K A S Murshid

Mohammad Yunus

This paper examines the complex relationship between rice prices and economic growth, poverty reduction, and food security in Bangladesh including the impact on producers and consumers. The impact on macro variables is also examined. Using available literature and knowledge of Bangladesh, the researchers investigate whether or not a relationship between economic growth/poverty reduction in Bangladesh and rice prices likely exists, and also discusses the mechanisms through which the two are potentially related. The paper finds that historically, the rice sector used to dominate Bangladesh agriculture and the economy as a whole, determining GDP growth rates, inflation, wages, employment, food security and poverty with the rice price being a very sensitive economic and political economy variable. This has changed dramatically with a much more diversified agricultural economy, declining share of agriculture and rice in GDP and rapid industrialization and growth of services.