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PADDY E-PROCUREMENT SYSTEM

Farmers facing higher costs due to anomalies

Staff Correspondent
18 May 2023 00:00:00 | Update: 18 May 2023 00:49:58
Farmers facing higher costs due to anomalies

Bangladesh Institute of Development Studies (BIDS) in a study has found that transaction costs in the paddy e-procurement system are higher than that in the traditional one due to various irregularities and mismanagement.

But the system has a positive effect on the income that farmers get from selling paddy, the study titled “Public Paddy e-Procurement Program in Bangladesh: Effects and Efficacy” said.

The findings of the study were unveiled at a ceremony held at a hotel in the capital’s Gulshan on Wednesday.

According to the study, the farmers who registered and won the lottery and then sold paddy to the procurement centre using the e-procurement system are incurring comparatively high transaction costs than the traditional method due to different types of irregularities and mismanagement.

It suggested taking appropriate measures to stop such irregularities in order to make the public paddy e-procurement system popular in the country.

Speakers at the event said despite its good sides, the e-procurement system is facing irregularities related to service, high administrative costs, leakage, and inefficient implementation and mismanagement.

The government will have to remove all barriers to make the e-procurement system popular, aiming to build a smart Bangladesh, they added.

The government launched the mobile phone-based e-procurement system of paddy in 2019-20 in a few sub-districts in the country.

Under the system, the government selects farmers through a computer-based lottery from the eligible pool and buys paddy directly from them.

The key objective of the programme is to prevent irregularities in paddy procurement operations so that farmers will get fair prices for their produce and the middlemen will get no opportunities for exploitation.

The government is buying food grains from the domestic market, stores them in public warehouses, and distributes them through different channels of the public food distribution system.

The objectives of public food grain procurement programmes include providing price support for farmers, stabilising market prices, and building public stock for food-based assistance distribution.

Earlier, farmers had to go to the upazila office for information on the sale of paddy. Now they can receive this information online or on their mobile phones.

The study also found that farmers far away from the local supply depot (LSD) are less interested in the e-procurement programme compared to those located nearby.

The study suggested reducing the transaction costs to attract more farmers to the e-procurement system.

Education can help increase the participation of farmers in e-procurement and there is a need to undertake programmes to increase awareness among farmers, said the study.

The BIDS also found in the study that “krishi cards” are many times used by non-farmers and real farmers are not aware of this.

It suggested taking necessary steps to stop such irregularities and ensure that the krishi cards contain the registered mobile phone numbers of farmers.

 

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