United News of Bangladesh

The government has expected that inflation in the country will fall below 7 percent by June 2026 ‘due to its contractionary monetary policy and austerity measures. The expectation was expressed at a high-level meeting at the state guest house Jamuna on the country’s overall economic progress and budget expenditure on Monday under the leadership of Chief Adviser Prof Muhammad Yunus, according to a statement of the Chief Adviser’s press wing. Finance Adviser Salehuddin Ahmed, Planning Adviser Wahiduddin Mahmud and Bangladesh Bank Governor Ahsan H Mansur attended the meeting. The meeting reviewed key macroeconomic indicators, including inflation, wage growth, agricultural production, the financial and external sectors, remittance inflows, imports and the opening of letters of credit. Read more: Bangladesh inflation rises to 8.29% in November The 12-month average general inflation rate fell below 9 percent in November 2025 for the first time since June 2023 and on a point-to-point basis, inflation crossed 9 percent in March 2023, reaching 9.33 percent, it said. The point-to-point inflation dropped below 9 percent in June 2025 and declined further to 8.29 percent in November 2025. Regarding wage growth, the meeting observed that in recent years the gap between inflation and wage growth had been wide, resulting in a decline in real income. In recent months of the current fiscal year, the gap has narrowed significantly. In November 2025, point-to-point inflation and wage growth stood at 8.29 percent and 8.04 percent respectively, compared with average rates of 9.02 percent and 7.04 percent in fiscal year 2022-23. On agriculture, the meeting noted that appropriate incentives and management led to a good Boro harvest in the last fiscal year, while favorable conditions so far indicate the possibility of a good Aman harvest this season. Read more: Rice biggest driver of October’s food inflation in Bangladesh: GED As a result, the government is expected to achieve its food grain procurement target in the current fiscal year. As of December 15, 2025, Aman rice production reached 16.095 million metric tonnes, and officials expect the final output to exceed the target once harvesting is completed. Although Aus rice production fell slightly short of the target, total production increased by 7.20 percent compared to fiscal year 2024-25, said the Press Wing. Imbalances in various economic indicators have already moved towards a more stable position, said the statement. On the financial and external sectors, the meeting was informed that gross foreign exchange reserves stood at 32.57 billion US dollars as of December 18, 2025, up from around 25 billion dollars in August 2024. The reserve levels are expected to rise further due to a more stable exchange rate, increased remittance inflows and a significant rise in interest rates in the financial sector, it added. Regarding the current account, it was noted that Bangladesh had recorded consecutive deficits from fiscal year 2016-17 to 2023-24, amounting to 18.7 billion dollars, 11.6 billion dollars and 6.6 billion dollars in fiscal years 2021-22, 2022-23 and 2023-24 respectively. Due to improved financial management and measures to curb money laundering, the deficit narrowed to just 139 million dollars at the end of fiscal year 2024-25. In the July to October period of the current fiscal year the deficit stood at 749 million dollars. On remittances, the meeting noted that overseas employment for 500,000 workers was secured during July to November of the current fiscal year, compared with 397,000 during the same period last year. During the same period, remittance inflows amounted to 13.04 billion dollars, marking a 17.14 percent increase year on year. Import growth during July to November of fiscal year 2024-25 was negative at 1.2 percent but rose to 6.1 percent during the same period of fiscal year 2025-26, it said. Read more: Bangladesh Bank keeps policy rate unchanged amid inflation fears ahead of election and Ramadan On letters of credit, the meeting noted that the growth in opening LCs for capital machinery was negative 32.8 percent during July to October 2024 but increased to 27.7 percent in the same period of the current fiscal year. Similarly, growth in opening LCs for industrial raw materials rose from 10.1 percent to 40.98 percent over the same period.

The government is preparing a roadmap to boost rice production within two years to meet the increasing demand, said Agriculture Minister Muhammad Abdur Razzaque on Thursday. “This year aus, aman and boro paddy production reached record and government stock is at its highest yet price of rice has remained out of control,” he told journalists at the Secretariat after attending a meeting on increasing cultivation of inbred and super hybrid varieties of paddy to enhance production. He said production has to be accelerated by cultivating very high-yielding inbred and super hybrid varieties to make the grain affordable to low-income people.  Also read: Rice price is increasing beyond control despite having highest stock: Razzaque   The minister said agricultural land is on decline and to increase production the newly invented high-yielding varieties will need to be taken to the field immediately. The government has taken time-bound specific plans to increase aus, aman and boro rice production in the next season and expand their production in hill, haor and adverse areas, said Razzaque. Newly innovated BRRI 89 and BRRI 92 boro varieties can yield around one maund of rice cultivated in a decimal. To take it to fields immediately, a list will be prepared of the farmers who will produce these two varieties and their rice will be purchased as seed at higher prices than the market, he said. To encourage the farmers, seeds of these varieties will be provided free of cost and fertiliser at subsidised rates, he added.  The minister urged Bangladesh Bureau of Statistics (BBS) and the Department of Agricultural Extension to create a more reliable statistic on rice demand, production and productivity to remove discrepancy for taking the right decision.    The minister said rice prices in the country are currently rising and unstable as in the global market the prices of food grains have increased. Also read: OMS: Rice to be available at Tk 30 per kg from Thursday Wheat prices which were between $230 to $280 per tonne has now increased to around $450, he said.  “Around 48 lakh tonnes of wheat were imported in the 2020-21 fiscal year but only 16 lakh tonnes were imported until January this fiscal year for its high prices”, he said.  “There are currently 10 lakh Rohingya citizens in the country and every year 22 to 24 lakh new population get added so demand and consumption is on rise hence the rice price is a bit high but there is no food crisis in the country”, said Razzaque.

Agriculture Minister Dr Muhammad Abdur Razzaque on Monday said that the government took different initiatives to reduce the Tk 349 crore damage primarily caused by the flood.

Agriculture Minister Abdur Razzaque on Friday said agriculture will be mechanised to reduce the high cost of rice production.