Staff Correspondent, The Daily Star, 03 May 2008

Eminent economist Dr Wahiduddin Mahmud yesterday said he has proposed to the caretaker government to form two task forces to keep rice price within the purchasing capacity of people at all levels, and ensure food security for all.

“Recently, I proposed to the government to form two task forces –food management and security task force and agricultural production support task force,” Wahiduddin said while addressing the inaugural session of a two-day workshop in the capital.

Giving details, he said food management and security task force will oversee food procurement, import and distribution channels so that people at all levels can have food grains, especially rice, within their purchasing capacity.

Agriculture production support task force will work to ensure easy availability of farm inputs needed to produce rice focussing on price and distribution of fertiliser, diesel, hybrid seed and irrigation, he said.

“Country’s food security cannot be ensured unless it attains self-sufficiency in production of rice,” the renowned economist observed.

Wahiduddin blamed an international syndicate for rice price hike in global market.

Institute of Media & Communication Studies organised the two-day workshop on food security for journalists, held at Chhayanat Bhaban. Experts deliberated on various aspects of this vital issue at two working sessions on the day.

Prof Dr MA Sattar Mandol of Bangladesh Agriculture University, Mymensingh, spoke on ‘Food Security: Way to make it sustain in Bangladesh’ and Dr Fahmida Akter Khatun on ‘Global Warming & Crop Cultivation Method: Bangladesh Perspective’.

Khandaker Ibrahim Khaled, former deputy governor of Bangladesh Bank, deliberated on ‘Subsidy & Bank loan policy to Agriculture: Is it farmer friendly?’

The Daily Star, 09 May 2008

AFTER months of wrestling with higher prices, marked by a recriminatory phase in the government-business relationship, both sides seem to have arrived at a common ground at long last. The FBCCI has formed a composite taskforce comprising representatives from business community, consumer rights protection association, ministries concerned and joint forces to monitor price situation in retail and wholesale markets and implement measures to keep the prices in check.

We have tried to make the point before that an initiative from within the business community is a much better option for keeping the prices down than market intervention by other quarters. In fact, the confidence building measures attempted from time to time to secure cooperation of businessmen did not seem to carry conviction in the face of an interventionist approach that were willy-nilly taken to the market.

The experts have identified the main obstacle towards effective forecasting and monitoring of market behaviour as lack of reliable data on demand and supply. Now this shortcoming is sought to be removed by the new taskforce designed to collecting, preserving and updating information on daily prices of essentials including commodity-wise details of supply and demand and production profiles. To top it off, it will publish weekly and monthly reports on export and import, stocks, market trends etc. The whole idea is to make possible well-informed decisions based on effective analysis.

It is thus that the prevailing disconnect between the business community and the consumers on the one hand, and that between the government and the traders on the other will have been overcome by building bridges between the stakeholders. It is good to see that manipulative hoarding is being separated from genuine stockpiling to meet scarcity situations. We are also heartened by the FBCCI tasking itself with the responsibility of putting in measures whereby prices wouldn’t rise before or during the month of Ramadan. The FBCCI president is hopeful of the taskforce bearing results within next four to five weeks.

To our mind, there are three prerequisites for the success of the new move: first, the government’s efforts to build confidence with the trading community must be tangibly complemented by facilitating private sector import; two, impetus must be provided for greater national productivity; and three, the business community should demonstrate a social commitment to easing the plight of the low and middle-income groups.

Staff Correspondent, The Daily Star, 13 May 2008

The price of different varieties of rice has risen in the wholesale markets in the capital over the last two days since the government’s rice procurement programme began across the country.

Some wholesalers are saying that the price hike is a result of farmer holding back stock to avoid selling at lower prices to the government while the procurement continues.

The price of rice rose by Tk 20 to Tk 40 per maund (37.32kg) in the wholesale market in the city, selling now from Tk 1,100 to Tk 1,400 per maund compared to prices between Tk 1,070 to Tk 1,360 only two days ago.

This increase in price has impacted the retail markets where sellers are raising the price of rice by Tk .50 per kg.

Retailers are saying that the price hike will continue for the next few days.

Wholesalers are however saying that the price of coarse rice has been more affected by the government procurement than the finer rice varieties.

