Dhaka street vendor with chickens The bird flu epidemic has spread to over half of Bangladesh's 64 districts, in what officials say is a major blow to the country's poultry industry.
They say that thousands of birds have had to be slaughtered in recent days, threatening the livelihoods of millions of people and driving up food prices.
Experts say the problem has been worsened by official neglect.
The H5N1 strain of bird flu is regarded as highly pathogenic and can also cause disease and death in humans.
Officials in the Indian state of West Bengal - which neighbours Bangladesh - said that the virus has been detected in 13 of the state's 19 districts and that more than 2.5 million birds would be culled.
But so far no cases of human infection have been reported either in India or Bangladesh.
Bird flu has also been reported recently in Pakistan.
Compensation
"Now we are facing a critical situation, as bird flu struck at a time when commodity prices from rice, flour to milk powder and edible oil had already nearly doubled," Bangladesh government employee Shahedul Alam told the Reuters news agency.
West Bengal's bird flu battle
An affected poultry in West Bengal
Correspondents say that chicken prices in markets in Dhaka have dropped by 25% over the past two weeks, while the price of eggs has fallen by 20% or more.
Officials on Monday said that the virus has spread to three more districts in the country - in the south and west - taking the number affected to 37.
- IT'S IN PAKISTAN, BANGLADESH AND INDIA - AND NOT UNDER CONTROL.
- IT'S GETTING WORSE - AND IT'S ONLY GETTING MORE LIKELY TO MAKE THE JUMP TO A FORM MORE READILY H2H.
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