Inflation Pushes Low-Income Families to Sell Assets and Borrow: Economists Urge More Food Aid for the Urban Poor

Low-income people are struggling to buy food under the pressure of inflation. As food prices rise, many families are selling assets and taking loans, creating a fresh risk of poverty. In this situation, economists have called for increased assistance, especially to ensure food security for poor families in cities, and for transparency in government food assistance programmes.

Speakers made the remarks at a discussion held at the National Press Club in the capital on Thursday, organised on the occasion of World Food Day 2026. The discussion, titled "Food security warning, nutrition and poverty situation and development of the food system," was organised by the Food Rights Bangladesh Network and the WAVE Foundation.

Professor Dr Saima Haque Bidisha of the Department of Economics at the University of Dhaka told the discussion that when food prices rise, many families are forced to sell assets or take loans to meet their needs. This has long-term effects, and people can fall into poverty anew in this way.

She said families with children and elderly members, and families dependent on daily-wage income, are at greater risk. Special measures are needed for these families.

Professor Bidisha added that, considering the overall situation, transparency must be ensured in the Trading Corporation of Bangladesh (TCB) programme alongside increasing its allocation. Increasing food assistance, especially for the urban poor, is urgent.

Speakers at the discussion stressed viewing food security not merely as a matter of food supply but in connection with people's ability to buy food. In their view, even if food products are available in the market, food security is not ensured if people's income and purchasing power fall. Assistance programmes therefore need to be run taking into account the real needs of poor and at-risk populations.

In his chair's speech, Mohsin Ali, general secretary of Food Rights Bangladesh and executive director of the WAVE Foundation, said farmers involved in food production and selling also often do not get enough food. Farmers produce and sell, but their livelihoods have no guarantee. Agriculture, energy and social security issues also need to be considered to ensure the right to food.

Dr A K Enamul Haque, director general of the Bangladesh Institute of Development Studies (BIDS), said both access to food and its availability are important for food security. Effective initiatives are needed to keep the food supply system intact, reduce the cost of agricultural production and prevent food adulteration, while people's income and employment situation must also be considered.

Economist and political analyst Professor Dr M M Akash said there is a risk of people's incomes falling and prices of daily essentials rising due to the economic slowdown and inflation. In this situation, ensuring balanced food for everyone is urgent. He also stressed taking necessary steps, including land reform, to ensure food rights.

Also speaking at the discussion were Malte Schumelfeder, head of programmes at Welthungerhilfe Bangladesh, and Tania Sharmin, senior adviser on child poverty and economic resilience at Save the Children in Bangladesh. They stressed the impact of climate change, children's nutrition and taking social protection programmes according to the needs of poor populations.