CPD wants to cut diesel prices to reduce crop production costs

The Center for Policy Dialogue said today the government should cut diesel prices to cut cultivation and transport costs to curb soaring production costs.

The recommendation came from the think tank when farmers started preparing to grow Boro rice, which contributes more than half of the total production of rice, the staple food.

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The CPD said the government had raised diesel prices by 23% to Tk 80 per liter and added that the use of oil was widespread in agricultural production, transport and rice milling.

As a result, the costs of producing and marketing rice are likely to increase.

Therefore, the cost-driven rise in the price of the upcoming Boro rice crop would create more inflationary pressure in the coming months, CPD Executive Director Fahmida Khatun told a news conference. on the CPD’s reading of the state of Bangladesh’s economy for the financial year 2021-22 at his desk. .

Inflation hit a 12-month high in October, according to the latest data from the Bangladesh Bureau of Statistics.

The independent think tank also suggested a re-estimate of annual national demand for rice.