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...

Full description

Bibliographic Details
Main Author: Mahbub Hossain
Format: Article
Language:English
Published: International Journal of Food and Agricultural Economics 2014-01-01
Series:International Journal of Food and Agricultural Economics
Subjects:
Online Access:http://www.foodandagriculturejournal.com/vol2.no.1.pp51.pdf
id doaj-3ddee53e45a344a5a54840150d4dcd26
record_format Article
spelling 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
_version_ 1725226259367067648