Even though rice prices have decreased in the global market, there is no reflection in the country: CPD

Photo: Collected

The Center for Policy Dialogue (CPD) has said that although the price of rice in the world market has decreased by about 40 percent, there is no reflection of this in the domestic market. Although there is no shortage in rice production in the country, the organization has identified production costs and business syndicates as the main reasons behind the price increase.

CPD Executive Director Dr. Fahmida Khatun presented this information at a media briefing titled 'Bangladesh Economy 2025-26: Multidimensional Risks in the Electoral Curve' at her office in Dhanmondi on Saturday (January 10, 2026). CPD Honorary Fellow Professor Mostafizur Rahman and Research Director Golam Moazzem were present at the time.

While presenting the research data, Dr. Fahmida Khatun said that although the annual demand for rice in the country is about 31 million metric tons, the production is about 44 million tons. That is, there is no shortage in production. Even so, the price of rice is increasing, which indicates a major weakness in market management. According to her, consumers are not getting the benefits due to the increase in production costs and the presence of powerful business syndicates in the market.

She also said that the price of rice in the international market has decreased significantly, but there is no such effect in the domestic market. The same picture is seen in the case of sugar and edible oil. The fact that prices in the domestic market have not decreased despite the decrease in prices in the international market clearly shows the lack of competition and surveillance in the market.

CPD's research has revealed that high inflation has been ongoing in the country since 2023. Although inflation has decreased somewhat in recent months, the pace is very slow. Overall inflation was 8.49 percent in December. Although food inflation has decreased, non-food inflation has remained at around 9 percent. As a result, the link between the price of staple food items like rice and the inflation of other products is becoming stronger.

According to CPD, unless effective competition is ensured in the market and strict measures are taken to break the syndicate, the benefits of price reduction in the international market will not be received by the country's consumers. For this reason, the organization has emphasized strengthening surveillance in the market of daily necessities, including rice, and increasing transparency in the supply system.