Govt announces major food aid for urban poor

---

FE Report
The government Saturday announced a major expansion of subsidized food sale in the capital Dhaka amid escalating prices of main staple rice in the market.
Commerce Adviser Hossain Zillur Rahman said the government would increase open market sale (OMS) of rice from 350 tonnes a day to 1500 tonnes to ease the price pressure on millions of urban poor.
"We will make an announcement in this regard by March," Zillur told a press briefing.
Main staple rice would be sold at a subsidized rate of Tk 25 a kilogram at the OMS outlets, which is at least 25 per cent less than its current market price.
"The government has noticed that present food allocation is not sufficient for vulnerable group in the urban areas. But they are suffering most due to the price escalation," he said.
The government is taking the initiative as a short-term measure to keep commodity prices at a tolerable level, he said, adding the OMS would continue until late April, when rice from Boro harvest is set to hit the local market.
The commerce adviser made the comments, after meeting with economists and state agencies involved in price monitoring.
Zillur admitted that urban poor, whose real income has dipped due to soaring food prices in the recent months, are less covered in government's food programme compared to rural poor.
"We are planning to open new OMS outlets at the localities where the target group lives," he said, adding limited and fixed income people like labour, garments workers, low-paid government officials would be the main beneficiaries.
His announcement came days after former finance adviser Akbar Ali Khan said a 'silent famine' is going on in the country as tens of millions of people are struggling to buy daily food needs.
Another ex-adviser and top economist, Wahiduddin Mahmud, last week said urban poor were the hardest hit, as they don't grow food and their income saw any increase since commodity prices began to escalate from middle of last year.
Last month, Bangladesh Garments Manufacturers and Exporters Association (BGMEA) also demanded subsidized food for its over 2.5 million workers, saying they were the worst hit in the food price hikes.
BGMEA leaders warned that a recent boom in garments exports could be halted if the workers, majority of whom earn as low as Tk 2000, don't have easy access to cheap food.
Zillur said the government has also been assessing operation details of OMS activities, as it seeks to expand the food programme up to the union level.
Presently, OMS outlets operate only at district and Upazila towns.
"We have received proposals on ensuring food security from cross section of people including grass roots level," he said.
The government has also planned to distribute potato under its vulnerable group feeding (VGF) programme, along with rice, to ease pressure on the main staple and to make maximum use of its huge production this year.
He said proper pricing of Boro rice should be ensured, otherwise farmers might feel discouraged to plant paddy in the next Aman season.
The adviser also said the government is considering raising its food storage capacity, which is now around 1.4 million tonnes.
A number of storage facilities of Bangladesh Agriculture Development Corporation (BADC) have remained unused, which would be repaired immediately, he added.
Zilur said price of edible oil has stablised at the wholesale level, "although retail market has yet to reflect it."
Bangladesh Rifles chief Major General Shakil Ahmed said prices of lentil would be dearer in the near future, as it has been gradually becoming rare in the international market.
He, however, assured that there would be no supply shortage of rice. The BDR, which is tasked to sell commodities at a low rate, is also importing another 0.1 million tonnes of rice.
Rahman said almost 70 per cent people affected by last November's cyclone and 40 per cent in non-cyclone affected area are now under government's VGF programme.