Mohammad Nizamuddin, secretary general of Badamtoli-Babubazar Rice Wholesale Association, while talking to The Daily Star confirmed the price hike across the country over the last two days.

He said that because farmers are only selling to the government at present, they are unable to meet the demand in the market, in price rise in the open market. The situation would improve within a few weeks, he added.

Wholesalers are however saying that because the government procurement is at a fixed price, farmers are holding back their stock to sell it at a better price in the open market, once the government procurement is over. That has caused the shortage in supply, they say.

Director General of the Food Directorate Pias Costa told The Daily Star that the rice procurement of the government started in mid April and the food directorate’s warehouses is are already being stocked up for the past few days.

Meanwhile in the markets, price of Miniket has leapt to Tk 1,380 to Tk 1,390 from Tk 1350 to Tk 1360 per maund while IRRI rose to Tk 1,100 to Tk 1,120 from Tk 1,070 to Tk 1,080 two days ago.

A maund of chapal is selling at Tk 1,160 to Tk 1,170, up from Tk 1,120 to Tk 1,130.

Staff Correspondent, The Daily Star, 14 May 2008

The wholesale and retail prices of different varieties of rice increased in the capital yesterday while edible oil prices saw a hike during the last two days.

Crowd at the Bangladesh Rifles (BDR) fair price outlets in the city is increasing day by day. The number of buyers was smaller during the last two weeks when the prices of rice were falling. People started gathering at the BDR fair price outlets yesterday dawn to buy rice at Tk 25 per kg.

The BDR at 75 outlets in the city is selling rice putting people in two queues, instead of four, since last week. It is selling 3kg of rice to each person instead of the 5kg it used to sell.

Col Mujibul Haque of BDR told The Daily Star that he instructed BDR personnel at the outlets to increase the number of queues if necessary.

The wholesale prices of different varieties of rice rose between Tk 10 and Tk 20 per maund (37.32kg) while retail prices of different varieties of rice rose by Tk 1 yesterday.

A number of the wholesalers told The Daily Star that the supply of course rice is poor as government procurement of rice is inspiring rice-mill owners to sell rice to the government instead of them.

During the last two days prices of edible oil rose by Tk 20 to 40 per maund in the city’s wholesale markets. This rise is yet to have an impact on the retail markets.

Soya bean oil was selling between Tk 4,030 and 4,040 per maund yesterday; it was between Tk 4,000 and Tk 4,020 two days ago. Palm oil (super) was selling between Tk 3,730 and Tk 3,740 per maund; it was between Tk 3,700 and Tk 3,710 two days ago. Palm oil (ordinary) was selling between Tk 3,670 and Tk 3,680 rising from Tk 3630.

Agence France-Presse . New Delhi, The Daily New Age, 17 May 2008

Children in South Asia are bearing the brunt of spiralling food prices as malnutrition is on the rise with millions at risk, the UN children’s fund said.
   The price of rice and wheat has doubled under the worldwide pinch. Poor households are consuming one less meal or substituting expensive ingredients, David Toole, regional director of UNICEF South Asia, told a press briefing on Tuesday.
   ‘When food prices double we have a near perfect storm affecting children in poverty,’ Toole said. In South Asia, ‘we are seeing increasing rates of malnutrition in the past several months in mostly western and midwestern areas. These are the poor areas.’
   At 42 per cent, South Asia has the world’s highest underweight prevalence.
   ‘Because the rates of malnutrition in South Asia are so high, it’s very hard to know if this is the cause for the change,’ he said, referring to the spiralling food prices.
   Still, a spokeswoman for UNICEF South Asia said many youth were at risk from the food crisis, particularly in India, where at least 43 per cent of children are already suffering from malnutrition.
   ‘Nearly 1.5 to 1.8 million (Indian) children could become malnourished. That is what we fear,’ said Sarah Crowe, the spokeswoman.
   Toole said the higher food prices would persist for years since Asian economies have shifted their focus from agriculture to manufacturing.
   ‘This is a problem that is not going away. It is likely to continue for a couple of years, and children will take the brunt of this,’ he said.
   At a separate press conference, the Indian government said child malnutrition was a major challenge.
   MK Bhan, secretary of India’s biotechnology department, told AFP that if malnutrition was not addressed by the age of two, children become vulnerable to diabetes and heart conditions as adults

Food prices the wild card in the deck

Munim Chowdhury, The Daily Star, 22 May 2008

ALL the good achievements of the caretaker government seem to be facing serious challenges in the wake of high prices of food, particularly rice. The global food shortage and galloping increase of food prices, and their impact on Bangladesh in recent months, are not understood by the poor masses. All they understand is the price structure that existed during the rules of Hasina and Khaleda, and compare it with the prices they are paying at the moment.

