Government has taken all sorts of preparation to meet the demand for rice and paddy and ensure food security of the country despite the coronavirus pandemic and worsening flood situation.
The government has extended Boro rice and paddy procurement process for 15 days which will end tomorrow (Tuesday) to procure more crops from millers.
According to the Food Ministry sources, the government has huge rice and paddy in stock.
However, a vested quarter comprising rice millers, hoarders, and middlemen are manipulating the rice market through syndication.
Rice mill owners who inked a deal with the government to supply rice and paddy to the government warehouse, supplied very little amount against the target.
Secretary of the Food Ministry,MosammatNazmanaraKhanum told Bangladesh Post that, “We have procured around 7.5 lakh tonnes of rice and 2.15 lakh tonnes of paddy so far. We are not worried about the deficit as last year we had procured a huge amount of rice and paddy. We have 14.76 lakh tonnes of rice and paddy in our stock now.”
“We had to distribute a big amount of rice for the sudden outbreak of global pandemic coronavirus. As there will be a small amount of deficit, to meet the target if necessary we will import rice from abroad through the open tender system,” she added.
“We are well prepared to face any uncertainties. We are now looking forward to Aman harvesting. If there is no second wave of flood in the country then we will be able to meet our demand with our stock”, she further said.
It is to be noted that the government collection rate for rice is Tk 36 per kilogram (kg), whereas the costing of millers is around Tk 40 including the husking cost. In this situation, most of the millers are reluctant to supply rice and paddy to the government warehouses.
On the other hand, millers also claimed that they were unable to supply the necessary amount of rice and paddy due to the coronavirus outbreak and flood situation.
In this regard, the secretary said, “We will ask for an explanation from the auto rice mill owners. They will face strong punishment if they fail to explain. On the other hand, those who have supplied their portion properly will get incentives and other facilities.”
Vice President of Bangladesh Rice Merchant Association MollaKawserAlam Khan told The Bangladesh Post that, “A good number of mill owners are not supplying rice and paddy to the government warehouses as per their agreement. They are hanker after money and want to make high profit. In this situation, if the government decides to punish them it will be logical.”
“Last year the procurement target was 12 lakh tonnes which was an easily achievable target but this year the target was about 20 lakh tonnes which is much higher than the previous year. Moreover the ongoing coronavirus pandemic and worsening flood situation are making the target tough to achieve,” he added.
However, the mill owners are allegedly selling their collected paddy and rice to retailers for making high profit.
According to the International Food Policy Research Institute (IFPRI) has conducted a study on rice prices, production costs, and procurement methods for the 2019 Boro season. The study found that rice mill owners bought paddy from farmers at Tk 14.96 per kg that season, which was about Tk 11 less than the price set by the government. They processed the paddy and sold it at Tk 36.
Farmers are being deprived of paddy prices mainly due to the anomalies of middlemen. Development of market management and the price of paddy have to be fixed at the beginning of the season, experts opined.