Bangladesh Food Prices Climb Despite Strong Harvests, Squeezing Household Budgets

Rice, vegetables and fish put families under pressure

Rice accounted for 34% of Bangladesh's food inflation in March 2025, fish for 27% and vegetables for 14%, according to the General Economics Division (GED) of the Planning Commission. By July 4, rising prices for these everyday foods were placing growing pressure on household budgets, even after a bumper Boro rice harvest and government efforts to make imports cheaper.

Consumers in Dhaka and other major cities have faced increases across much of their shopping basket. Rice prices rose by Tk 3 to Tk 8 per kilogram over four weeks, depending on the variety. Vegetables became Tk 10 to Tk 40 more expensive per kilogram in many markets, while hilsa prices increased by Tk 100 to Tk 200 in a week.

Families with limited incomes have been hit hardest. Some shoppers now buy vegetables in portions as small as 250 grams because buying a full kilogram costs too much. Others are buying food on credit, cutting medical spending or drawing on savings to cover their meals.

Bangladesh's price pressure has several causes. Floods and heavy rainfall have damaged crops, transport has become more expensive, and international food and fuel prices affect domestic costs. Consumer advocates also accuse powerful traders and businesses of holding back supplies and raising prices through their control of the market.

The problem extends beyond the capital. Similar price increases have been reported across the country, affecting rural and urban consumers alike. A strong harvest can increase the amount of food produced, but the price families pay also depends on storage, distribution and the businesses handling food between the farm and the shop.

What shoppers are paying

Rice prices vary widely by quality and variety. Coarse rice, an essential purchase for many households with limited incomes, is selling for Tk 55 to Tk 58 per kilogram. Medium varieties such as BRRI-28 and BRRI-29 cost Tk 60 to Tk 66.

Finer rice varieties, including Miniket and Najirshail, sell for Tk 76 to Tk 90 per kilogram. In some markets, fine rice has reached Tk 100. The reported increase of Tk 3 to Tk 8 over four weeks means families face a higher bill even when they continue buying the same variety and quantity.

Vegetable prices have also climbed sharply. Brinjal, bitter gourd and long-yard beans sell for Tk 80 to Tk 150 per kilogram. Tomatoes have reached Tk 160 to Tk 300, while papaya, among the cheaper vegetables, rarely sells for less than Tk 50 per kilogram.

Hilsa now costs Tk 2,400 to Tk 3,200 per kilogram. Other commonly bought fish, including ruhi, katla and shrimp, have increased by Tk 20 to Tk 50 per kilogram. High prices for several kinds of food make it harder for shoppers to reduce their bill simply by choosing another item.

Onions, potatoes and eggs have experienced price swings too. Local onions retail for Tk 55 to Tk 65 per kilogram, potatoes for Tk 20 to Tk 65, and eggs for Tk 110 to Tk 160 per dozen. Egg prices have shown some recent relief, although the broader pressure on food budgets continues.

Why a strong rice harvest has not brought relief

Rice remains the largest single contributor to food inflation in the GED's March 2025 assessment. Its 34% contribution was higher than the shares attributed to fish and vegetables, making the staple a central concern for efforts to control the cost of eating.

Bangladesh recorded a bumper Boro harvest, and government production data showed robust output. Yet rice prices continued to rise. Experts attribute this combination to market manipulation, losses caused by earlier floods and higher international prices.

Coarse rice prices have increased by 57% compared with levels before the pandemic. Fine varieties have experienced even sharper rises. For households that buy rice regularly, a sustained increase in the staple's price leaves less money for fish, vegetables, healthcare and other needs.

Rice has economic and political importance because it is the staple food for most Bangladeshis. Changes in its price quickly affect food security, inflation and public sentiment. Food security means being able to obtain enough food reliably; rising costs can weaken that security even when food remains on sale.

Monzur Hossain, a member of the GED, described inflation as an urgent problem and called attention to the need for closer analysis of individual products:

Inflation is currently one of the most pressing issues. There are very few analytical reports that examine why inflation occurs and how different products contribute to it. The sharp increase in rice prices warrants urgent attention.

Hossain called for measures that address immediate pressure and longer lasting problems, including increasing rice production, improving supply chain management and strengthening market oversight. The government has reduced rice import duties and increased monitoring, but these efforts have had limited impact so far.

