Prime Minister Sheikh Hasina has said that there is a danger of intensifying the crisis as a result of the renewed conflict in the Middle East. He said that even in this situation, the government is making all-out efforts to control inflation and mitigate its impact on the people.

On Wednesday (May 8), the Member of Parliament for Nator-1 Constituency in the Jatiya Sangsad Bhavan. The Prime Minister said this in response to Abul Kalam’s written question.

Prime Minister Sheikh Hasina said that the government is always trying to alleviate the suffering of the people. To this end, the government has continued all kinds of activities to keep the price of daily necessities normal. We have already managed to contain the abnormal rise in consumer prices to a large extent. However, due to the increase in the prices of some products of the world market such as fuel oil, edible oil, wheat, fertilizers, various food products, consumer goods and industrial raw materials, the pressure of import inflation is being felt in our country. In addition, there is a danger that this crisis will intensify as a result of the renewed conflict in the Middle East. However, even in this situation, we are making every effort to control inflation and mitigate its impact on the people.

Indicating some steps to keep the price within the purchasing power of the common people, the Prime Minister said that in the main budget of the financial year 2023-24, there is a provision of 4 lakh metric tons of rice in the OMS sector. In order to keep the market price of rice and flour at a bearable level, a total of 869 metric tons of rice and 1 thousand 101 metric tons of flour are being sold daily in a total of 871 centers across the country under the OMS program. About 1.67 lakh metric tonnes of rice and 2.13 lakh metric tonnes of flour have been sold in the OMS (general) sector till April 11 of the current financial year.

Besides, the program of distribution of 50 thousand metric tons of rice per month to 1 crore families at subsidized price under family card through TCB has been taken. Apart from rice, 2 kg pulses and 2 kg soybean oil are also being distributed under this family card.

The head of government said that food assistance is being provided regularly to 50 lakh low-income families through the food friendly program for 5 months (September, October and November and March and April) by distributing 30 kg of rice to each family at the rate of 15 taka per kg. Under this programme, OMS rice is being sold at the rate of Tk 30 per kg in city corporations, municipalities and district towns. Internal food collection and distribution processes have been continued to provide assistance to low-income communities. A target of 22.19 lakh metric tonnes has been set for procurement of food grains from domestic sources in the financial year 2023-24.

Besides, 17 thousand crore rupees have been earmarked as agricultural subsidies and incentives in the financial year 2023-24. Subsidies and incentives given in the agricultural sector have indirectly helped in keeping down the prices of agricultural produce by reducing the cost of production of farmers. Special agricultural loans are being given at 4 percent interest under existing interest subsidy for the production of 24 crops including pulses, oil, spices, maize.

Moreover, social security programs have been expanded to protect the poor. Currently, 29 percent of the country’s families are covered under social security programs. In the financial year 2023-24, a total of Tk 1 lakh 26 thousand 272 crore has been allocated to the social security sector, which is 16.58 percent of the total budget. Various tax breaks are being provided to reduce inflation. Besides, appropriate measures are being taken by the Department of Consumer Rights Protection and the District Administration through Mobile Courts to keep the market prices of daily necessities stable and strictly suppress illegal hoarding. To control inflation, the policy (repo) interest rate has been increased in phases from 4.75 percent in May 2022 to 8 percent last time. Besides, the Standing Deposit Facility (SDF or Reverse Repo Rate) has been increased to 6.50 percent and the loan interest rate ceiling has been lifted. There has been a visible upward shift in market-based average interest rates due to significant increases in policy rates.

Sheikh Hasina said that the recent decline in the exchange rate has adversely affected domestic inflation. In this case, the crawling peg based currency exchange policy will soon be adopted with the aim of bringing stability to the foreign currency exchange rate. It is expected that this system based on defined corridors will prevent abnormal fluctuations in foreign exchange rates. As a result, it will also help in controlling inflation.