Project Paper
Project Paper
on
Submitted by
Md Iztehad Hossain
ID: 19141017
Batch: 2019
This Project paper is supported by the Bangladesh University of Professionals (BUP). First, I
want to thank Almighty Allah for letting me finish this project paper smoothly. I also thank my
honorable supervisor Md. Emran Hasan for providing me with proper guidelines to conduct the
project paperwork-related research & other necessary guidelines throughout the period. His
comments and assistance significantly improved the overall outcome of this study.
I also express my gratitude to all the respondents who participated in my focus group discussions
and shared their valuable insights needed for this paper. With their response and cooperation, this
paper was completed.
I want to show my gratitude to the reviewers for their insights too. I am immensely grateful for
their comments on an earlier version of the manuscript, although any errors are my own and
should not taint the reputations of those esteemed persons.
Lastly, I would like to express my gratitude to my classmates, friends, and family members for
their constant support.
3
Declaration of Originality
I hereby declare that the project paper titled “Food Price Hike and Consumption Pattern: A case
study on the students at Bangladesh University of Professionals” has been carried out under the
supervision of Md. Emran Hasan, Assistant Professor, Department of Economics, Faculty of Arts
and Social Sciences, Bangladesh University of Professionals. I also declare that this paper has
not been submitted in part or whole to any other institution for awarding any other degree.
14 December 2022
-----------------------------------
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Department of Economics
Faculty of Arts and Social Sciences
Bangladesh University of Professionals
Supervisor
We, the undersigned, hereby declare that we have read this project paper and we have attended
the project paper defense and evaluation meeting. Therefore, to the best of our knowledge, we
certify that this project paper is satisfactory to the scope and quality of a project paper for the
degree of Bachelor of Social Science, Field of Study: Economics, Bangladesh University of
Professionals.
14 December 2022
-----------------------------------
(Chairman)
-----------------------------------
(Supervisor)
-----------------------------------
(Referee)
5
Abstract
The food market has seen a rising trend in price levels due to rising inflation in Bangladesh.
Change in food price levels undoubtedly impact the daily lives of everyone. This paper aims to
observe the overall situation or the effect of food price hikes on the food consumption patterns of
the students at Bangladesh University of Professionals. The students are reached through focus
group discussions conducted online. However, the study is confined only to the Bangladesh
University of Professionals (BUP) students. The study also observes how the rising price levels
affect the students’ daily life, i.e., financially, physically, or psychologically. Most of the students
are directly affected by the price levels, and it is anticipated that their lives are getting
significantly affected by this situation.
Keywords
Food, students, price, price hike, inflation, consumption, cafeteria, budget, FGD.
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Table of Contents
Acknowledgments..........................................................................................................................iii
Declaration of Originality...............................................................................................................iv
Abstract...........................................................................................................................................vi
List of Tables................................................................................................................................viii
List of Acronyms............................................................................................................................ix
Introduction......................................................................................................................................1
Literature review..............................................................................................................................2
Research gap................................................................................................................................3
Objective of the study......................................................................................................................4
Broad objective............................................................................................................................4
Specific objective..........................................................................................................................4
Methodology....................................................................................................................................5
Data collection.............................................................................................................................5
Findings and Discussions................................................................................................................7
Economic Impact..........................................................................................................................8
Health Impact.............................................................................................................................10
Impact on daily lifestyle.............................................................................................................11
Psychological Impact.................................................................................................................13
Major Findings..........................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Appendix........................................................................................................................................18
Appendix A: Checklist of queries for the Focus Group Discussions.........................................18
Appendix B: Summary of Focus Group Discussions.................................................................19
Appendix C: Information regarding the respondents.................................................................23
7
List of Tables
Table 1 List of Departments selected for FGDs..............................................................................6
Table 2 Major findings from FGDs...............................................................................................13
8
List of Acronyms
Bangladesh Bureau of Statistics
(BBS)...........................................................................................................................................1
Bangladesh University of Professionals
(BUP)..........................................................................................................................................iii
Focus Group Discussions
(FGD)...........................................................................................................................................5
United States Dollar
USD..............................................................................................................................................2
University Grant Commission
UGC.............................................................................................................................................1
9
Introduction
The global supply chain disruption caused by the Covid-19 pandemic triggered the recent food
price increase in Bangladesh. The situation escalated by the Russia-Ukraine war, which has
resulted in a reduction in global food supply from these countries and an increase in fuel prices.