The question they ask is: “Are we better off now than three years or eight years back?” All they are interested in is the rise in prices of food and other basic essentials.

The caretaker government has the following major achievements to its credit:

• They made our streets and homes safer from muggers, toll collectors, and mafias,
• Created an effective Anti-Corruption Commission by selecting a non-controversial, competent, incorruptible, well motivated, creative and unblemished person to head the organisation, together with some other praiseworthy individuals who comprise the team,
• Reorganised and restructured the Public Service Commission, which enjoy public confidence to a large extent,
• Reorganised the Election Commission with some respectable impartial citizens who are committed to deliver good results to the country,
• They separated judiciary from the administrative service, which was being debated and was under active consideration of the government for a quarter of a century.

  These are not their only achievements. Other national issues, which they tackled effectively with reasonable degree of success, cannot be covered in this article.

  The sad part of the whole issue is that all this is vanishing from public memory to the advantage of some hungry, powerful, corrupt political leaders waiting to return to the pre 11/1 days to exploit the food prices issue.

  The high prices of food grain are not the creation of this government, they are global phenomena. It is ill-luck for Bangladesh and the caretaker government that the country faced three disasters in 2007, which has largely contributed to shortage and high prices of rice and other agricultural commodities.

  One significant reason for the caretaker government’s fall in popularity is perhaps the selection of the advisers, who were not necessarily selected very judiciously and wisely. The selectors should have gone out and found the best experienced, talented and impartial personalities that Bangladesh could offer.

  Food prices are affecting everyone all over the world, including the US. Asians, Africans, and Latin Americans are the major victims. Governments in many countries are facing food riots. Argentina, the Philippines and Kenya are among those countries.

  Musharraf of Pakistan lost the election primarily because of the escalating prices of flour and other food items. The present government in Pakistan will face this challenge in the months to come. People are standing in breadlines in many countries. People in the Philippines are spending 68%, Indonesia 78%, and Egypt 69% of their income on food. In the land of abundance of food, namely US, people are complaining about the high cost of food, which has jumped to 18% from 12% of their income in six months.

  From Mexico to Pakistan, violent protests over food prices were witnessed. West African nations have seen violent attacks on government offices and looting of food godowns.

  The high prices of food grains, and shortages, are likely to continue for several years, and our country needs to prepare to avoid disaster. No matter who runs the government, the caretaker government, military government or democratic government, the country will face a very challenging time in the years to come.

  The World Bank estimates that the recent food price increases will push another 100 million people globally into extreme poverty and starvation. It will take at least several years to stabilise world food shortages and millions are likely to starve and perish. The tragic implication is serious enough, unless something is done quickly in a planned manner to meet the challenge.

  Political governments in the past robbed our country and, today, two former prime ministers, three home ministers and dozens of other corrupt powerful political figures are in custody on corruption charges.

  During their time, the country earned the status of world’s number one corrupt country. Some hungry politicians are out shouting for western prescribed democracy and the release of those leaders who brought misery to the people of Bangladesh. These politicians have no solid base, they want to contest election under the wings of the two ladies, who succeeded in coming to power by playing on innocent public emotion and taking advantage of their murdered father/husband who were once the country’s revered national leaders.

  Additionally, our eagerness to quote Boucher and Anwar Chowdhury on democracy and human rights is not going to help much in overcoming the food shortage. The corrupt politicians returning to power may not help Bangladesh much in reducing the high prices of food and other essentials, or preventing a possible violent public outburst.

  Bangladesh’s future will depend on how well we plan and implement actionable agro-based programs to make the country self sufficient in food, and feed the growing population of 150 million people with dalbhat.

Munim Chowdhury is a freelance contributor to The Daily Star.

Staff Correspondent, The Daily Star, 24 May 2008

Rice prices in the city’s wholesale markets came down by Tk 20 per maund yesterday.
Wholesalers said prices may not spike again in the coming days. The price fall, however, did not trickle into the retail markets.

