. “In my home, I serve tea (with sugar) three times a day, but from now on, I have to reduce it drastically to only making it when guests arrive,” said Asli Abdulkadir, a Somali housewife and mother of four. People there are bracing for even higher costs after India announced it would cap sugar exports this year. Even if that doesn’t reduce India’s sugar exports compared with previous years, news of the restriction was enough to cause speculation among traders like Ahmed Farah in Mogadishu. “The cost of sugar is expected to surge since Somalia counts heavily on the white sugar exported from India and a few brown sugars from Brazil,” he said. Also read: US inflation surges again in June, raising risks for economy Food export restrictions aimed at protecting domestic supplies and capping inflation is one reason for the rising cost of food. Food prices had been steadily climbing worldwide because of drought, supply chain issues, and high energy and fertilizer costs. The U.N. Food and Agriculture Organization says food commodity prices were up 23% last year. Russia’s war in Ukraine further sent the price of wheat and cooking oils up, fueling a global food crisis. There was a breakthrough this week to create safe corridors for Black Sea shipments, but Ukrainian ports have been blocked from exporting these key goods for months and it will take time to get them moving again to vulnerable countries worldwide. There’s concern that the impact of all these factors will lead more countries to resort to food export bans, which are felt globally. When Indonesia blocked the export of palm oil for a month in April, palm oil prices spiked by at least 200%. Analysts say food export bans are shortsighted because they have a domino effect of driving up prices. “I would say that roughly 80% of the bans we see are ill-advised — a kind-of, sort-of gut reaction by certain politicians,” said David Laborde, who is credited with creating a food trade policy tracker at the International Food Policy Research Institute. “In the world where you will be the only one to do it, that can make sense,” he said. “But in a world where other countries can also do it, actually that’s far from being a good idea.” Laborde said bans are “a very selfish policy ... because you try to get better by making things worse for others.” The list of food export restrictions Laborde has been tracking since the COVID-19 pandemic is long and changes constantly. Examples of their impact include Kazakhstan’s restrictions on grains and oil on prices in Uzbekistan, Tajikistan, Turkmenistan and Afghanistan; Cameroon’s rice export restriction on Chad; and Tunisia’s fruit and vegetable restrictions on Libya. In Singapore, 29-year-old Wu is hopeful he can keep the family business running as Singapore’s government signed off on Indonesia as a new chicken supplier. “Things will get better,” he said. “(This) will only make us more resilient.”

Though the flood waters have started receding in different parts of the country the people of Sylhet's Beanibazar upazila are suffering from severe food crisis. The prices of daily commodities, especially dry foods used for relief have shot up multiple-fold in a week. During a recent visit to different shops in the area, the UNB correspondent found that before the floods flattened rice (chira) sold at Tk 80 per kg is now being sold at Tk 100. A week ago, the price of this flattened rice was Tk 55 to 60 per kg. The price of puffed rice (muri) has doubled in the area within a week. Last Friday, the puffed rice sold at Tk 53-to 55 per kg is now being sold at Tk 110. Read: Flood situation in 6 Sylhet upazilas takes a turn for the worse The price of rice and lentils have also increased. Onions were being sold at Tk 40 per kg and potatoes at Tk 20 per kg. Even a week ago, onions were sold at Tk 35 per kg and potatoes at Tk 20 per kg. Price of eggs, one of the main protein items, significantly increased in this flood-hit area over the past few days, landing the consumers in more trouble. The price of a hali (four pieces) of eggs rose to Tk 45-48 at retail markets from Tk 38-42 earlier. As there is an acute shortage of dry wood due to floods in the area, the price of charcoal has increased significantly. Earlier, it was sold at Tk 400 to 500 per maund and is now being sold at Tk 950 per maund.(1 maund=38kg) Shamim Ahmed, a grocer in Uttar Bazar in Beanibazar municipality, said that some unscrupulous traders are taking advantage by increasing the price of dried food. Shaheen Alam Hridoy, joint secretary of Beanibazar Press Club, said the way in which the prices of products used as relief for flood victims are increasing day by day is inhumane. The administration should monitor the market and bring such rogue traders under the law. Beanibazar Upazila Nirbahi Officer Ashiq Noor said it was not possible to monitor the market due to the floods. However, action will be taken soon, he added.

Global finance leaders are putting the growing crisis over food insecurity and skyrocketing food prices at center stage as members of the International Monetary Fund and the World Bank meet in Washington and grapple with the brutal effects of Russia’s war against Ukraine. Treasury Secretary Janet Yellen was convening a Tuesday morning meeting with leaders from the IMF, World Bank, Group of Seven and Group of 20 global organizations to “call on international financial institutions to accelerate and deepen their response” to countries affected by food issues exacerbated by Russia’s aggression, the Treasury Department said. Also read: Food prices soar to record levels on Ukraine war disruptions Russia and Ukraine produce 14% of the world’s wheat supply, according to the United Nations, and the loss of commodities due to the war has resulted in soaring food prices and uncertainty about the future of food security globally, especially in impoverished countries. The U.N.’s Food and Agriculture Organization Food Price Index has made its biggest jump since its inception in 1990, reflecting an all-time high in the cost of vegetable oils, cereals and meat, according to the organization. A late March report from the organization stated that the global number of undernourished people could increase by 8 million to 13 million people into 2023, “with the most pronounced increases taking place in Asia-Pacific, followed by sub-Saharan Africa, and the Near East and North Africa. If the war lasts, impacts will go well beyond 2022/23.” Anna Nagurney, a crisis management specialist at the University of Massachusetts Amherst, said Tuesday’s meeting of global leaders was significant and “speaks to the growing fear and the increasing understanding that the world may be on the verge of a hunger catastrophe.” Nagurney predicted that countries that have not yet provided clear support for Ukraine — such as China and India — will come to realize that the food insecurity from a prolonged war in Ukraine will affect their own national stability and the welfare of their citizens. “This may help to further isolate Russia both morally and economically,” she said. Deputy Treasury Secretary Wally Adeyemo said Monday that the international coalition of countries imposing sanctions on Russia and its allies takes the food security threat seriously. Also read:Conflict may create widespread food insecurity in Ukraine: UN “One of the things we have to do is take practical steps to demonstrate that this system is helping the people who need it the most,” he said, which includes a “focus on those countries that are struggling to pay for things like bread for their people in light of the increase in commodities prices.” Russia is a member of the G-20, which is made up of representatives of industrial and emerging-market nations, but Treasury said that Russians would not be participating in the session on food security.