Furthermore, the post-pandemic recovery has increased aggregate demand in Bangladesh's
domestic market. Volatile geopolitical situations, supply chain disruptions, and abrupt demand
and supply changes have contributed to food price increases. Furthermore, the recent devaluation
and depreciation of the Taka made food imports more expensive.
The food inflation rate in Bangladesh accelerated to 8.3 percent in June. This rate has reached an
all-time high in the last 8 years. Before this, the highest food inflation rate was recorded at 9.09
percent in May 2014 (BBS, 2022). This spike in food inflation has been reflected in the food
industry in our country. The prices of raw materials have increased; thus, every type of food item
like bakery goods, snacks, or meals has increased significantly. But there isn’t much or any
information on how their food consumption is changing given the current increasing price levels
in the food industry.
Currently, there are around 164 universities in Bangladesh (UGC, 2022). Among them, more
than 50% of universities are in Dhaka. There are thousands of students studying here and they
contribute a large amount to the food industry. A lot of the students must travel a long distance
while getting through massive traffic jams to reach their universities. With 2-5 hours of classes
and the traffic, the students must spend a significant amount of time outside and thus eat outside
foods to get through their day. There are various options available to the students to have their
food outside, such as the university canteen, roadside snack shops, restaurants, bakeries, etc.
They require a certain amount of money every day to have their snacks and lunches. In a middle-
income country where many families are middle- or lower-income, most students have minimal
money to spend on their food. Thus, the price of these foods ought to be a crucial factor behind
the food consumption of these students.
This paper aims to find out the change in food consumption of university students in Dhaka due
to this soaring food inflation. The goal is to examine the consumer reactions to price rises of
1
specific food products and how much their food expenditure has changed in these times. This
may help the concerned authorities to investigate the betterment of the students so that they can
properly have enough food within their affordability.
Literature review
There have been numerous types of research on the food consumption pattern of students and the
effect of price level changes over the years. A cross-sectional study was undertaken among
students of five established Universities in Bangladesh, Dhaka University, Jahangirnagar
University, American International University of Bangladesh, Gono University, and Sher-e-
Bangla Agriculture University. (Nipun et al.,2017) The results showed that even after being
aware of a balanced diet and the hygiene status of takeaway or junk foods, there was a growing
interest among university students in consuming junk foods. According to the findings of this
study, 98.5% of those students consume fast food. In addition, 43.3% of their pocket money was
spent on it. Good taste, quick accessibility, enhanced convenience, and affordability are all major
elements in the popularity of fast food. Approximately 22% of respondents said they ate fast
food four days a week, and more than one-fifth said they ate it every day. Fifty-four percent of
respondents skipped breakfast for a variety of reasons, including class pressure, and instead ate
fast food after class, either from varsity canteens or other fast-food shops. Despite being
adequately aware of the detrimental effects of excessive fast-food intake, 98% of the students
were deeply addicted to it.
Another cross-sectional descriptive study was conducted on the students studying in the first to
fifth year at Prime Medical College, Rangpur. The study was conducted by an interviewer-
administered questionnaire developed by the researchers. It was discovered that 68.3% of
students consumed fast food regularly, with 70.1% being aware of the health risks associated
with their activity. The taste of the meal was the most important reason for eating fast food
(78%), followed by hanging out with friends (21%), free Wi-Fi (13%), recreation (20%), stress
relief (9%), and peer pressure (6%). A noteworthy finding was that 44.1% of participants spent
3000 Taka (36 USD) as monthly pocket money, whereas only 22.4% spent more than 5000 Taka
(60 USD). According to the study, the price or expenditure for goods did not affect fast food
eating habits. (Rizwan et al., 2018)
2
Sarker (2021) conducted a cross-sectional online survey on 100 university students who
consumed street food where the majority were of the age group 20 to 29 years old, male was
58.6% and female were 41.4%. According to the report, 84.8% of these participants spend less
than 200Tk each day on street food. Regarding picking street food, 68% of these participants
prioritize price and quality. The paper stated that street food satisfies most people's needs due to
its low cost and quick availability.
