The government has set Tk 36 for procuring seasonal Aman rice per kilogram this year by slashing down Tk 3.0 from last year's rate.
The decision was made at a meeting of the food planning and monitoring unit at the secretariat on Sunday with Food Minister Advocate Qamrul Islam in the chair.
Economists said the 7.7 per cent cut in government purchase prices may cause a further plunge in Aman crop prices, much to the farmers' woe.
Mr Islam disclosed that the government will purchase 0.6 million tonnes of rice from millers. Procurement will begin from December 01 until February 28.
The target may be reviewed to purchase more rice, the minister told the reporters.
Last year, the government purchased 0.45 million tonnes of Aman rice at Tk 39 a kg.
Mr Islam said they cut the procurement price this year as the current market prices of coarse rice are Tk 33-34 a kg in milling areas.
The government has estimated the production cost of Tk 35 for per kg rice, he stated.
However, a recent visit by the FE to southern and northern rice-growing hubs found a substantial drop in Aman paddy prices.
The price slump has hurt the local peasantry who is already struggling with a rise in production costs. Seasonal 'Swarna' and 'BR-11' paddy varieties were selling at Tk 580-650 per maund (40 kilograms) in Khulna, Jashore, Kushtia and Rangpur regions.
The current paddy prices are Tk 120-150 less per maund this season than that of last year, according to the Department of Agricultural Marketing (DAM) data.
Dr Md Asaduzzaman, a professorial fellow at Bangladesh Institute of Development Studies, said paddy prices may further plunge for a cut in Aman procurement price.
The farmers, who have no capacity to store paddy for at least 30 days, would be the ultimate losers, he told the FE.
Mr Asad said the procurement of the staple helps benefit only millers and influential political quarters, not the producers.
The government has imposed above 28 per cent duty on rice import, he pointed out.
The government's agencies concerned should strongly monitor to find out why paddy prices witnessed a reduction this year, he said.
The agriculturist said the fall in prices might discourage farmers to grow rice in next Boro season.
Md Arifur Rahman Apu, head of the Directorate General of Food, told the FE that Aman procurement may cause a rise in paddy prices.
The government purchase price is Tk 2.0-Tk 3.0 per kg higher than that of mainstream markets, he said.
Mr Apu said the government now has a good stock of rice-1.25 million tonnes.
"We're focusing on purchasing rice from domestic sources. We've procured 1.4 million tonnes in Boro season," he added.
The government is expecting Aman output to reach 14.1 million tonnes this year from 13.5 million tonnes last season.
More than 5.65 million hectares of land were brought under farming this year-the acreage is 3.0 per cent higher than last season's, said the Department of Agriculture Extension (DAE).
The DAE's field services wing revealed that 41 per cent of Aman paddy has been harvested as of November 17.
tonmoy.wardad@gmail.com