Floods and rainfall have reduced vegetable supplies

Heavy rainfall and flooding have disrupted vegetable production in several districts. According to the Department of Agricultural Extension (DAE), tens of thousands of hectares of crops have been damaged, particularly in the eastern regions, Mymensingh and Rangpur.

Vegetable supplies have fallen by 30% to 40% as a result of the damage. With demand remaining steady, the smaller volume reaching markets has pushed prices higher. Summer vegetables and vegetables grown for the beginning of winter have been especially affected.

Vegetables present a different supply problem from stored rice. They must move from growing areas to shops while still fresh, so damage to production and disruption along the journey can quickly affect the quantity available for consumers.

Farm and city prices also remain far apart. The reported price gap between village markets and urban retailers can reach 100% to 250%. Middlemen and the lack of direct routes from farms to markets contribute to this difference, adding to the cost faced by buyers in cities.

Improved supply in some markets has therefore not brought broad relief. Consumers and traders have called for stronger monitoring and action against unscrupulous practices throughout the distribution chain, alongside measures to address damage to crops.

Businesses face accusations of controlling rice prices

Consumer rights groups and market observers have repeatedly accused powerful business syndicates and traders of artificially raising food prices. The allegations include hoarding goods, restricting supplies and creating a sense of scarcity. Some of the groups accused of these practices have political connections.

Rice is a particular focus of these concerns. Millers and corporate businesses are accused of buying paddy cheaply from farmers, storing it and selling rice at higher prices later, including during peak harvest periods. Paddy is rice before its outer husk has been removed at a mill.

SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), described how he believes corporate control affects prices after farmers sell their crops:

Corporate entities are now controlling the rice market. They buy paddy from farmers at the very beginning. Then, after the paddy leaves the farmers' hands, they increase the price of rice. For the past few seasons, they have been influencing the rice market in this way.

His account places attention on the stages after the harvest. Farmers may sell their paddy at a low price, while consumers later face a much higher price for milled rice. Consumer advocates want regulators to examine storage, trading and distribution practices as part of their response.

Market manipulation remains an allegation raised by consumer groups and observers. Their proposed response is stronger enforcement against hoarding and unlawful price control, together with greater transparency about how food moves through the market.

Transport and international costs add to the bill

Higher fuel prices and transport costs have made it more expensive to move food to urban markets. Even when farms have adequate supplies, the cost of getting goods to shops can add a substantial amount to the retail price.

Vegetables and fish are particularly exposed to distribution costs because they spoil quickly. Fish prices have remained high despite increased supplies of some varieties, with transport expenses, alleged market manipulation and seasonal increases in demand, including during festivals, contributing to the pressure.

Bangladesh also faces changes in international markets. Fluctuations in the prices of rice, wheat and fuel, together with disruptions to global supply chains, feed into domestic food costs. The Russia-Ukraine war has affected wheat imports, while higher global oil prices have raised production and distribution costs.

Consumers therefore face pressures from both inside and outside Bangladesh. A better local harvest can help increase supply, but imported food prices, fuel costs and the way goods are traded still influence what shops charge.

Bangladesh's experience reflects pressures affecting other developing countries, including climate change, geopolitical tensions and unstable commodity prices. At home, inflation has hovered around 10% since 2023, with food inflation reaching nearly 13% at times.

Families cut purchases and other essentials

Households with low or moderate incomes are spending a larger share of their income on basic groceries. To keep buying food, many have reduced spending on nutrition, healthcare and other essentials. Some also reduce the amount they eat or take on debt.

Abdur Rahman, who runs a small roadside hotel in Dhaka, described increases after Eid and the pressure on his family:

After Eid, the price of all vegetables went up by around Tk 10 per kg. Potatoes are more expensive now. If the government does not monitor the market properly, prices may rise even more. It's becoming a burden on my family.

Shoppers across Dhaka describe similar difficulties. Buying 250 grams of vegetables at a time lowers the amount paid during a single visit, but it also reflects how tightly families must manage their cash when kilogram prices rise.

The World Food Programme (WFP) reported that the average food cost per person for people below the poverty line rose by 58% over two years, from Tk 1,851 in 2022 to Tk 2,923 in February 2024. The increase illustrates how food expenses had already grown before the latest market price rises.

Food insecurity affected 17% of people in February 2024, up from 15% in the previous month. The WFP findings also described the choices households were making to cope:

• 68% of households were cutting costs.
• 43% were buying food on credit.
• 22% had reduced medical expenses.
• 13% were relying on savings.
• Only 21% of households facing food insecurity were receiving any form of assistance.

