Vol.: 01 Issue: 01 : The War between Russia and Ukraine: Impact on Food Prices in Bangladesh

Sultan Ahmed:

Associate Professor, Department of Business Administration, Bangladesh Islami University, E-Mail: [email protected]

Keywords

Russian Ukraine war, Food price, Living cost.

JEL Classification:

M31, Q13

Abstract

Russia is the 3rd largest oil producer and 2nd largest exporter of oil and oil products in the world producing 10.5 million barrels per day. Russia is also 2nd largest natural gas producer and largest natural gas exporter in the world exporting 201.7 billion cubic meters of gas via pipelines in 2021, and 39.6 billion cubic meters of liquefied natural gas (LNG). Russia and Ukraine are also leading food grain suppliers in the world. As gas and oil are the major energy input in industry, the supply of energy is affected due to war between Russia and Ukraine and affects the cost of production everywhere in the world including Bangladesh. This research paper facilitates general population, researcher and business personalities informing what percentage of price of necessary commodities has already changed and affected people’s living cost during the period from January 2022 to September 2022. Price of all the staple food items such as rice, wheat, maize, fish, dal, edible oil etc. reached a record high in recent months. People’s living cost surpassed their income level and narrowed down living standard. Govt. takes various initiatives but they do not have any effect on price of consumer goods. Furthermore, the high inflation rate and dollar exchange rate affect the cost of production. If this war continues for longer period, the world’s population will suffer undoubtedly. Leading countries of the world should discuss how to stop the war and bring peace with us. Bangladesh govt. should take initiative to lower down the price of food products by offering subsidies in food production and energy sector. Govt. may lower down the tariff and taxes in case of importing food products.