Govt cuts food grain procurement target, but raises allocation

After sourcing 3.18 million tonnes of food grain for public food warehouses in the outgoing financial year, the government has downsized its target of procurement in the national budget for FY'25 -- 2.98 million tonnes of staples.
Allocation for food procurement both from the external and internal sources has been fixed at Tk 167 billion, up from Tk 162.38 billion in the outgoing FY.
The food ministry has targeted to purchase 1.05 million tonnes of rice and wheat from global sources at an estimated cost of Tk 58 billion for FY'25. It was 1.1 million tonnes worth Tk 42.15 billion in the revised budget for FY'24.
For FY'25, the government plans to buy 0.35 million tonnes of rice and 0.7 million tonnes of wheat from external sources.
The food ministry aims to buy 1.93 million tonnes of rice and 10,000 tonnes of wheat from farmers and millers in the country in FY'25. The figures were 2.06 million of rice and 0.1 million tonnes of wheat in FY'24.
The target of food grain distribution is 3.03 million tonnes in FY'25. The actual delivery of food grain as per the revised budget for FY'24 was 3.35 million tonnes.
Agricultural economist Prof Gazi M A Jalil told the FE that given the inflationary pressures in the country, it has become imperative for the government to expand its safety net programme. This expansion would enable millions of newer poor to access rice and wheat flour at subsidised rates.
He said global food prices, however, have been showing a decline this year so far.
Downsizing the procurement target while simultaneously increasing allocations raises questions about the coherence of the budget, he expressed concerns.
This decision may invite scrutiny from analysts and stakeholders, as it appears contradictory and could impact the effective utilisation of resources, he added.
He said the country has got a bumper rice production in this Boro season.
Apart from sourcing grains from abroad, management of local grains is necessary, he added.
He also said the food security in coming months would solely depend on the success of food procurement drive during this Boro harvesting season.

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