Explaining why comfortable public food stock is important

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ACCORDING to media reports, out of the current year's targeted internal procurement of 1.2 million tonnes of rice and paddy, only about 0.6 million tonnes have actually been procured so far, although the deadline for the procurement drive will expire very soon. There are several reasons for the drive failing to meet the expectations; the main one is stated to be that the sellers do not find enough incentives from the government-set procurement price, despite its upward revision at a later stage.
A reasonable food stock available with the government adds to the food security of the country. This can help the country by lowering dependence on import of foodgrains which can put undue pressure on the country's foreign currency reserve. A good buffer stock based on internal procurement is important for the purpose. The government can also intervene in the market with open market sale (OMS) operations, whenever aberrations are noted in the market prices of rice by releasing food from its stocks at fair prices. These activities benefit the poor and help in the stabilisation of market prices of foodgrains. The availability of a substantial quantity of foodgrains for supporting developmental activities in terms of various rural programmes can furthermore be ensured, if the domestic public foodstok is comfortable. The poor are significantly aided by such programmes.
Therefore, if the government cannot maintain ample stocks of foodgrains in its hand, it is a matter of concern. Specially, the anxiety is more as global prices of foodgrains are increasing, causing their scarcity as well.
Shamim Ahmad
Kalyanpur, Dhaka