Agri Biz
Fertilizer Prices in Bangladesh Surge by 105% Amid Ukraine War
In a recent study conducted by international humanitarian organization ActionAid, it has been revealed that the ongoing food and energy crisis, stemming from Russia’s invasion of Ukraine, has led to a significant escalation in the cost of living in some of the world’s most vulnerable communities. Bangladesh, in particular, has experienced substantial increases in various essential commodities, disproportionately impacting marginalized groups.
The study found that in Bangladesh, fertilizer prices have skyrocketed by 105%, while sugar prices have surged by 60%. Additionally, petrol prices have risen by 47%, and even the cost of sanitary pads has increased by 23%. These price hikes have posed numerous challenges, with women, girls, and children being particularly hard-hit. The report highlights how this situation has resulted in compromised education, nutrition, and overall health for these communities.
The study involved a survey of over 1,000 community members and leaders across 14 countries in Asia, Africa, and the Caribbean. It revealed that fertilizer prices have surged by more than 115% during the monitoring period, while petrol and sanitary pad costs have risen by 80% or more. Consequently, child marriage rates have soared, women’s health has deteriorated, and mental health conditions have worsened. These distressing trends persist despite the recent 11.7% decline in global food prices, as reported by the UN Food and Agriculture Organization’s Food Price Index since February 2022.
Alberta Guerra, Global Policy Analyst for ActionAid, emphasizes the disproportionate impact on vulnerable populations worldwide, particularly women and girls. She points out that these groups bear the brunt of surging food, fuel, and fertilizer prices, facing multiple crises that affect their food security, education, freedom from child marriage, and mental well-being.
The report sheds light on the intersecting challenges faced by Bangladesh, including climate disasters, the Ukraine-Russia war, the COVID-19 pandemic, debt stress, and currency depreciation. Climate disasters, COVID-19, and the invasion of Ukraine are cited as the most significant factors exacerbating the situation.
Farah Kabir, Country Director of ActionAid Bangladesh, highlights the far-reaching impact of fuel price instability on various sectors, especially food, which disproportionately affects women and marginalized communities. Kabir points out that the inflation rate of 9.5% reported by Bangladesh Bank does not reflect the harsh reality faced by marginalized communities, who now have to pay nearly double the previous prices for essential food items like rice and eggs. This has led to a significant decline in food consumption, adversely affecting community nutrition. Moreover, the high fuel prices have strained foreign reserves and national expenditure due to the energy sector’s heavy dependence on fossil fuels.
ActionAid advocates for a comprehensive approach and adequate funding to address the interconnected crises exacerbating the price crisis. These include climate change, debt stress, and the profound repercussions of the Russian invasion in Ukraine. Urgent adjustments to social protection measures are needed to match the current needs of the community. Encouraging families with children to prioritize and continue education is one recommended measure. Dependency on food imports should be addressed through increased investment in agroecology farming. A just transition to renewable energy and agroecological farming practices is crucial for community resilience against shocks and the climate crisis.
The perception-based survey conducted by ActionAid involved 1,010 community members in 69 communities across the 14 surveyed countries. Women constituted 63% of the respondents. The participants were asked about the current prices of various essential commodities compared to pre-crisis levels, and the impact of these price rises on their lives and communities. The countries included in the survey were Afghanistan, Bangladesh, the Democratic Republic of Congo (DRC), Ethiopia
Adviser to the Ministries of Finance and Commerce, Dr. Salehuddin Ahmed, emphasized today that the prices of commodities are closely linked to production and supply, and assured that the government is fully aware of the necessary steps to control these prices.
“We are very conscious of issues related to trade and commerce. My colleague, Dr. Wahiduddin Mahmud, who oversees the Ministry of Planning, is also focused on these matters. We are accustomed to handling such challenges,” Dr. Salehuddin remarked in response to reporters’ questions at the Ministry of Finance in Bangladesh Secretariat.
Earlier in the day, Dr. Salehuddin met with Edimon Ginting, the Country Director of the Asian Development Bank (ADB), at his office in the Economic Relations Division (ERD).
He noted that the government is also attentive to the impacts of imported inflation, stressing that only essential goods should be imported. “We must ensure that the additional burden on the general population is minimized and work to further reduce existing pressures,” he added.
Dr. Salehuddin also mentioned that the central bank governor is well-informed about the causes of rising inflation, which is why strict market monitoring is in place.
