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Aims to stabilise prices, build stocks

The government yesterday decided to import 4 lakh tonnes of rice in its efforts to curb the spike in prices of the staple and build adequate stocks in advance so that it can intervene in the market in case of volatility originating from crop losses due to natural disasters like floods in the coming months.

The decision came at a meeting of the Food Planning and Monitoring Committee (FPMC).

At the meeting, the panel under the food ministry also decided to request the commerce ministry to take necessary steps to facilitate the import of another 5 lakh metric tonnes of rice by the private sector, said Food Adviser Ali Imam Majumder.

"Last year, when the floods occurred, the government was unable to make adequate preparations. So, we have initiated the process of advance procurement to buy rice through international tenders," he added.

Last year, Bangladesh witnessed repeated floods, mainly in August and September, which damaged Aus and Aman rice crops and pushed up prices of the grain. The production estimate by the Bangladesh Bureau of Statistics (BBS) released later indicates that production of rice from both seasons declined.

The latest decision comes at a time when rice prices have been increasing despite the recent Boro harvest and continuing imports of the staple grain.

The harvest of Boro rice, which accounts for more than half of the total annual rice production, was completed in June. The BBS has not released its estimate of rice production during the Boro season.

However, in March, the US Department of Agriculture forecast 2.05 crore tonnes of grain from Boro, as there had been no natural disasters. Based on the USDA forecast, Bangladesh's rice output fell by 2 percent year on year to 3.98 crore tonnes, as the previous two crops—Aus and Aman—suffered due to heavy rains and floods.

During the same year, the public and private sectors imported 13 lakh tonnes, according to the food ministry data.

For the current fiscal year, the interim government has set a target to import 9 lakh tonnes of rice, up from actual imports of 8.35 lakh tonnes the previous year.

After the meeting, Finance Adviser Salehuddin Ahmed said rice prices in the international market are falling, and the government is making efforts — by any means necessary — to stabilise domestic prices. "Ups and downs are inevitable," he said.

Food Adviser Majumder said that, currently, the country's food reserves are satisfactory, but to ensure food security and in anticipation of possible floods, the government is making advance preparations.

As of yesterday, total grain reserves, comprising rice, paddy, and wheat, stood at 18.77 lakh tonnes, of which rice accounted for 15.53 lakh tonnes, according to food ministry data.

The initiative has also been taken to support the government's increased food distribution target of 36.6 lakh tonnes for the current fiscal year.

Starting this August, a six-month food-friendly programme will be launched, under which 55 lakh families will receive 30 kilograms of rice each at Tk 15 per kilogram.

"This year, the programme will run for four months from August to November. It will be suspended in December and January, and then resume in February and March," the food adviser said.

He added that this initiative will help keep the market stable.

Source : thedailystar