Govt doubles rice import target

The food ministry has asked the finance ministry for an additional allocation of Tk 1,002 crore as it has doubled the target of rice import for fiscal year 2007-08.
“We need the money to meet the import target raised twofold to cover the shortfall in local procurement,” said a high official of the food ministry.
Meanwhile, a three-member team of the ministry led by Molla Waheeduzzaman, director general of the Directorate of Food, yesterday left for Kolkata to discuss rice import from India at a special price proposed after Cyclone Sidr.
“We are hopeful this time we will be able to wrap up the negotiations with India and sign the contract,” said a member of the delegation.
In the budget for FY08, Tk 4,260 crore has been allocated for procurement of rice and wheat.
Originally, the government aimed to procure 12 lakh tonnes of rice and one lakh tonne of wheat from local sources and import another 4.5 lakh tonnes of rice and 3.5 lakh tonnes of wheat.
“Till January, the first seven months of the fiscal year, it has procured only 2.67 lakh tonnes of rice, and now it's quite certain that the local procurement target will not be achieved,” said a food ministry official.
“In the last Aman harvest, our procurement was virtually nil,” he said adding that in such circumstances the government has no alternative but to import rice to ensure food security.
The ministry has raised the rice import target to 8.5 lakh tonnes from the previous 4.5 lakh tonnes.
Price hike on the global market is another reason for seeking additional funds, he said.
Talking to The Daily Star, another official said the food stock in the country now is higher that that in the corresponding period last year. Still, it is not sufficient in view of the present context.
“This year the government had to use more of its stock to run programmes like open market sale and vulnerable group feeding,” he said adding that insufficient supplies on the local market and higher prices might further shrink the government's food reserves.
The food stock stood at 6.41 lakh tonnes last week. Of that, 4.27 lakh tonnes were rice and 2.14 lakh tonnes wheat, he said.
At the same time last year, the stock was 6.03 lakh tonnes--5.87 lakh tonnes of rice and 0.16 lakh tonne wheat.
“We are now planning to take our stock of rice to at least 10 lakh tonnes,” he added.
So far the government has imported 2.70 lakh tonnes of rice in the current fiscal year.
Food ministry sources said the West Bengal Essential Commodity Supply Corporation has submitted tender to the Indian government for supply of five lakh tonnes of rice to Bangladesh. The deal has not been settled as the governments have yet to reach a consensus on the price.
The West Bengal Corporation's asking price is about $400 per tonne while the Bangladesh side has been negotiating for Indian local market price that is $350-$360.