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Dhaka: Rising food prices could force authorities to prolong a state of emergency, the London-based Economic Intelligence Unit (EIU) said.
"Preparations for the [year-end] parliamentary polls could be hampered by mounting discontent over food prices and it could prolong the state of emergency," an EIU Country Report for May said.
"A mounting discontent ... could lead to widespread protests during the early part of 2008-09 [July-June] fiscal year," the report issued on Thursday said.
Garment workers in the capital, Dhaka, defied the state of emergency in April by striking to demand higher wages to cover the cost of rising food prices, the report said.
The situation is unlikely to improve over the short term, despite reports of a bumper rice harvest, and further demonstrations are likely, which will test the caretaker government's ability to govern the country, it said.
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