The low reach of assistance leaves many vulnerable households managing rising costs through their own spending cuts, borrowing and savings. High prices have also fuelled public frustration, weakened trust in institutions and contributed to political instability.

Government measures meet public scepticism

The government has reduced import duties on rice, potatoes, sugar, oil and onions in an effort to improve supplies and lower costs. It has also halved the margin required to open letters of credit for imports. A letter of credit is a bank arrangement used to pay an overseas supplier; a lower margin reduces the amount an importer must provide at the start.

Authorities have increased market monitoring and surveillance of key businesses in the supply chain. Interest rates have also been raised to curb demand and control inflation. Higher interest rates make borrowing more expensive, which can restrain spending.

Public confidence in these efforts remains weak. A survey found that 44.7% of respondents believed the government had performed poorly in controlling prices. Only 23.8% thought the current administration was doing better than its predecessor.

Most respondents, particularly women, felt that the situation had either stayed the same or worsened. Their responses underline the gap between policy measures and the prices households continue to encounter when buying food.

Consumer advocates and experts argue that stronger rules and enforcement are needed to address the influence of market syndicates. They also call for support for local farmers, more diverse sources of supply and investment in agriculture that can better withstand floods and other climate pressures.

Proposals focus on fair markets and reliable supplies

Mustafa Kamal Mujeri, executive director of the Institute for Inclusive Finance and Development, called for competition and action against unlawful control of markets:

We have to make our market competitive and justified. There should not be any opportunity for the influential quarter to control the market unlawfully.

Experts and consumer advocates propose giving regulators stronger powers to monitor trading, act against hoarding and price manipulation, and improve transparency throughout the supply chain. They also argue that farmers need subsidies, training and access to technology to increase domestic production and reduce dependence on imports.

Better transport, storage and distribution facilities could reduce costs and limit losses after crops are harvested. Direct routes from farms to markets would address the large gaps between village prices and city retail prices, while more diverse supply sources could help reduce pressure when one source is disrupted.

Expanded food assistance is another priority because only 21% of households facing food insecurity were receiving help in the WFP findings. Wider support would cushion vulnerable families against price shocks and reduce the need to cut medical spending or buy food on credit.

Investment in sustainable agricultural practices and disaster preparedness is also proposed to reduce damage from future floods and other natural disasters. Advocates want governance problems addressed and public welfare placed ahead of vested interests, alongside efforts to support political stability.

New harvests and improved supplies may bring some relief. Lasting improvement depends on effective reforms, fairer market practices and restored confidence that essential food can reach consumers at affordable prices.

How the pressure developed

The figures describe developments across several periods, from the rise in food costs after 2022 to the contribution of individual foods to inflation in March 2025. Together, they show why the latest increases have landed on households already under financial strain.

• 2022: The average food cost per person for people below the poverty line was Tk 1,851, according to the WFP comparison.
• Since 2023: Inflation has hovered around 10%, with food inflation reaching nearly 13% at times.
• January 2024: Food insecurity affected 15% of people.
• February 2024: Food insecurity rose to 17%, and the average food cost per person below the poverty line reached Tk 2,923.
• March 2025: The GED attributed 34% of food inflation to rice, 27% to fish and 14% to vegetables.
• By July 4, 2025: Market observations described rice increases of Tk 3 to Tk 8 per kilogram over four weeks and a weekly hilsa increase of Tk 100 to Tk 200.

Families are facing the combined effect of those earlier cost increases and the latest rises in everyday purchases. Government import measures and monitoring have offered limited relief so far, while consumers continue adjusting how much food they buy and what other expenses they can afford.

Key Points

• Rice, vegetables and fish have become more expensive across Bangladesh, affecting urban and rural households.
• Rice contributed 34% of food inflation in March 2025, followed by fish at 27% and vegetables at 14%.
• Floods and heavy rainfall damaged tens of thousands of hectares of crops and reduced vegetable supplies by 30% to 40%.
• Consumer advocates accuse powerful businesses of hoarding and restricting supply, particularly in the rice market.
• Higher transport costs and international food and fuel prices also contribute to retail price increases.
• Families are cutting purchases, buying food on credit and reducing other spending; assistance reached only 21% of households facing food insecurity in the WFP findings.
• Import duty reductions, easier import financing, market monitoring and higher interest rates have brought limited relief so far.
• Proposals include stronger enforcement, support for farmers, better distribution, wider food assistance and preparation for future crop damage.