Govt to buy rice at Tk 39 per kg

The government is going to procure 3 lakh tonnes of rice in the next Aman season from domestic sources at a price higher than that of last year's.

The move aims at increasing the food stock and ensure fair price for farmers.

The Food Monitoring Committee in a meeting chaired by Food Minister Qamrul Islam fixed the procurement price at Tk 39 a kg while last years' price was Tk 33.

The amount to be procured remains same as that of last year's, the minister told reporters at a short briefing after the meeting at the ministry auditorium.

The food minister said the cost for producing each kg of rice was Tk 37 this year while it was only Tk 29 last year

It means that the production cost has increased by 27.58 percent while the government's procurement rate would increase by 18.18 percent only.

A food ministry official said increased production cost has forced the government to raise procurement price.

The chances of the price of coarse rice falling below Tk 42-43 in next few months are slight, the official added.

The government has been desperately trying to replenish its depleted stock through imports after production was hit by flash floods and fungal attacks.

Despite deals with several rice exporting countries, including Vietnam, India, Thailand and Myanmar, Bangladesh is still battling to increase its reserves.

The import of rice at both government and private levels have picked up lately. From July 1 to November 28, a total of 18.96 lakh tonnes of rice was imported. Of the quantity, 4.05 lakh tonnes was brought in by the government.

The cabinet committee has so far approved proposals for import of around 14 lakh tonnes of rice through state-to-state arrangement and international bidder via open tender.

As the rice production was hampered by the floods and fungal attack, prices skyrocketed and went beyond Tk 50 per kg for coarse rice. The prices, however, have fallen slightly in recent times.

As per a food ministry report, coarse rice was sold at Tk 40 to Tk 43 per kg last week. It was below Tk 35 one year back.

The government food stock at one stage came below 3 lakh tonnes but now it is increasing gradually.