37% low-income families sometimes skip a meal: Sanem

As inflation bites into people's earnings, around 37% low-income families said they are sometimes forced to skip a meal, according to a survey by the South Asian Network on Economic Modeling (Sanem).

Releasing the survey report at the Brac Centre in the capital yesterday, Sanem said 71% of families who participated in the study think they are eating less food than they need.

According to the research organisation, price hike of goods in the international market, devaluation of the taka and mismanagement of markets are responsible for the situation.

Sanem said they conducted the survey during 9-18 March this year among 1,600 households across the country to bring the issues of food security and inflation burden on poor people in front of the policymakers.

According to the survey, the country's annual inflation rate rose from 6.17% in February 2022 to 8.78% in February 2023. In some months during this period, it went above 9%.

There are concerns that the actual inflation rate might be higher for the low-income households, says the survey.

In this situation, the monthly average cost of these 1,600 families increased by Tk1,689 or 13.1% in the last six months till February this year. But the average income during the period fell by Tk5 each family, found the survey.

Due to inflation pressure, 90.2% of the survey participants said they are changing food habits while 74% said they are borrowing as they are not able to reduce expenses.

Some 45% low-income people borrow from microcredit institutions. After that they borrow from friends, neighbours and relatives.

Of the households surveyed, 90% said inflationary pressures have forced them to change their eating habits. Of these, 37.08% reduced consumption of rice, 45.53% pulses and 96% reduced meat consumption. For example, households that used to eat chicken 4 times a month even six months ago now eat chicken twice a month. 88% of households reduced fish consumption. Apart from this, 77% households have reduced the consumption of eggs and 81% households have reduced the consumption of edible oil.

Low-income people have also reduced spending on non-food goods and services, especially for clothing, education and health. According to the survey data, the city's low-income families are spending more on food. Rural households have reduced spending more on non-food items.

Sanem's survey revealed that there is more concern among low-income families than before about whether there is food at home. 37% families said they now sometimes have to skip a meal and 71% households feel they are eating less food than they need.

Some 56% households surveyed think their situation will not change in the next six months and 85% households think they will need to borrow more in the next 6 months. And 41% families say they may have to rely on begging or charity in the future.

Sanem also says 19% households said they may have to engage their children to work in the future. And 24% families think their children may have to stop studying to cut costs. Many are also talking about marrying the girl child quickly.

"We could tell how low earners are doing even without the survey. However, this is an attempt to present the issues to the policymakers as a matter of professional responsibility," SANEM Executive Director Dr Selim Raihan said at the press conference.

"Many middle income families are also under a lot of stress. Their earnings have dropped and steps should be taken for them urgently," he said, adding that global problems are not the only reason for high inflation.

"Internal economic mismanagement is also responsible. There are imperfections in the market management of our country. We have seen the influence of traders in the last few months. The government should be strict in controlling the influential businessmen. The market should be regulated with the help of business organisations," the Sanem executive director said.

"Many have taken loans as a way to get by under the circumstances. However, the interest rate on these loans is very high. These people can fall into the vicious cycle of interest," Sanem Research Director Dr Sayema Haque Bidisha said.

"In our country, insurance benefits are less. Especially in health and education, these people will invest less. Overall, these issues will undermine our efforts to meet SDG goals," she added.

The survey says 40% families who participated are covered by the government's social security programme. Most of them are Trading Corporation of Bangladesh (TCB) card holders.  However, the TCB is more active in the urban area than rural.

In response to the question whether the government initiative is enough, most respondents said it was not.

To overcome the situation, Sanem thinks the issue of food security of poor people should get the most importance now besides increasing production in the country.

The research organisation also suggested the government to be more strategic in importing food and at the same time demanded to increase the scope of the social security programme.