A descriptive analysis to determine the fast-food consumption behavior of the students from
Universiti Sultan Zainal Abidin students showed that most respondents who consumed fast food
were 77.5% female students compared to 22.5% male students. The behavior of fast-food
ingestion is also influenced by a moderate price factor of about 72%. This suggests that 93% of
the respondents are fond of fast food. Additionally, only 5% of the respondents bothered to
check the nutrition labels before purchasing fast food. The results also illustrate that most
respondents, rated as high as 99%, often consume fast food as frequently as 1-5 times a week.
(Syafiqah et al., 2018)
Research gap
All the available literature provides insight into the food consumption pattern of students or the
impact of food prices on food consumption. But none of these signifies the change in
consumption pattern due to price changes. Thus, this paper aims to point out that effect through
this research.
3
Objective of the study
Broad objective
The broad objective of this paper is to observe the change in the food consumption pattern of
university students in Dhaka due to the current food inflation. The aim is to reach out to
university students and observe their reactions to this current food inflation.
Specific objective
To examine the change in food consumption patterns due to food price hikes.
To observe the change in consumption of some everyday food items due to the price change.
To observe the change in food expenditure of students during these times.
To observe any changes in physical or psychological health due to changes in food
consumption.
To observe any changes in overall lifestyle due to the rising food price levels.
4
Methodology
This research focuses on the qualitative analysis of the change in food consumption of
Bangladesh University of Professionals (BUP) students due to the recent surge in price levels.
So, a qualitative method was chosen to seek possible answers to the research and knowledge of
the research subjects. The primary tool used for the qualitative study in this research is Focus
Group Discussions (FGD). In this study, the main aim was to find out the effects of price
changes on food consumption and how that affects different aspects of a student’s everyday life.
The aspects focused on here are as – i) Economic impact, ii) Physical impact, iii) Psychological
impact, etc. There are/might be other aspects that are affected too but the primary focus was on
these three aspects due to the availability of time and other resources. All the FGD information
was recorded and noted by the author and analyzed thoroughly.
Data collection
FGD was chosen as an approach because it attempts to observe participants' attitudes and
expectations and their experiences and practices during the interaction process. The approach is
based on the premise that the community's processes were triggered during the FGD and assists
in describing and explaining mutual information between classes and groups that would
otherwise be difficult to obtain through various individual interviews. Before taking the FGDs,
the author asked one student from each department to gather 5 students and set a time for an
FGD. Upon discussion, they set a time and medium for the FGDs. Zoom and Google meet were
used to conduct the FGDs online for the convenience of students.
During the FGDs, the author introduced himself to the discussants and explained the purpose and
time frame of the FGDs. Then the participants introduced themselves to one another. He then
asked permission to take notes and make recordings and explained how he would use the data
collected from the session. The participants complied but asked that the recordings and
statements not be shared with anyone else, and the author agreed. It was explicitly stated that no
names would be mentioned in any documents. It was also stated that participants were free to
leave the session at any time if they felt uneasy. As a result, the author verbally assured informed
consent. The discussion began after thanking everyone. Finally, the author gave participants time
5
to clear up any queries they had, and briefly explained how the collected data would be used.
Most of the questions were open-ended. Everyone used both Bangla and English as the
conversation language. This approach, however, does not assume that all information is equally
distributed among a studied group or that there is a standard homogeneous, underlying
information. Instead, an FGD allows the investigator to request both the participants' shared
narrative and their differences in terms of perspectives and viewpoints.
8 FGD sessions were conducted with the participation of students from 8 departments in this
method.
6
Findings and Discussions
The COVID-19 and the ongoing war between Russia and Ukraine have had a huge impact on,
and have brought about changes in, the way of life for everyone, including the students. As a
result of the significant increase in food costs, the students, particularly those who come from
households with middle-class or lower incomes, are in a very precarious position. Because they
are a student, they are required to spend a considerable amount of time away from home, either
in their classes or when traveling to and from those classes. Because it is impossible for everyone
to bring their own food to school, the vast majority of students are forced to buy their meals from
the university cafeteria or from local businesses like restaurants, hotels, and bakeries. Therefore,
fluctuations in prices make the student's day-to-day living more difficult.
