Warning Over Removal of Preferential Exchange Rate; Rising Costs and Pressure on Food Supply Chain

The removal of the preferential exchange rate has significantly increased input costs and placed heavy pressure on the country’s essential food supply chain.

 

Working capital requirements across the supply chain have increased nearly fivefold, while prices of key inputs such as corn, barley, and soybean meal have surged sharply. A significant portion of private sector funds remains frozen with the government.

A 35–40% decline in poultry production cycles, reduced livestock output, and rising prices of meat and poultry products are direct consequences of this situation, ultimately transferring financial pressure to consumers.

Declining per capita meat consumption and rising food prices indicate that continued trends could further deepen contraction in the food market.