Dhaka: Commerce Minister Khandakar Abdul Muktadir today emphasized the importance of reducing logistics costs and increasing agricultural productivity to combat persistent high food inflation in Bangladesh. 'High logistics expenses, rising production costs and market irregularities remain key factors behind elevated food prices,' he said.
According to Bangladesh Sangbad Sangstha, the minister made these remarks as the chief guest at a dialogue titled "Food Value Chain in Bangladesh: Market System, Profit Margin, and Role of Intermediaries," organized by the Centre for Policy Dialogue (CPD) at the BRAC Centre in the city. Muktadir noted that logistics costs in Bangladesh constitute around 16 percent of GDP, which is significantly higher than the global average of about 10 percent, and suggested that lowering these costs could help reduce food prices.
To enhance market efficiency, Muktadir announced the government's plan to introduce a traceability system across the entire food supply chain-from production to the consumer level-to identify and eliminate abnormal price increases and excessive costs. He highlighted that nearly 1.78 crore farming families have limited incomes and savings, hindering their ability to invest in modern technology. He also pointed out that information asymmetry is a major challenge, as farmers often lack reliable market information necessary for production planning and fair pricing.
The minister called for a technology-driven transformation of agriculture, advocating for an integrated agricultural management system tailored to Bangladesh's soil, climate, and farming conditions. He noted that while successive governments have provided subsidies for fertilizers, seeds, and irrigation, a coordinated approach based on research and innovation is essential to improve productivity and strengthen food security.
Describing agriculture as a high-risk sector dependent on natural conditions, Muktadir stressed the need for sustained government support, scientific research, and modern farming practices to ensure long-term food security. The dialogue, moderated by CPD Executive Director Dr. Fahmida Khatun, featured a keynote presentation by CPD Senior Research Associate Fakhruddin Al Kabir.
In his presentation, Fakhruddin Al Kabir urged the government to undertake comprehensive market reforms, including reducing unnecessary intermediaries, strengthening market oversight, and ensuring greater price transparency to contain food inflation and protect both consumers and producers. He recommended streamlining food supply chains by eliminating unnecessary intermediary layers and creating more direct marketing channels between farmers and consumers to improve market efficiency.
He also called for closer monitoring of wholesale markets to detect trader collusion and dismantle the dominance of powerful procurement intermediaries. To enhance competition, he suggested promoting digital trading platforms and strengthening farmer cooperatives so producers can access multiple buyers and secure fairer prices for their products.
Highlighting the importance of infrastructure, he called for increased investment in modern cold storage facilities, refrigerated transport, and other post-harvest management systems to reduce losses of perishable commodities. Among others, former Bangladesh Agricultural University Vice-Chancellor Professor Dr. Abdus Sattar Mandal, former Finance Secretary Siddiqur Rahman, former National Board of Revenue Chairman Abdul Majid, and Bangladesh Garments Sramik Samhati President Taslima Akhter Lima also spoke.