Dhaka pushes for Saarc Food Bank

Bangladesh desires Saarc Food Bank to be effective as soon as possible and the central banks of the region to frame monetary policies to boost food production and accessibility to fight climate change impacts.

"We are at a critical moment due to frequent natural catastrophes. Saarc Food Bank is an opportune concept to practise humanity since the countries of the region have serious food shortage. Such food bank enhances confidence," said Finance Minister AMA Muhith.

The minister was addressing the inaugural phase of finance governors' symposium styled "Food Security: the role of Saarc central banks" organised by the Bangladesh Bank at Pan Pacific Sonargaon Hotel in the capital. Central bank officials from the Saarc countries attended the daylong programme.

The concept paper of food bank was prepared at a Saarc summit in January 2004. Eventually, in 2007 a deal was signed to finalise the constitution of the Saarc Food Bank to ensure food security of more than 1.5 billion people. However, steps are yet to be taken to make it functional.

The finance minister said the major nations of the South Asian Association for Regional Cooperation (Saarc) should concentrate more on the issue of cooperation to which Bangladesh was fully committed.

Speaking as the chief guest, Muhith said it is not enough to have food if people do not have access to it. This is where the central banks can play a key role by forming monetary policies to help accelerate growth.

Stressing implementation of the Saarc Food Bank, Food and Disaster Management Minister Abdur Razzaque said relaxing tariff and non-tariff barriers and increasing trade facilities in the region might ensure food security.

"I hope political leaders of the region will come together to help this out," he said, adding that if global economic meltdown continues, the pressure on food, remittance and resources would go high.

Bangladesh Bank (BB) Governor Atiur Rahman said by framing monetary policies the central banks could help overall growth giving importance to the marginal farmers and ensuring adequate supply of food.

He said the October 2009 Global Hunger Index reported "distressingly high" hunger levels in south Asia with "alarming vulnerabilities for the three populous countries like India, Pakistan and Bangladesh."

To boost the credibility of the sharecroppers, marginal and landless farmers and the small and medium enterprises (SME) the central bank should provide loans, said the BB governor, citing examples that in many countries there are crop insurance for the farmers and repayment guarantees for the SMEs in mitigating loan default risks to help the agricultural and SME sectors.

BRAC Executive Director Mahabub Hossain and BB Deputy Governor Nazrul Huda also spoke at the symposium.