Bangladesh Food Security Network–Khani has urged the government to reconsider reductions in rice and flour sales targets and subsidy allocations under the Open Market Sale (OMS) programme for the 2026–27 financial year, warning of risks to food security among low-income urban households.
The network expressed concern that reduced access to subsidised staples would increase household expenses at a time of persistent inflation and limited social protection coverage for the urban poor, according to the press release.
Citing media reports on data presented at a meeting of the Parliamentary Standing Committee on the Ministry of Food on 15 October, Khani said this year's OMS sales targets had been set at 240,000 tonnes of rice and 350,000 tonnes of flour.
These compare with actual sales of 304,000 tonnes of rice and 449,000 tonnes of flour in the previous financial year. The new targets represent reductions of approximately 21% and 22%, respectively, amounting to a combined decrease of 163,000 tonnes.
The OMS subsidy allocation has been reduced from Tk4,096 crore to Tk3,411 crore, a decline of approximately 17%. Total food subsidies for the financial year stand at Tk7,973 crore, compared with Tk8,504 crore a year earlier, the network said.
Khani noted that OMS primarily serves low-income urban residents, who have access to relatively few social protection programmes.
Citing the Household Income and Expenditure Survey 2022 and related research, it said the number of urban residents living in poverty had risen from 7.4 million in 2010 to 7.9 million in 2022. The number considered vulnerable increased from 13.3 million to 15.3 million over the same period.
Nearly half of extremely poor households nationwide receive no social protection benefits, with the proportion reaching approximately 64% in urban areas, it added.
The network referred to media reports published on 17 October, the International Day for the Eradication of Poverty, highlighting financial pressures on households.
Citing the Bangladesh Bureau of Statistics' Living Standards Survey 2025, it said 40.19% of households in urban areas and 32.11% in city corporation areas had borrowed money over the preceding year to meet basic living expenses.
Average monthly household income nationally stood at Tk33,513, against expenditure of Tk35,311. City corporation areas recorded the highest average monthly household expenditure, at Tk46,778.
The statement also cited September 2026 inflation of 8.34%, with housing and utilities inflation at 9.81% and transport inflation at 9.46%.
Khani said rice sold under OMS cost Tk30 per kg, compared with market prices of Tk50–55 for coarse rice and Tk56–65 for medium-grade rice.
Households unable to access OMS rice would therefore have to spend at least Tk20–25 more per kg, it said.
Based on the 64,000-tonne reduction in the rice sales target compared with the previous year's sales, Khani estimated that beneficiary households could face a combined additional expense of Tk128–160 crore if they purchased the equivalent quantity at market prices. Including flour would increase that burden further, it added.
The network warned that families might respond by reducing the quantity or nutritional quality of their food, with children, pregnant women and older people particularly vulnerable.
Higher food expenses could also force households to cut spending on education and healthcare or become more dependent on borrowing.
Khani said OMS helped stabilise rice prices in the market. It noted that coarse and medium-grade rice prices in Dhaka had risen by Tk1–2 per kg over the preceding week, warning that reduced government supply could intensify price pressures.
The network welcomed the food ministry's statement that the OMS allocations were not final and that funds were available for additional allocations if needed. However, it said current prices already justified such support.
Khani made four recommendations:
- Maintain rice and flour sales targets and subsidy allocations at least at the previous financial year's levels, with adjustments for inflation.
- Increase OMS sales outlets in city corporation areas, municipalities and industrial zones, particularly in informal settlements and neighbourhoods with large worker populations.
- Strengthen transparency, digital monitoring and complaint resolution at the dealer level.
- Develop a dedicated urban social protection strategy for poor households, informal workers and people displaced by climate impacts, while moving towards an integrated system based on rights.
The network said food was a fundamental human right and that protecting low-income households' food security during an economic slowdown and persistent inflation was essential to sustainable development.
It urged the government and policymakers to reconsider the reductions and strengthen food security programmes.
The statement was signed by Khani Bangladesh President Dr Mohammad Zainul Abedin, Vice President Rezaul Karim Siddique and General Secretary Nurul Alam Masud.