Rice market

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We all expected that a bumper boro harvest would help bring down the prices of rice and cereals. But actually the prices of these very essential food items have only increased over the last several weeks. It is surprising that the rice price continued to rise although the world prices of rice and wheat have started declining. Our purchasing power is constantly eroding. The ruling high food price is eating up our income.

The minimum price of coarse rice in Dhaka is Taka 36 per kilogram while outside Dhaka it is Taka 34. This is enough of a statistic to illustrate the food or calorie intake on the part of the common people has declined. Even the middle class families are being affected.

Some economists told the government to go for speedy procurement of rice from domestic sources and release the same at subsidized prices to the local markets and the consumers in the end. Newspapers are talking about effective management of locally produced rice together with expanded public distribution programme in the open market. But the government's procurement of rice reportedly remains yet below the desired level to meet the target thereof. It is alleged that there has been a considerable hoarding by the rice traders and millers. Economist Dr. Abul Barakat told a TV channel that the syndicate and manipulators were still active, despite the presence of law enforcers.

The success of boro production this year highlights the potentials for higher agricultural productivity. The success was possible as the government provided agricultural inputs adequately and timely to the farmers. If the farmers are supported well, they can reach new heights in food production.

The latest trend about the decline of international prices of foodgrains is also an opportunity to import rice in adequate quantities. The government may buy up food at the right time to beef up stocks, together with local purchases, to build a food security structure for the lean season. But timely off-takes and distribution to the open market ought to be the key elements of this strategy.

Ahmed Reza

Dhanmandi R/A

Dhaka