Dhaka: Commerce Minister Khandakar Abdul Muktadir announced on Thursday that the government is focusing on reducing logistics costs, identifying them as a significant barrier to lowering Bangladesh’s persistently high food inflation.

According to United News of Bangladesh, the minister highlighted that while logistics costs account for around 10 percent of GDP in other countries, they stand at 16 percent in Bangladesh. He emphasized that curbing these costs could significantly reduce food inflation. The comments were made during an event on Bangladesh’s food chain, organized by the Centre for Policy Dialogue (CPD) at the BRAC Centre in the capital.

Muktadir noted that while other countries managed to control rising inflation six months ago, Bangladesh continues to struggle due to its complex market system. He stressed the need to tackle input costs and unaccountable financial transactions, such as extortion, to address the issue.

The minister also pointed out that despite each government focusing on the agriculture sector since the famine of 1974, the lack of coordination has prevented farmers from reaping maximum benefits. He underscored the importance of accurate market information reaching farmers, citing the example of potato farmers who suffer losses due to a lack of guidance on demand.

Furthermore, Muktadir called for more scientific and planned work in the agriculture sector, as most activities are currently conducted in a ‘natural way.’ He urged for an integrated plan to improve farmers’ living standards and streamline the market system.

The event was presided over by CPD Executive Director Fahmida Khatun.