Aman procurement drive suffers setback due to price mismatch
Friday, 8 January 2010
S M Jahangir
The government's current 'Aman' procurement drive is slowing down due to marked difference between the official and open market prices.
"Unlike that of last Boro season, the local suppliers are showing poor response to the government's ongoing Aman purchase offer," a senior food and disaster management ministry official said Wednesday.
The government was able to buy only 1165 tonnes of rice and 22 tonnes of paddy until January 4 since the launch of its 0.3 million tonnes of Aman collection programme in December 7 last, officials said.
Both officials and field-level sources said the open market price of paddy is at least Tk 50 per maund higher than that of the government fixed rates.
The government has fixed the paddy price at Tk 14 per kg or Tk 560 per maund while it is selling between
Tk 600 and Tk 630 per maund at the growers' level.
Like paddy, the official purchase rate of rice is also considerably lower than that of its open market price, they mentioned.
The price of coarse rice is varying between Tk 920 and Tk 1000 per maund in the open market while it has been fixed at Tk 22 per kg or Tk 880 per maund under the government's Aman collection drive, they added.
"Due to the price variation, millers are reluctant to supply rice to the government, and rather preferring selling the item in the open market," said an official.
Even after extending the timeframe for signing purchase deals with local rice millers by 10 days until December 10 in order to boost its food-grain collection, the authorities has failed to get any positive response from the rice suppliers, he admitted.
Given the present situation, the officials concerned cast doubt over a drastic shortfall in the Aman purchase target unless the official rates were not readjusted with the open market prices.
Apart from the millers' poor response, the government's current move to collect at least 40 per cent of the targeted paddy directly from the farmers is also facing a setback mainly because of some technical problems coupled with its higher market prices, sources said.
The government set the targets of purchasing 0.2 million tonnes of rice and 0.15 million tonnes of paddy under its current Aman procurement scheme.
It, however, took an unprecedented decision to purchase about 40 per cent of the targeted paddy directly from growers with a view to ensuring a price support for the rice farmers.
Following the decision, the rice millers concerned are supposed to buy the said portion of paddy from the farmers but the decision could not be implemented accordingly due to lack of necessary manpower and other logistic support for the initiative, they mentioned.
The government's current 'Aman' procurement drive is slowing down due to marked difference between the official and open market prices.
"Unlike that of last Boro season, the local suppliers are showing poor response to the government's ongoing Aman purchase offer," a senior food and disaster management ministry official said Wednesday.
The government was able to buy only 1165 tonnes of rice and 22 tonnes of paddy until January 4 since the launch of its 0.3 million tonnes of Aman collection programme in December 7 last, officials said.
Both officials and field-level sources said the open market price of paddy is at least Tk 50 per maund higher than that of the government fixed rates.
The government has fixed the paddy price at Tk 14 per kg or Tk 560 per maund while it is selling between
Tk 600 and Tk 630 per maund at the growers' level.
Like paddy, the official purchase rate of rice is also considerably lower than that of its open market price, they mentioned.
The price of coarse rice is varying between Tk 920 and Tk 1000 per maund in the open market while it has been fixed at Tk 22 per kg or Tk 880 per maund under the government's Aman collection drive, they added.
"Due to the price variation, millers are reluctant to supply rice to the government, and rather preferring selling the item in the open market," said an official.
Even after extending the timeframe for signing purchase deals with local rice millers by 10 days until December 10 in order to boost its food-grain collection, the authorities has failed to get any positive response from the rice suppliers, he admitted.
Given the present situation, the officials concerned cast doubt over a drastic shortfall in the Aman purchase target unless the official rates were not readjusted with the open market prices.
Apart from the millers' poor response, the government's current move to collect at least 40 per cent of the targeted paddy directly from the farmers is also facing a setback mainly because of some technical problems coupled with its higher market prices, sources said.
The government set the targets of purchasing 0.2 million tonnes of rice and 0.15 million tonnes of paddy under its current Aman procurement scheme.
It, however, took an unprecedented decision to purchase about 40 per cent of the targeted paddy directly from growers with a view to ensuring a price support for the rice farmers.
Following the decision, the rice millers concerned are supposed to buy the said portion of paddy from the farmers but the decision could not be implemented accordingly due to lack of necessary manpower and other logistic support for the initiative, they mentioned.