The price of Parija, a mid-quality fine rice that was sold at Tk 1,180 to Tk 1,200 per maund (37.32 kg) Thursday, was sold for between Tk 1,160 to Tk 1,180 a maund yesterday.

A maund of BR-28 (Lata) rice, also a medium-quality fine rice, was selling at Tk 1,150 to Tk 1,160 on the wholesale market yesterday. This variety was sold for Tk 1,170 to 1,180 per maund a day ago.

Irri, a coarse rice, was being sold for Tk 1,060 to Tk 1,070 a maund yesterday which was sold for Tk 1,080 to Tk 1,090 a day ago.

A maund of fine-variety Miniket rice was selling at Tk 1,390 to Tk 1,410 yesterday. It was sold at Tk 1,410 to Tk 1,430 Thursday.

The general secretary of Badamtali-Babubazar rice wholesale market in the city, Nizam Uddin, attributed the price fall to increased supply and decreased sale.

“Sales dropped as many people purchased paddy when Boro harvest started to enter the market. Many city residents also bring rice from their village homes, while a good number of labourers went back to their villages during the harvest”, he said.

Masud Rana, manager of Ekata Rice Agency at Mohammadpur Krishi Market in the city who is now in Kushtia to procure rice, told The Daily Star over the phone that many farmers who stockpiled rice in order to sell it at high prices started to sell their produce as prices remained stable for the past few days.

The wholesale price of rice also came down by Tk 15-20 per maund in Kushtia markets yesterday, he said noting that prices have been decreasing for the last two days.

Prices of coarse-rice varieties reached Tk 1,300 and fine-rice varieties Tk 1,650 per maund in the first week of April. Prices started to come down from late April as Boro rice began to enter the city markets.

Prices, however, saw a fresh hike after May 10 as farmers, hoarders and businessmen started to stockpile rice with the hope that prices would hike again. The government’s rice-collection programme also worked behind the price hike at the time.

Rice wholesalers said prices usually witness a fall during this period every year as the harvest ends by this time. This year, however, has been an exception as the price is now between Tk 1,060 to Tk 1,410 a maund despite having a bumper production.

They said the minimum prices of rice in city markets were between Tk 680 to Tk 870 per maund in May last year.

Pias Costa, director general of the food directorate, told The Daily Star that they would collect 12 lakh tonnes of rice and 3 lakh tonnes of paddy within August 30, adding that 1.25 lakh tonnes of rice have so far been collected.

Food-directorate officials said this year the projected Boro rice production is 1.75 crore tonnes. Last year, it was 1.45 crore tonnes.

They said the government will import 5 lakh tonnes of rice from India this year; as of last week, it has so far imported only 80,000 tonnes. The remaining consignments will be imported in two-three months.

Staff Correspondent, The Daily Star, 31 May 2008

The prices of vegetables came down by Tk 2 to 5 per kilogram in the capital’s kitchen market in the last week.

Meanwhile, prices of rice, edible oil, pulses and sugar remained stable in the last week.

The prices of most of the vegetables fell at kitchen markets in the capital due to adequate supply. Aubergine, bitter gourd, okra, patal, barbati, chichinga, and green papaya were sold between Tk 8 and 16 per kg in the retail market. Previously, they were sold for Tk 10-20 per kg.

The price of potato remained stable at Tk 12-14 per kg while tomato price rose by Tk 2 per kg in the retail market.

Prices of leafy vegetables including puishak, and datashak reduced in the kitchen markets.

Vegetable wholesalers at Karwan Bazar said adequate supply of vegetables resulted in the fall of their prices.

Meantime, prices of rice remained stable in both retail and wholesale markets in the last week.

The wholesale price of different rice varieties was between Tk 1,060 and 1,410 a maund yesterday while the retail price was between Tk 32 and 42 per kg.

The price of soya bean oil and palm oil also remained stable. Soya bean oil was sold at Tk 108-112 per kg while palm oil was sold at Tk 100-105 per kg in the retail market in the last week.

Pulses were sold for Tk 80-90 per kg yesterday while the price of sugar was between Tk 34 and 37 per kg.

Prices of egg and both the battery and free-range chicken remained stable while fish prices witnessed a slight hike in both wholesale and retail markets in the last week.