Impacts of increasing production costs on rice price: implications for food security

Food security is a major concern in Bangladesh due to the ever-increasing population as well as agricultural commodities' heightening costs. This paper sheds light on possible solutions to the challenge facing the Bangladeshi government to keep prices of rice within an accessible limit for the poor and to maintain a fair price for local farmers.

The document underscores the following findings:

• it is clear that food production is increasing by only creating huge pressure on agricultural lands, while a large number of populations are dependent on it
• the intensive use of agricultural inputs automatically increases production costs
  
• a further reason for increasing production costs is the significant increases in agricultural inputs’ pricesover the last few years
  
• it is evident that farmers earn a very negligible amount from their land unit compared to the total investments made in, land, inputs and labour
• if the paddy price increases, it will create a huge pressure on the purchasing capacity of the poor to meet daily food requirement
  

Recommendations include that:

• the government must reduce the price of agriculture inputs such as fertiliser, diesel, machinery and seeds
• a special incentive programme may be taken - interest rates on agriculture loans can be minimised and good quality seeds can be provided to the doorsteps of farmers in a minimum rate
• the government can increase food distribution and create new employment opportunities through its different social welfare programme for poor people.