Addressing another question, he mentioned that the Bangladesh Bank Governor is actively managing the issue of increasing foreign currency reserves, and this topic will be raised in the upcoming annual meetings of the World Bank and the IMF.
When asked about the outcomes of his meeting with the ADB, Dr. Salehuddin expressed that development partners, particularly the World Bank and ADB, remain positive about continuing their operations in Bangladesh. He noted that the ADB and other partners have assured him of their ongoing cooperation in the development sector.
He further highlighted that the development partners are eager to advance pipeline projects in alignment with the government’s priorities.
Regarding the possibility of delaying Bangladesh’s graduation from Least Developed Country (LDC) status beyond 2026, Dr. Salehuddin acknowledged the complexity of the issue, noting that it involves various conditions and the involvement of multiple agencies, including the Ministry of Finance, Ministry of Commerce, and the National Board of Revenue (NBR). He assured that the government is closely monitoring the developments.
When asked about the demands from government employees for ration provisions, Dr. Salehuddin stated that both public and private sector employees are equally important, emphasizing the government’s priority to ensure that everyone can lead a decent life. “We are committed to ensuring that everyone benefits equally,” he said.
On his new responsibilities with the Ministry of Commerce, Dr. Salehuddin underscored the importance of local and international trade as key pillars of the economy. He assured that the government would strive to create a business-friendly and corruption-free environment in all business operations.
Recognizing the significant role of trade, commerce, and the supply chain in curbing inflation, Dr. Salehuddin promised prompt government action to address these issues.
He also mentioned plans to meet with the Ministry of Commerce and its subordinate bodies to tackle pressing matters. “You can be assured that I will do my utmost and take necessary steps swiftly,” he concluded.
The prices of daily essentials will come down gradually, Finance and Planning Adviser Dr Salehuddin Ahmed said today (14 August).
“Common people will get relief to some extent. But it can’t be said that the prices will decrease overnight,” he told reporters at the conference room of the Finance Ministry.
Responding to a question about syndicate in the market, he said, “There is nothing that has not come to our notice, I have some ideas, the governor also knows about it.
“The secretaries here are also very experienced and I told them that you will tell me everything without fear.”
Asked if any step will be taken regarding corruption, he said, “There was no discussion on the issue today.”
Responding to another question he said, “Action against corruption is an ongoing process, some processes need to be followed to punish someone. Some measures and action have already been taken.”
Responding to a question about the specific instructions given today, the finance adviser said the Industries and Agriculture ministries will do whatever needs to be done in the field of production, such as fertiliser supply and market management.
Cyclone Remal has inflicted severe damage on crops across 45,590 hectares of land in the Khulna agricultural zone, causing losses worth Tk 180.24 crore, as reported by the Directorate of Agricultural Extension (DAE) in Khulna.
According to Mohon Kumar Ghosh, Additional Director of the DAE Khulna Zone, 44,148.95 hectares of farmland suffered partial damage, while 1,450.90 hectares were completely destroyed in the four affected districts: Khulna, Bagerhat, Satkhira, and Narail.
In Khulna district, Cyclone Remal affected 3,565.65 hectares of cropland belonging to 13,796 farmers, resulting in losses estimated at Tk 42.98 crore. Bagerhat district witnessed damage to 12,611.50 hectares of cropland from 39,465 farmers, with losses amounting to Tk 97.36 crore. In Satkhira, 659.7 hectares of cropland owned by 12,156 farmers were affected, incurring losses of Tk 24.42 crore. Narail saw damage to 28,763 hectares of cropland from 8,620 farmers, with estimated losses of Tk 15.47 crore.
Speaking to BSS, Mohon Kumar Ghosh highlighted the extensive damage caused by Cyclone Remal to the southern coastal areas, particularly croplands. The affected crops include jute, Aush seedbed, aush cultivated land, groundnut, chili, bona Aman, ginger, turmeric, summer melon, litchi, mango, papaya, betel nut, sugarcane, banana, winter maize, sesame, and various Kharif season vegetables such as tomato, mung bean, and banana.
Following directives from Prime Minister Sheikh Hasina, efforts are being made to support the affected farmers. “We are working tirelessly to help the helpless farmers recover their losses,” Ghosh said, adding that the government is providing incentives and regular counseling and supervision at the field level to aid recovery.
In the coming months, the affected farmers will continue to receive various forms of government support to mitigate the impact of Cyclone Remal.
