Poverty ups despite bumper Boro output

Bangladesh's undernourished population has increased by 7.3 million -- from 39.6 million to 46.9 million -- largely because of the impact of higher food prices and the damage of Aman rice last year, says a report of FAO and WFP.
The report says that as a result of rising food prices and general inflation, more than half of the country's 145 million population is now food insecure and nearly one-third is understood as severely food insecure.
The special report prepared by FAO/WFP Crop and Food Supply Assessment Mission to Bangladesh was released on August 28.
"Of particular concern is the finding that most of this growth has occurred within the ranks of the more severely food insecure; meaning those consume below the 1805 kilo calories per day," the report says.
The Mission assessed the 2008 Boro and wheat production and estimated Boro rice output at 17.54 million tonnes, increased by some 17.2 percent from the previous year and 29.3 percent above the five-year average.
This increase of production was mainly due to favourable weather conditions and extra efforts made by farmers and government in response to the high rice price and production loss of 1.4 million tonnes in 2007 Aman season following severe flooding and Cyclone Sidr.
The total cereal output in the 2007-08 (November/October), including 2007 Aman, 2008 Boro and Aus seasons, is estimated at 28.85 million tonnes, 5.6 percent above the previous year. Total cereal import requirement in the 2007-08 is estimated at about 3.07 million tones.
The report says, "Though good production of Boro has been achieved nationally, this does not fully compensate for the heavy losses some farmers suffered in the previous Aman season in the south and east of the country."
The wholesale and retail prices of coarse rice, the nation's major food staple, have increased by 78 and 82 percent, respectively, from June 2006 to June 2008.
Rapid price rise of rice and other essential foods is putting immense pressure on the poor urban and rural households, forcing them to abandon consumption of protein foods and causing an increase in malnutrition at all levels.
According to the report, the Mission estimates that the increase in food prices has raised the number of the Absolute Poor by 9 million people, to a total of 80 million (58.3 in rural and 21.4 in urban), and raised the prevalence of undernourishment to over 55 percent.
The Mission also estimates the food assistance needs of the country to be 1.76 million tonnes, of which 35,000 tonnes are for vulnerable households affected by Cyclone Sidr. To meet this need, 500,000 tonnes will be imported and 1.26 million tonnes purchased locally.
Producer prices of rice have increased for Boro season. Wet paddy price in 2008 is Tk 18-20 per kg compared to Tk 10-12 last year, milled rice prices vary from Tk 30-40 compared to Tk 15-16 per kg last year.
"But due to sharecropping arrangements and lack of working capital which forces forward sales, many farmers did not get the full benefit of these price increases," the FAO-WFP report observes.
Prior to the 2007-08 shocks, an estimated about 7.58 crore individuals in Bangladesh were below the food consumption threshold of 2122 kilocalories per person a day. Within this group, an estimated 3.96 crore people fell below the more severe poverty line food consumption threshold of 1805 kilocalories per person per day.
"Rice and other food commodity prices have been rising since early 2007, but rose more rapidly between late 2007 and the first four months of 2008. Prices have decreased somewhat since their peak in April 2008, but still remain at relatively high levels," the report observes.