世界发展银行-Trade-Responses-to-COVID-19-Food-Security-Concerns-in-Bangladesh_8页_301kb

Trade Responses to Covid-19 Food Security Concerns in Bangladesh

Core Content

This document examines the impact of the Covid-19 pandemic on food security in Bangladesh, with a focus on trade-related disruptions and policy responses to mitigate these effects. It highlights how border closures, trade restrictions, and logistical challenges have the potential to disrupt food supply chains, increase food prices, and exacerbate food insecurity, particularly among the poor.

Bangladesh is self-sufficient in rice production, but heavily reliant on imports for other essential food items such as wheat, sugar, and edible oils. The document emphasizes the importance of trade policies in addressing these challenges and proposes several measures to ensure food availability and affordability during the crisis.

Main Points and Key Information

1. Covid-19 and Food Security Risks

• The Covid-19 health crisis could lead to a food security crisis in Bangladesh if not managed properly.
• Border closures and trade restrictions may disrupt informal trade flows, which constitute a substantial portion of Bangladesh’s trade with neighboring countries like India.
• Domestic supply chain disruptions are currently more acute than international trade issues.
• Logistical challenges at Chattogram Port, such as storage shortages, are already affecting food availability.

2. Impact of Trade Restrictions

• Export restrictions by other countries (e.g., Russia, Vietnam, India) have led to price spikes in global food markets.
• Import tariffs and export bans can reduce availability and increase volatility of essential food products.
• Bangladesh's public food grain stock is sufficient, but pandemic-related shutdowns and labor shortages are affecting the Boro rice harvest, a major crop.

3. Trade Policy Recommendations

• Trade facilitation measures are essential to expedite the movement of essential food products.
• Automation and electronic procedures can reduce administrative burdens and improve logistics efficiency.
• Eliminating voluntary pre-shipment inspections (PSIs) for essential food products is recommended to ensure smooth trade.
• Reducing import tariffs and taxes on key food items can lower prices and increase availability.
• Lowering interest rates on import loans for essential commodities can stimulate imports and stabilize supply.

4. Regional Cooperation

• Cooperation with neighboring countries is crucial to avoid export restrictions and reduce trade costs.
• Bangladesh can lead regional initiatives within SAARC to coordinate trade responses and enhance food security.
• Southeast Asian neighbors such as Malaysia and Indonesia are major sources of edible oil and palm oil, and trade restrictions with these countries could impede supply.

Key Tables

Table 1: Food Production and Imports in Bangladesh (Million MT)

Table 2: Top 10 Food Imports in FY19

Table 3: Grain in Public Stock ('000 MT)

Table 4: Import Revenues for Key Food Products, FY19

Conclusion

The document underscores the vulnerability of Bangladesh's food security to Covid-19-induced trade disruptions and highlights the need for timely and effective trade policy responses. It suggests trade facilitation, tariff reductions, interest rate cuts, and regional cooperation as key strategies to ensure food availability and affordability. These measures are aimed at mitigating the economic and social impacts of the pandemic, especially on the poor and vulnerable populations.