Boro procurement drive lagging behind target
S M Jahangir | Saturday, 14 June 2008
Chief Adviser (CA) Dr. Fakhruddin Ahmed has directed the authorities concerned to gear up the internal foodgrain procurement drive as the current rate of procurement of 'Boro' crop is lagging behind the target, official sources said.
At a recent meeting with senior officials of Ministry of Food and Disaster Management, the CA also asked the food procurement agency for raising the collection of Boro rice to at least 0.8 million tonnes by June 30, they said.
Food and Disaster Management Secretary Molla Wahiduzzamana along with other senior officials of the ministry and the Department of Food was present at the meeting, which was held Wednesday at the CA's office.
The CA issued such directive, taking the current slow pace in the collection of Boro rice into consideration, said an official.
The government has set the targets of procurement at 1.2 million tonnes for rice and 0.3 million tonnes for paddy during the current Boro season. The purchase drive is to continue until August 31, 2008.
But the Department of Food has, so far, collected about 428,000 tonnes of rice, a senior official said, adding the authorities have also signed agreements with millers on procurement of about 622,000 tonnes of rice.
About 425,000 tonnes of rice were collected in the corresponding period of the last Boro procurement drive, said the official.
Identifying a mismatch between the prices fixed for official procurement and those prevailing in the open market as the main reason for the poor collection of Boro rice, the food ministry informed the CA that it had already taken some steps to help boost the rice purchase.
The government has enhanced this year the procurement price of rice by 55 per cent to Tk 28 a kilogram (kg) over the last year's price, taking the prevailing prices of rice into consideration.
The price of Boro paddy has also been increased to Tk 18 per kg from last year's Tk 11 per kg in a bid to help achieve the government's procurement target.
But prices of both rice and paddy in the open markets are higher than those fixed for official procurement, despite the fact the country has experienced a bumper Boro crop this year.
The prices of different coarse and finer varieties of rice in the country now range between Tk 32 and Tk 40 per kg, market sources said, adding that there is little possibility of rice prices falling in the weeks ahead.
Against this backdrop, both the farmers and rice millers are reluctant to sell rice and paddy to the government, officials said.
Besides, a section of rice millers and wholesale traders are learnt to have started hoarding rice, hoping that the rice prices would go up further in the market.
Considering the situation, the Ministry of Food and Disaster Management at its recent meeting made some recommendations including putting a cap on rice stocks by farmers, hoarders and millers to help fulfill the current foodgrain procurement target.
It suggested strengthening of the monitoring through the law enforcing agencies and formulating specific policies in a bid to prevent the rice millers/traders from creating any artificial crisis in the market through hoarding.
The meeting, however, decided to hold meetings with the concerned rice millers and farmers, aiming to make the foodgrain purchase drive a success, officials mentioned.
At a recent meeting with senior officials of Ministry of Food and Disaster Management, the CA also asked the food procurement agency for raising the collection of Boro rice to at least 0.8 million tonnes by June 30, they said.
Food and Disaster Management Secretary Molla Wahiduzzamana along with other senior officials of the ministry and the Department of Food was present at the meeting, which was held Wednesday at the CA's office.
The CA issued such directive, taking the current slow pace in the collection of Boro rice into consideration, said an official.
The government has set the targets of procurement at 1.2 million tonnes for rice and 0.3 million tonnes for paddy during the current Boro season. The purchase drive is to continue until August 31, 2008.
But the Department of Food has, so far, collected about 428,000 tonnes of rice, a senior official said, adding the authorities have also signed agreements with millers on procurement of about 622,000 tonnes of rice.
About 425,000 tonnes of rice were collected in the corresponding period of the last Boro procurement drive, said the official.
Identifying a mismatch between the prices fixed for official procurement and those prevailing in the open market as the main reason for the poor collection of Boro rice, the food ministry informed the CA that it had already taken some steps to help boost the rice purchase.
The government has enhanced this year the procurement price of rice by 55 per cent to Tk 28 a kilogram (kg) over the last year's price, taking the prevailing prices of rice into consideration.
The price of Boro paddy has also been increased to Tk 18 per kg from last year's Tk 11 per kg in a bid to help achieve the government's procurement target.
But prices of both rice and paddy in the open markets are higher than those fixed for official procurement, despite the fact the country has experienced a bumper Boro crop this year.
The prices of different coarse and finer varieties of rice in the country now range between Tk 32 and Tk 40 per kg, market sources said, adding that there is little possibility of rice prices falling in the weeks ahead.
Against this backdrop, both the farmers and rice millers are reluctant to sell rice and paddy to the government, officials said.
Besides, a section of rice millers and wholesale traders are learnt to have started hoarding rice, hoping that the rice prices would go up further in the market.
Considering the situation, the Ministry of Food and Disaster Management at its recent meeting made some recommendations including putting a cap on rice stocks by farmers, hoarders and millers to help fulfill the current foodgrain procurement target.
It suggested strengthening of the monitoring through the law enforcing agencies and formulating specific policies in a bid to prevent the rice millers/traders from creating any artificial crisis in the market through hoarding.
The meeting, however, decided to hold meetings with the concerned rice millers and farmers, aiming to make the foodgrain purchase drive a success, officials mentioned.