High transport costs hinder Bangladesh food inflation fight, minister says

Bangladesh is working to reduce logistics costs as part of efforts to curb food inflation, commerce minister Khandakar Abdul Muktadir said Thursday.

Muktadir said logistics costs account for about 16% of Bangladesh’s gross domestic product, compared with roughly 10% in other countries. He said lowering those costs could help reduce inflation, which remains above 9%.

“Our market system is quite complex,” Muktadir said, adding that authorities must also reduce input costs and unaccountable financial transactions such as extortion.

Speaking at an event organized by the Centre for Policy Dialogue, Muktadir said poor coordination has prevented farmers from receiving the full benefits of government agricultural programs.

He also said farmers often lack accurate market information, causing them to produce crops beyond demand and suffer losses. Muktadir called for more scientific planning and an integrated agricultural market system.