The Focus Group Discussions (FGDs) consisted of students from different departments of BUP
studying in different semesters of their undergraduate curriculum. These students come from a
wide variety of socioeconomic origins and live in a variety of different ways. As a direct
consequence of this, the effects of the price changes were not equal across students. 25 of the 40
students who were chosen to participate in the study say that they live with their families, while
the remaining 15 students live in residential halls or hostels. Those who live with their family are
typically required to think about eating when they are outside. However, students who live in
dormitories are responsible for planning and preparing their own meals during the day. As a
direct consequence of this, the rise in expenditures may be more significant for students who live
on their own as opposed to those who live with their families. Students who live at home with
their families have the advantage of being able to bring food from home to eat during their class
breaks. This can potentially assist these students to save money that would have been spent on
meals. According to the findings of the FGDs, about 9 students out of the 25 who live with their
families have started bringing their own meals to school as a response to the recent price rise in
an effort to avoid spending additional money. On the other side, it can be rather challenging for
students who live in dorms or other communal living arrangements to cook and transport
individual meals during class breaks. Additionally, the students have varying degrees of monthly
income or allowances, which may result in varying amounts of expenditure or a shift in
consumption pattern. Students who are able to make more money on their own or have access to
7
more pocket money are less likely to see large shifts in their consumption patterns because they
are better able to afford it. As a consequence of this, the aspect concerning the income/allowance
is likewise quite important.
In the following section, common findings about the impact of price level change are discussed -
Economic Impact
The vast majority of college students have a tendency to stick to a stringent allotment or
spending plan in order to cover their day-to-day costs. Consuming food represents one of the
most significant costs that a student incurs on a daily basis. The overall inflation for the raw
materials of food has had a significant impact on the food business as the costs of practically
every sort of food item have increased by at least 10 and up to over 60% in comparison to this
unprecedented spike in prices.
Because of this, it is now more difficult than ever before for students to maintain their budgets.
They are required to pay an additional amount of money for each meal that they take in. The
pupils are put in a difficult position as a result of these additional expenditures. Either they need
to cut their consumption or increase their allowance if they want to keep the balance.
8
In either case, they are going to end up being the ones who suffer. It is difficult for the majority
of students, particularly those who come from households with middle- or lower-incomes, to
immediately change or increase their allowance. Because of the recent rise in the cost of living,
the vast majority of students will need to cut back on the amount of food they normally consume.
Every one of the respondents mentioned that they had experienced an anomaly of price in the
current market, and as a result, it is making it difficult for them to keep their budget in check.
They are forced to find more funding elsewhere, which is difficult given the stagnant growth in
the average real income across the nation. Because of this, most families have a hard time giving
their kids any kind of extra money.
Even if it is conceivable, it is generally believed that the slight increase in the allowance ought to
be significantly higher in order to adequately account for the shifts in price. In spite of the fact
that they are eating less food than in the past, the students still require assistance in order to keep
their spending at the same level as previously.
Health Impact
The student's health has suffered as a direct result of the shift in their dietary habits. The price of
food is a fairly reliable predictor of the nutritional content of a particular food product. The
quality of the food, particularly in terms of its nutritional value, decreases as the price increases.
In recent times, there has been a general decline in the quality of the food that has been
9
accompanied by a rise in price. With the same amount of money, they had before, students are
unable to purchase enough food to meet their nutritional needs. Due to the high cost, they have
no choice but to pursue less expensive alternatives and must therefore make do with food that is
of worse quality. This results in a wide range of different health problems. Because of the decline
in nutritional value, some people will experience mild malnutrition. The students asserted that
decreased meal consumption results in greater levels of weariness among the students.
Consuming inexpensive or fried snacks in place of lunch or meals might lead to acidity and other
digestive disorders.
“Most of the time, I have to eat fried snacks like singara, egg chop etc. to manage my
hunger. But as I am skipping lunch with these snack items, I have started to face gastric
issues recently.”
Also, hygiene is a significant issue. Because most students get their meals from neighborhood
restaurants or shops, where the ingredients are often low quality and not adequately sterilized,
this contributes to the spread of a wide variety of illnesses.
The increased cost of food has had a ripple effect on the students' lifestyles in general. The vast
majority of students are now required to spend more money while maintaining the same
allowance or income level. As a consequence of this, they have been unable to set aside much or
any money for use in other areas. Students will typically reduce their overall spending in order to
stretch the money they receive from their allowances to cover a wider variety of costs. They
budget the money they save from their allowance to cover the costs of their mode of
transportation or the items that they find appealing to purchase. But that trend has been reversed
because of the price increase.
