Dilemma over

Against the backdrop of hyper inflation of food worldwide, any fall in food prices, particularly of the staple rice is much welcome news for consumers in Bangladesh, who are gasping for breath on account of market volatility. Yet, when wholesale prices of paddy go down to a point that is lower than the cost of production, glee turns into gloom for the millions of agro-farmers across the land. This is precisely what is happening this season with Aman paddy. Stability of price of rice has become a major source of concern for policymakers, for unless a balance can be struck between what it costs to produce rice and what farmers can get at the time of sale, farmers are likely to turn away from cultivating rice altogether - a nightmarish scenario. While it was smiles all around last year for farmers with Aman paddy prices reaching Tk 750 - 900 per maund (37.32 kilograms), this year the same is being sold between Tk 600 - 700 at wholesale markets. With regular increment in prices of both fertiliser and diesel this past year, production costs have inevitably, jumped up. Hence, being forced to sell at a loss does little to encourage producers to stick to rice and the policymakers fear it will adversely affect upcoming Boro production. The sad reality for both producers and consumers of rice is that neither group is getting the benefit; rather it is the middlemen who are reaping windfall profits due to a faulty supply-chain management system. The wholesale manipulation that is engineered by transport owners -- wholesalers working in cahoots with a section of millers -- adds to the 'extra' tolls at every juncture of the transportation system. This in turn helps balloon the price of rice in kitchen markets around the country to a point that turns the staple food dear to the majority consumers. Unlike neighbouring countries, Bangladesh relies largely on road transportation as the primary means of transporting goods. This invariably leads to a price jump as a goods-laden trucks must course long routes at times needing ferry services, paying toll money, both legal and off-the-record at multiple points during its journey. What is obvious is that neither the grower nor the consumer is getting a fair price for the produce that they rightly deserve. While the government is supposed to oversee such matters of manipulation, it would be unfair to think that State machinery can effectively monitor and much less take any effective measure against a countrywide and entrenched system that benefits all concerned except the producer and consumer. What is achievable by the State, but which successive governments have shied away from is upgrading and expanding the railway network in the country. For no other form of transportation can move such bulk amounts of goods long distances on land within a reasonable time. Also locomotives are not subject to the long tailbacks that plague the country's roads and highways. The basic infrastructure is already in place, what is lacking is political will to do what is both morally and economically correct.