WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH
Bangladesh has often been regarded as a country whose food security situation is frequently worsened by price rise of essential foodstuffs. Rice has been the most significant cereal food in Bangladesh because it accounts for around 42 percent of per capita daily energy intake. Food price rise has...
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doaj-3ddee53e45a344a5a54840150d4dcd262020-11-25T00:56:37ZengInternational Journal of Food and Agricultural EconomicsInternational Journal of Food and Agricultural Economics2147-89882014-01-01215163WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESHMahbub Hossain0Bangladesh Agricultural University, BangladeshBangladesh has often been regarded as a country whose food security situation is frequently worsened by price rise of essential foodstuffs. Rice has been the most significant cereal food in Bangladesh because it accounts for around 42 percent of per capita daily energy intake. Food price rise has become the most serious concern of majority of the country’s household as price rise becomes the regular phenomenon in the country. One-third of the country’s total population have been living under the poverty line. Regardless of the domestic rice production, Bangladesh imports around three million tonnes of rice every year which constitutes 17 percent of the country’s total import. Therefore, this empirical paper has attempted to explore how Bangladeshi local rice price is being affected by the world rice price, and how rising rice price affects household food security. In doing so, co-integration model and error correction model were applied to weekly rice price data obtained from the on-line database of the Food Policy Monitoring Unit of the Ministry of Food, Government of Bangladesh. The results confirm that world rice price and Bangladesh local market rice price are co-integrated. Although there has not been any immediate impact of world price shock in Bangladesh due to the influence of short term measures taken by the government, there are long term impacts of such price shock. Logit model has been employed to determine the rice price threshold beyond which households become unable to ensure their food security. For this purpose a sample of 80 poor households whose per capita income was less than $1, was surveyed in order to obtain the required data. The results of the logit model suggest that if rice price goes beyond Tk 34 per kilogram, sample poor households become extremely vulnerable in respect of food security. Finally, some recommendations have been made at the end of this paper based on the empirical findings.http://www.foodandagriculturejournal.com/vol2.no.1.pp51.pdfFood securityco-integration modelerror correction modelthe logit model |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Mahbub Hossain |
spellingShingle |
Mahbub Hossain WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH International Journal of Food and Agricultural Economics Food security co-integration model error correction model the logit model |
author_facet |
Mahbub Hossain |
author_sort |
Mahbub Hossain |
title |
WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH |
title_short |
WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH |
title_full |
WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH |
title_fullStr |
WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH |
title_full_unstemmed |
WHAT IMPLICATIONS DOES THE WORLD FOOD PRICE RISE HAVE FOR FOOD SECURITY IN BANGLADESH |
title_sort |
what implications does the world food price rise have for food security in bangladesh |
publisher |
International Journal of Food and Agricultural Economics |
series |
International Journal of Food and Agricultural Economics |
issn |
2147-8988 |
publishDate |
2014-01-01 |
description |
Bangladesh has often been regarded as a country whose food security situation is frequently
worsened by price rise of essential foodstuffs. Rice has been the most significant cereal food
in Bangladesh because it accounts for around 42 percent of per capita daily energy intake.
Food price rise has become the most serious concern of majority of the country’s household
as price rise becomes the regular phenomenon in the country. One-third of the country’s
total population have been living under the poverty line. Regardless of the domestic rice
production, Bangladesh imports around three million tonnes of rice every year which
constitutes 17 percent of the country’s total import. Therefore, this empirical paper has
attempted to explore how Bangladeshi local rice price is being affected by the world rice
price, and how rising rice price affects household food security. In doing so, co-integration
model and error correction model were applied to weekly rice price data obtained from the
on-line database of the Food Policy Monitoring Unit of the Ministry of Food, Government of
Bangladesh. The results confirm that world rice price and Bangladesh local market rice
price are co-integrated. Although there has not been any immediate impact of world price
shock in Bangladesh due to the influence of short term measures taken by the government,
there are long term impacts of such price shock. Logit model has been employed to
determine the rice price threshold beyond which households become unable to ensure their
food security. For this purpose a sample of 80 poor households whose per capita income was
less than $1, was surveyed in order to obtain the required data. The results of the logit model
suggest that if rice price goes beyond Tk 34 per kilogram, sample poor households become
extremely vulnerable in respect of food security. Finally, some recommendations have been
made at the end of this paper based on the empirical findings. |
topic |
Food security co-integration model error correction model the logit model |
url |
http://www.foodandagriculturejournal.com/vol2.no.1.pp51.pdf |
work_keys_str_mv |
AT mahbubhossain whatimplicationsdoestheworldfoodpricerisehaveforfoodsecurityinbangladesh |
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