10
Another student from Development Studies explained:
“I used to go hang out with my friends once a week or two. But recently, I have stopped
doing so as I can barely save any money from my daily expenditures to go somewhere
to have fun.”
Even though doing so would make their life easier in general, students are unable to save enough
money to pay for these additional expenses on their own. They are unable to make as frequent
use of public transit as they once did because the tolls have also increased in price in response to
the growing cost of food.
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A student named Araf (Pseudonym) from International Relations shared:
“The price increase has affected everywhere. The price level for every good and
service has increased. Rickshaw fares have increased a lot. Previously the fare was
within a limit where I could easily get a rickshaw to come to University from Mirpur-
12. But nowadays I prefer to walk if I’m not in a hurry. But walking this much distance
makes me exhausted.”
Due to the fact that they do not have many dollars left in their possession, they are unable to
purchase a device or accessories that they might like. Because of this, many students are forced
to spend money that they had previously saved in order to pay for the essential food expenses.
This is due to the fact that their monthly allowance has not increased in a manner that is
comparable to the rise in the cost of food.
12
Psychological Impact
The student's mental health has deteriorated as a direct result of the recent events surrounding the
price increases. As was said earlier, the shift in pricing has had a substantial influence on the
students' financial condition, as well as their physical health and their day-to-day lives. The
cumulative effect of these effects has an impact on the psychological state of them. Their mental
health has been greatly impacted as a direct result of the stress that they must endure while
managing their costs. Students from families with incomes falling between the upper and lower
middle classes have unique challenges, particularly toward the end of the month. They barely
have enough money to cover their costs, and they continue to struggle even as those costs rise.
Due to the decreases in expenses, the majority of them are required to exclude any additional
expenses or hobbies. In addition, the challenges they face with their health are having an impact
on their academic performance. It is inevitable that this will cause the children to feel frustrated.
“Since I skip a few meals now and then, I often feel tired during afternoon classes. I
cannot focus on those classes, and thus I lag in my studies. This makes me frustrated.”
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Major Findings
The amount of money students spends on food each day has gone up by
eating habits.
options.
Students are having health problems because they don't eat well and in
the right amounts. They are suffering from health issues due to an
14
Conclusion
Since the beginning of this year, the sharp increase in the cost of food has been one of the most
contentious issues facing our nation. And it doesn't look like it's going to stop any time soon
because of the persistent instability that exists in the global market. This is worrisome for the
student population of our nation because they are currently contending with a significant amount
of opposition in these times. People who come from households with middle-class or lower
incomes are having a harder time of it lately. If the current predicament is allowed to persist, the
students are likely to be put through even more anguish in the days to come. Students are going
to be an extremely valuable resource for the country in the not-too-distant future, thus the
authority at the institution should take care of this issue. If the student population is
disadvantaged, it will ultimately have a negative impact on the entire nation. As a result, the
authorities of the institution, along with the government, ought to concentrate on capping the
prices at a consistent level. The administration of the institution ought to make certain that the
food vendors in the cafeteria do not mark up the costs of their wares to an unreasonable degree.
In addition to this, they are responsible for ensuring that the food's quality is properly preserved.
If students are required to constantly consider their spending habits and the need to make
lifestyle adjustments, it is inevitable that they would become distracted from their studies, which
is ultimately harmful for them. Therefore, the situation calls for the appropriate attention to be
paid in order to resolve the issues as quickly as feasible.
15
References
Islam, Dr. Nazrul & Ullah, G. M. (2010). Factors affecting consumers' preferences on fast
food items in Bangladesh. Journal of Applied Business Research. 26. 131-146.
Nipun, T., Debnath, D., Miah, M., Kabir, A., & Hossain, M. (2022). Bangladeshi Student's
Standpoint on Junk Food Consumption and Social Behaviour. IOSR Journal of
Pharmacy and Biological Sciences. 12. 68-75.
Al-Mamun, A., Debnath, P., Siddika, F., & Islam, M. J. (2019). Knowledge of food habit and
other daily habit are the determinants of health status: A study among the students of
Chattogram regions. Asian Journal of Health Sciences, 5(2), 10-10.