Centre for Policy Dialogue (CPD), a private research organization, in a study revealed that prices of different types of rice are much higher in Bangladesh than in Vietnam, Thailand and other countries. Similarly, prices of flour, sugar, edible oil, onion, powdered milk, eggs and meat are much higher than the international market, the study said. “Prices of essential commodities have skyrocketed in Bangladesh. But inflation in the international market is not the only reason for price hikes,” said Dr Fahmida Khatun, Executive Director of CPD. Also read: Dishonest traders raising prices of essentials: Food Minister She came up with the remarks while addressing CPD’s media briefing titled 'Bangladesh Economy in the changed global context', held at its office in Dhanmondi, Dhaka on Sunday. Dr Fahmida presented two research papers on 'Skyrocketing prices amid stable inflation?’ and 'Changing global scenario and Bangladesh Economy: what should be the policy stance?’ on the occasion. Professor Mustafizur Rahman, distinguish fellow CPD, Dr Zahid Hossain, former lead economist, World Bank, Dr Shah Mohammad Ahsan Habib, BIBM, Professor M. Tamim, Dr Tawfiqul Islam Khan, CPD’s senior fellow, among others, spoke in the program. The speakers focused on the essential commodity prices' situation, external sector, energy and power, banking sector and budget management. Presenting a research paper, Fahmida Khatun said that the prices of essential commodities are skyrocketing. But food inflation is controlled in government accounts, which is not matching with economic theory. From October 2021 to January 2022, the government entity calculates inflation constant at 5.3 percent. At this time inflation of some particular products was between 6 percent to 30 percent during that time while the inflation of food remained constant at 5.3 percent. Dr Fahmida questioned how that is possible. Professor Mustafizur Rahman said the export volume has not grown compared with the huge import; resulting in a trade deficit of $ 10 billion. Dr Zahid Hossain said the government budget expenditure is not growing despite surplus money. He urged a policy to fix up energy prices in the country for sustainable investment. For curbing inflation CPD suggested policy attentions at the government policy makers considering its more adverse impact on the vulnerable and marginalized groups. “All available policy tools should be utilized to control food inflation, including exempting duties and taxes on essential commodities both at domestic and import levels, extending social safety net programmes and raising income tax exemption level,” the CPD said. Stability of exchange rate must be ensured as the value of taka against major currencies should be stabilised in view of its inflationary implications. An independent banking commission should be formed on an immediate basis to mitigate the disarrays within the sector and loan recovery should receive the highest attention. Despite huge imports, the export did not grow. But this is not an accurate picture compared to reality. The pressure on low-income people is mounting. Non-food inflation has also risen sharply, the CPD suggestion urged to change the situation. The need for strong market intelligence is critical as unscrupulous market players have always been active to take advantage of difficult periods, by stockpiling and creating artificial crises in the market, CPD study said. Efficient market management through close monitoring and supervision will be critical to keep the commodity prices under control during Ramadan and beyond. Also read: LGRD minister blames soaring prices of essentials on pandemic & war The volume of sale of essential commodities through the open market system (OMS) should be increased. Distribution of these commodities must be managed effectively and without any corruption, so that the eligible people have access to these items at low prices. The government should provide direct cash support to the poor, enhance social protection for low-income families, and extend stimulus to the small businesses for their survival during difficult times, said CPD.

The food stock of Bangladesh has reached a new height of 20 lakh tons, with warehouses full of rice and wheat. Despite that, food prices are soaring. Market analysts and Food Ministry officials are mystified as to the reason behind food prices soaring in the domestic markets. According to the daily food grain situation report of the Ministry of Food, the total food grain stock in the country on February 9, 2022 was 20.02 lakh tons. Of this, the stock of rice was 16.94 lakh tons, wheat 2.77 lakh tons and 49,000 tons was paddy. Whereas the secure food stock level for the country is 10 lakh tons, the stock of food grains crossed 20 lakh tons. Past data shows that there has never been such an official stockpile of rice earlier. At this time last year, the amount of food grains stored in the government warehouses was 7.21 lakh tons. Of this, the stock of rice was 5.37 lakh tons, which was the lowest in a decade. Read: Power transmission from Payra and Rampal plants to Dhaka to wait for another 7-8 months Citing "current stock is satisfactory", the report said that aman paddy, rice and wheat procurement activities were being conducted from domestic sources and stocks of food grains were recorded due to import of rice from abroad. Despite good yields of aman and record production of paddy in the last boro season, several markets in the capital were visited recently which showed that the price of rice (old) is rising. According to the trading corporation of Bangladesh (TCB) coarse rice was sold at Tk 46 to 48 per kg in the capital's markets on Wednesday, February 17. It showed that prices have risen by 4.35 percent in one year. A fine variety of rice (Miniket-Nazirshail) has been sold at Tk 60 to 67 per kg. In a year it has increased by 7.6 percent.