Bangladesh Food System Vulnerable to Energy Price Shocks

Bangladesh's recent fertiliser shortage has exposed a larger vulnerability in its food system.

The country's reliance on global energy markets through fertiliser, irrigation, transport, and biofuels makes it increasingly susceptible to shocks from external events like rising energy prices.

In July 2026, the FAO Food Price Index reached its highest level in three years at 131.1 points, while the World Bank projects a more than 30% rise in fertiliser prices due to disruptions in energy and fertiliser markets.

Natural gas is both an energy source and a feedstock for urea, making higher gas costs directly impact fertiliser-production costs.