The government will procure 1.75 million tonnes of paddy, rice and wheat combined this year during its Boro procurement drive.
This target is 100,000 tonnes higher than last year's, according to the food ministry on Sunday, as the authorities look to maximise food grain stockpiles amid high international rice prices.
Rice and paddy procurement prices have been increased by Tk 1.0 and Tk 2.0 per kg respectively this year to attract both farmers and millers to participate in the government's grain collection drive. However, the wheat procurement price has been reduced by Tk 3.0 per kg.
The new procurement prices are Tk 32 per kg for paddy, Tk 45 per kg for parboiled rice, Tk 44 per kg for sun-dried (atap) rice and Tk 34 per kg for wheat.
The announcement was made at a meeting of the Food Planning and Monitoring Committee held at the Cabinet Conference Room in the Secretariat.
Food Minister Sadhan Chandra Majumder presided over the meeting, which was also attended by Industries Minister Nurul Mazid Mahmud Humayun, Local Government, Rural Development and Cooperatives Minister Mohammad Tazul Islam, Agriculture Minister Dr Mohammed Abdus Shahid, State Minister for Relief and Disaster Management Mohibur Rahman Mohib, State Minister for Commerce Ahsanul Islam (Titu) and State Minister for Health and Family Welfare Begum Rokeya Sultana, among others.
The food minister announced that the Directorate General of Food will procure 0.5 million tonnes of paddy, 1.1 million tonnes of parboiled rice, 0.1 million tonnes of sun-dried (atap) rice and 50,000 tonnes of wheat during the Boro harvest season 2024, from May 7 to August 31.
The food directorate successfully procured 0.66 million tonnes of rice in the Aman season that ended on March 31 -- exceeding their initial target.
While paddy procurement fell short of expectations in the Aman season, it was offset by higher rice procurement, according to Md Moniruzzman, director of the procurement wing at the directorate.
The official said the asking price for rice in the Boro season is higher than the mill-gate price of coarse rice. "We are confident of achieving the target," he said.
The target is to maximise procurement from domestic sources for safety-net programmes in light of much higher global rice prices, Mr Moniruzzman said, adding that farmers will be encouraged to supply paddy to public warehouses with minimal bureaucratic hurdles.
Md Shamsul Alam, a miller in the country's northern region, told The Financial Express that the paddy harvest will begin in mid-May in the rice-growing hubs.
The price of paddy in May, he said, will be a key factor in determining the success of the procurement drive.
Agribusiness and marketing teacher at the Bangladesh Agricultural University Dr Md Salauddin Palash told the FE that setting the procurement price is always a delicate balancing act.
A higher price, he said, could destabilise consumer markets, while a price that is too low discourages traders and farmers from selling to the government.
Mr Palash recommended that the government be prepared to review prices throughout the season based on market conditions. "The decision to raise the procurement target is commendable in the current volatile global market," he said.
He added that, given the unpredictable weather conditions, the government should also consider encouraging imports to mitigate any possible crop damage.
The government has, since March 21, allowed 80 traders to import over 0.2 million tonnes of rice amid the rising rice prices. However, media reports suggest that importers are yet to open letters of credit (LCs) due to the high cost of rice in the international market.
According to the Food and Agriculture Organization (FAO), rice prices are currently 14 per cent higher than last year.
Importers said the export price of coarse parboiled rice in India is now at least $580 per tonne, which is much higher than the local rates.
The Department of Agricultural Extension (DAE) projects rice production in the ongoing Boro season to exceed 21 million tonnes.
© 2024 - All Rights with The Financial Express
