Food prices can be kept stable

A senior member of the United Nation's Food and Agriculture Organization warned that a worldwide food inflation could happen if the coronavirus pandemic leads to lockdowns and panic food buying. The good news is that supply is not a problem. There are ample supplies of staple grains and oilseeds in key exporting nations. But a change in the behavioural pattern of consumers, who might fear prices will rise and supply will fall short in future due to the effects of the pandemic and hoard food items, could push prices up.

We have already seen people forming long queues at supermarkets in some countries such as Singapore and the United States in recent weeks. But the panicked buying, where it has happened, has only led to unnecessary shortages and inflation—leading to more panicked buying followed by a repeat of the same cycle. As the number of people infected with the coronavirus in Bangladesh goes up, something like that could happen here also. To prevent that, the government has to reassure people that supply is not a problem and ask people not to hoard necessities. That is what the prime minister has done, and we welcome it.

However, the government must ensure prices remain stable from this moment on, also through effective management, coordination and monitoring. Should prices start to go up a little, it could become increasingly difficult to prevent panicked buying, therefore, the government cannot be late to this game as it has been on other instances. Suppliers must not be allowed to create artificial shortages, and the government must coordinate among domestic and international supply centres to deliver items where and when necessary.

In a crisis situation like we are in, logistics is a big factor. And so is preventing actions instigated by panic. The government's role in both cases will be crucial, but other stakeholders such as NGOs and international agencies must also get involved and support people and governments to avoid any inflationary cycle.