Islam, Dr. Nazrul & Ullah, G. M. (2010). Factors affecting consumers' preferences on fast
food items in Bangladesh. Journal of Applied Business Research. 26. 131-146.
Al-Aklabi, Nouf & Al-Dowsari, Wejdan & Andrioti, Despena. (2016). Investigating the
Correlation between Food Prices and University Students Awareness of the Effects of
Junk Food Consumption on their Health. International Journal of Community &
Family Medicine. 1. 10.15344/2456-3498/2016/114.
Igbedioh, S., & Aderiye, J. (2010). Increase in food prices and food consumption pattern in
some university students in Makurdi, Nigeria. Ecology of Food and Nutrition. 31. 219-
226. 10.1080/03670244.1994.9991363.
16
A.S.M. Anwarul, Huq & Mohamed Arshad, Fatimah. (2010). Demand Elasticities for
Different Food Items in Bangladesh. Journal of Applied Sciences. 10.
10.3923/jas.2010.2369.2378.
Al-Aklabi, N. & Al-Dowsari, W. & Andrioti, D. (2016). Investigating the Correlation between
Food Prices and University Students Awareness of the Effects of Junk Food
Consumption on their Health. International Journal of Community & Family
Medicine. 1. 10.15344/2456-3498/2016/114.
Syafiqah, I. N., Normala, R., Azlini, C., Lukman, Z. M., & Kamal, M. Y. (2018). Fast Food
Consumption Behavior among University Students. Age (years), 18(19), 10.
17
Appendix
18
Appendix B: Summary of Focus Group Discussions
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3 Department: Development Studies According to one of the respondents,
Number of respondents: 5 the rising price levels is due to the
Rapport: Author aftereffects of the COVID-19
Mode of Conduct: Zoom economic shock.
Every respondent stated that they
could not maintain the expenses with
their previous allowance and thus
are forced to increase their
allowance even though their income
or their family has not increased as
much.
A respondent informed that in
general she now has to spend at least
25-30 taka more on a daily basis for
food.
All the respondents heavily agreed
that there have been significant
changes in their food pattern as the
price keeps increasing.
20
Rapport: Author prices in comparison to pre-covid
Mode of Conduct: Google Meet times.
They mentioned that they had to
increase their allowances
considering the recent price hike but
were still unable to cope with the
rising price trends.
When asked about other factors than
price rise being an issue in food
consumption, all 5 respondents
unanimously agreed that quality was
an important factor. As the raw
material prices are going up by a lot,
the overall food quality has gone
down heavily even after the price
changes.
It was noted that the price hike had
induced the students to skip heavy
meals and move towards lighter
snacks or food.
The students also shared that this
change in pattern is also impacting
their health level.
6 Department: English The first respondent stated that the
Number of respondents: 5 COVID-19 pandemic increased
Rapport: Author market prices, leading to the
Mode of Conduct: Zoom eventual price rise in the food
market.
Everyone said they had to increase
their allowances to match the
increased prices.
In response to a change in
expenditure, everyone stated that
their expenditures increased by 20-
35 taka on a daily basis.
They also mentioned about changes
in their food consumption pattern.
21
7 Department: Economics All the respondents stated they had
Number of respondents: 5 noticed significant price changes.
Rapport: Author Two of them had to increase their
Mode of Conduct: Google Meet allowance to maintain their
expenditures, while the other three
focused on cutting off costs to
maintain their existing allowance.
All of them informed that they had
to change their food consumption
pattern and switch to lighter and
cheaper meals.
One respondent mentioned that he
had health issues due to skipping
meals often.
8 Department: Finance & Banking They all agreed that food prices were
Number of respondents: on the rise.
Rapport: Author Four respondents reported a raise in
Mode of Conduct: Google Meet their allowance to keep up with
rising costs. While one claimed to
have a comparable budget and were
making do with what they had.
The respondents disclosed that this
shift in routine is having an effect on
both their mental and physical well-
being.
22
Appendix C: Information regarding the respondents
Total Respondent: 40
No. of Male: 26
No. of Female: 14
Lives with their families: 25
Lives in dormitories: 15
Average allowance: 2500-4000 Taka/Month
23