Bangladeshi households, particularly low-income families, are being forced to spend up to 60% of their income on food, driven by persistent inflation and market manipulation by powerful middlemen and syndicates, according to a new study by the Centre for Policy Dialogue (CPD).

The findings were presented on Thursday at a seminar titled “The Food Price Chain: Markets, Margins and Intermediaries in Bangladesh” held at the BRAC Centre in Mohakhali. Commerce Minister Khandaker Abdul Muqtadir, agricultural economist M.A. Sattar Mandal, and other experts attended the event.

CPD said that even small increases in food prices have a significant impact on household living standards. More than 60% of families spend at least half of their income on food, while the poorest households allocate nearly 60% of their earnings to meet basic food needs. With real incomes failing to keep pace with inflation, many families are cutting spending on education, healthcare, and other essential services.

The report argues that rising retail food prices cannot be explained solely by higher production costs. Instead, it points to a market structure dominated by commission agents, intermediaries, and informal syndicates that influence prices throughout the supply chain, reducing competition and allowing unfair pricing practices.

CPD Executive Director Fahmida Khatun said inflation has remained elevated for the past four years, with food inflation placing the greatest burden on consumers. She noted that food prices are influenced by multiple factors, including production, marketing, supply disruptions, hoarding, and weak market competition.

Presenting the report, CPD Senior Research Associate Fakhruddin Al Kabir said nearly 30% of Bangladesh’s population remains food insecure, while declining real wages have eroded purchasing power. As a result, many households are drawing down savings or taking loans to cope with rising living costs, increasing their risk of falling into poverty.

The study found that 59% of the Consumer Price Index (CPI) consists of food items. The poorest 5% of households spend 59.8% of their total expenditure on food, compared with 28.9% among the wealthiest 5%.

Analyzing the supply chains of 10 essential commodities, the report found that retailers rely primarily on wholesale traders for six of them, increasing the potential for market concentration and price volatility. In the rice supply chain, millers account for the largest share of price increases.

According to the study, prices rise significantly between farm and retail levels, with increases of 116% for green chilies, 100% for rice, 87% for onions, 78% for lentils, 72% for eggplants, 50% for potatoes, 25% for eggs, 22% for chicken, 13% for beef, and 10% for rohu fish.

While acknowledging that a longer supply chain naturally adds costs, CPD emphasized that intermediaries are not solely responsible for higher prices. It said a transparent, efficient, and competitive supply chain is essential to ensuring fair prices for both producers and consumers.