Right policies to tackle crisis vital

With global food and fertiliser prices alarmingly high already, the government must come up with policy responses to offset the increase in poverty stemming from the Russia-Ukraine war, said policy researchers in a webinar organised by Bangladesh Institute of Development Studies (BIDS) yesterday.

Speakers said global food, fuel, and fertiliser prices have risen rapidly in recent months, largely driven by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia.

Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased, respectively, by 56 and 100 percent in real terms between June 2021 and April 2022.

Key discussant Paul Dorosh, policy researcher at International Food Policy Research Institute, said, "Government intervention in fertiliser supply chain, expanding domestic fertiliser production, and improving midstream factors of supply chain seems to be more effective than subsidies. Cash transfers to the lower income group is most effective to control poverty and food crisis."

Binayak Sen, research director of BIDS, moderated the webinar.