Food grain stocks in government warehouses have reached their highest level ever. Officials describe the stock of more than 20.5 lakh tonnes of paddy, rice and wheat as a record. At the same time the government is on course for its highest procurement of paddy and rice in the current boro season, which may exceed 15 lakh tonnes this time. Directorate of Food officials said such a volume had never before been procured from this crop.

According to the latest Directorate of Food data (27 July), total food grain stock in government warehouses stood at 20,54,179 tonnes: 17,95,096 tonnes of rice, 1,24,146 tonnes of paddy and 1,78,388 tonnes of wheat.

Earlier, in January 2022, government food grain stocks reached 19.85 lakh tonnes, which officials said was the highest ever until now. At this time last year the stock was around 16 lakh tonnes. The stock will grow further as boro procurement continues, but not by much, as government warehouse capacity is about 22.5 lakh tonnes, officials said.

Officials said the government uses its stock to control the market, distributing grain through open market sales (OMS), the food-friendly programme and other social safety net programmes. The larger the stock in its hands, the more effectively the government can influence the market. It builds the stock by procuring paddy, rice and wheat from the domestic market and by importing, and the largest share of domestic procurement comes in the boro season.

The boro procurement drive runs until 31 August. Whereas in other years targets were not met even after repeated extensions, this time the government is close to its target with a month still to go. According to Directorate of Food data of 27 July, a total of 14,28,151 tonnes of paddy, parboiled and atap rice has been procured in boro: 3,76,992 tonnes of paddy, 11,47,684 tonnes of parboiled rice and 35,454 tonnes of atap rice.

Officials said buying enough paddy and rice domestically greatly reduces dependence on imports and saves foreign currency. Rice prices have risen slightly and are now holding steady. The food-friendly programme starts in mid-August, after which officials expect rice prices to fall.

Private rice imports have also been opened, and the Ministry of Food has already invited applications from interested parties, which is also expected to help bring the rice market to a tolerable level.

Directorate of Food Director General Md Abul Hasanat Humayun Kabir told Jago News: "We have built up a good stock. We will procure more than 14 lakh tonnes in boro. This volume of paddy and rice procurement is possible mainly because of the adviser's efforts. He is overseeing everything round the clock."

He said: "For the current fiscal year we have obtained government approval to import four lakh tonnes of rice at government level. We will decide on imports depending on the situation."

"The food-friendly programme will start on 15 August. Fifty-five lakh families will get 30 kg of rice a month at Tk 15 a kg. The programme will run until November. We think the rice market will then turn downward again," the director general said.

Abul Hasanat Humayun Kabir said: "In the period after boro until aman, prices rise a little. We are now a buyer in the market, and boro procurement is under way. Taken together, the rice price has risen a little and stopped there. I hope prices will fall from mid-August."

Md Moniruzzaman, director (procurement division) of the Directorate of Food, told Jago News: "Our stock has crossed 20.5 lakh tonnes. Since independence, government food grain stocks have never reached this level. Boro procurement is going on, and another two lakh tonnes of rice will come in."

He said: "We are setting a record in boro procurement too. More than 14.25 lakh tonnes of boro paddy and rice have already been procured, and this will rise further."

Under a decision of the Food Planning and Monitoring Committee (FPMC) meeting on 9 April, the targets for the current boro season were set at 3.5 lakh tonnes of paddy, 14 lakh tonnes of parboiled rice and 35,000 tonnes of atap rice. The procurement price was fixed at Tk 36 a kg for paddy and Tk 49 a kg for rice. Procurement began on 14 April and runs until 31 August.

Directorate of Food officials said that, breaking all past records ahead of schedule, 26,942 tonnes of paddy more than the target have been procured, and rice procurement is also close to target. The Ministry of Food has allowed an additional 50,000 tonnes of parboiled rice and 15,000 tonnes of atap rice to be procured in boro. Of 14.5 lakh tonnes of parboiled rice, around 11.5 lakh tonnes have been procured so far.

In past years boro procurement of paddy and rice was limited to at most 14 lakh tonnes, though targets were higher. In recent years rice was procured close to target, but not even half the paddy target could be bought, according to the Directorate of Food.

Director Moniruzzaman said: "I hope we will meet our boro target well before the deadline. So we are thinking of ending the boro procurement drive in mid-August."

To keep the rice market stable, the government has opened the door to private rice imports. It has already said that the target for private rice imports in the current fiscal year is five lakh tonnes. On 23 July the Ministry of Food issued a notice inviting applications from interested organisations for private rice imports. The deadline is 7 August. Applications must be made online through the private rice import application link on the procurement and supply section of the ministry's website, www.mofood.gov.bd; no applications will be accepted in person. Organisations that applied before the notice was issued must apply again, the ministry said.

Source: Jagonews24. First published in Bengali on The Agro News.