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Govt food grain stocks rapidly decreasing

Rokon Uddin
25 May 2024 21:17:56 | Update: 26 May 2024 14:47:41
Govt food grain stocks rapidly decreasing
— Courtesy Photo

The government’s food grain stock is rapidly decreasing, with rice, paddy and wheat dropping from 1.845 million tonnes at the beginning of FY2023-24 to 1.157 million tonnes within 10 months, an approximately 37 per cent decline.

Specifically, the stock of rice, the country’s staple food grain, has decreased from 8,00,000 tonnes a month ago to 7,00,000 tonnes.

The government has set a target to procure a total of 1.635 million tonnes of food grains, including 1.585 million tonnes of rice and 50,000 tonnes of wheat from the current Boro season between May and August.

However, the slow pace of Boro collection has disrupted this plan. The government needs to collect more than 4,00,000 tonnes of paddy, rice and wheat every month.

So far, the government has collected a total of 69,300 tonnes of rice since May 7, which is only 4.23 per cent of the total target.

Additionally, the government distributes more than 2,50,000 tonnes of food grains every month in various ways, including open market sale (OMS) and the Trading Corporation of Bangladesh (TCB) family card.

As such, more than 1 million tonnes of food will be distributed from the warehouses between May and August.

According to the food ministry’s distribution data, 2.75 million tonnes of food grains have been sold at subsidised prices or distributed as relief for various programmes, including essential priorities, OMS, large employers, the food-friendly programme, and Kabikha (Kajer Binimoye Khaddo), until May 9 from the beginning of FY24.

This is 2,10,000 tonnes more than the amount — 2.54 million tonnes — of food grains distributed during the same period in FY23.

In 2024 so far, an average of about 2,50,000 tonnes of food has been distributed every month.

The factors affecting the stock

Agricultural economists have stated that the government's non-importation of agricultural products, inability to meet collection targets from the local market, and increased distribution of rice under various government programmes have played major roles in the rapid depletion of food grain stocks.

If rice collection during the peak Boro season is not prioritised, the government's buffer stock may fall to very dangerous levels, they warned.

Private mills will take advantage of this situation and increase the price of rice as they please. Additionally, distribution activities at subsidised prices will be at risk and may stop. Therefore, efforts should be intensified on the collection of rice and wheat from local and foraging markets, said the experts.

An alarming trend

 According to the Ministry of Food, there were 1.845 million tonnes of food grains stored in government warehouses in July last year, which was the first month of FY24. The amount decreased to 1.157 million tonnes by May 20 this year. This includes 7,81,000 tonnes of rice, with the rest being wheat.

Food grain stocks are about 4,00,000 tonnes less than what it was — 1.539 million tonnes — in May last year in government warehouses.

On April 17, the total stock of rice in the government warehouses across the country was 8,77,000 tonnes, representing an 11 per cent decrease in one month.

By September last year, the stock of food grains had decreased to 1.62 million tonnes, and it further decreased to 1.372 million tonnes in December.

In contrast, the government stock of food was 1.648 million tonnes in July 2022, which was the first month of FY2022-23, 1.652 million tonnes in December, 1.713 million tonnes in March, and 1.680 million tonnes in June.

Domestic procurement needs a boost

Ripon Kumar Mondal, a professor at the Department of Agricultural Economics at Sher-e-Bangla Agricultural University, told The Business Post, "The method by which the government collects paddy from farmers is very complicated, causing farmers to be reluctant to provide paddy to government warehouses due to concerns over potential losses.”

“Private mills exploit the situation, purchasing paddy from farmers at the lowest price, then producing rice to supply to government warehouses, which slows down the government's rice purchasing processes,” he said.

"Therefore, the government should arrange to collect rice quickly from mill owners to increase the stock rapidly. Although the government stockpile is not at risk at the moment, it could be at risk if the procurement of food from domestic and foreign sources is not accelerated," he added.

 ‘Nothing to worry about’

Meanwhile, talking to The Business Post, Food Secretary Md Ismail Hossain said, "It is true that food stocks have decreased somewhat; however, there is nothing to worry about as we currently have sufficient stock.”

"We need to have a rice stock of 6,00,000 to 7,00,000 tonnes in June, and the total food grain stock will be around 1.2 million tonnes, which we anticipate having. Our warehouse stock is being carefully managed and planned to last until the next Aman season," he said.

The food secretary further said that Boro season collection started on May 7, but the main rice collection programme starts in June and throughout June-July, the bulk of the target is collected.

"We have been fulfilling the target of rice collection 100 per cent every year and it will be the same this year," he said, adding that most of the mill owners of the first phase have already been contracted for the supply of rice, and the rest of the second phase will also come under contract very soon.

"As a result, by the end of July, our rice collection target for this year's Boro season will be almost fulfilled," Ismail said.

"Our food stock will cross 2 million tonnes, out of which, maybe 6,00,000 to 7,00,000 tonnes will be distributed," he added.

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