Rice stock still scarce
Despite taking aggressive methods to import rice in the last three months, the federal government has so far didn't replenish the country's depleting grain shares.
The existing stock of food grain reaches its lowest within the last few years.
Both cabinet committee on financial affairs and buy approved several proposals in the past three months to import a complete of 15.5 lakh tonnes of rice under government-to-government (G-to-G) arrangement and through international tenders.
The latest proceed to import rice came yesterday, when the two cabinet committees approved two proposals to import 1.5 lakh tonnes of rice from India.
During yesterday's cabinet meetings, chaired by Finance Minister AHM Mustafa Kamal, the cabinet committee upon economic affairs approved the meals department's proposal to import a single lakh tonnes of rice from Indian state-owned National Federation of Farmer's Procurement, Processing and Retailing Cooperatives India (NACOF).
The rice would be imported under a G-to-G basis.
Meanwhile, the cabinet committee about purchase approved another proposal from the food department to import 50,000 tonnes of non-basmati boiled rice from India's M/S PK Agri Website link at the expense of Tk 174.66 crore via an international tender.
The cost of rice would be around $411.93 per tonne. With yesterday's move, the government has so far taken the initiative to import 15.5 lakh tonnes of rice. In February, split agreements were signed to import 4 lakh tonnes of rice, incorporating 3 lakh tonnes through foreign tenders and one lakh tonnes from India under a G-to-G arrangement.
On March 3, the federal government took the initiative to import 5.5 lakh tonnes of rice through an international open tender.
To expedite this import, the Economic Affairs Committee approved a proposal to shorten the bidding method from 42 times to 10 or faster.
On March 10, the federal government approved three proposals to import a complete of 3.5 lakh tonnes of rice from India, Thailand and Vietnam under state -to-state arrangements.
The purchase committee then approved two even more proposals with each relating to the import of 50,000 tonnes of rice on March 24 and March 31.
Throughout a press briefing yesterday, the financing minister explained that the government approved the proposals to import rice in amounts that are required simply by the country.
"However when a supplier does not provide the shipment regularly, we change it and proceed for another source," Kamal said, adding that the meals ministry is aligned with the agricultural ministry to choose how much rice the united states requires.
The decisions are taken predicated on the country's current requirement together with keeping the next harvest in mind.
"We won't purchase more than what is required because that'll be harmful for native farmers and we won't buy fewer either so that the buyers don't suffer," Kamal said.
Previously April 4, the financing minister informed during a parliament program that the federal government aims to import one million tonnes of rice this season to make sure food security.
He as well said that the government had allocated satisfactory funds found in the budget to this end.
"We have previously finalised agreements to import five lakh tonnes of rice, which 1.5 lakh tonnes has been imported and the rest of the is on the way," Kamal said while presenting a written report on budget execution in the first six months of the existing fiscal.
On the other hand, the rice imports have yet to get momentum.
The government has up to now managed to import only 2.16 lakh tonnes of rice from July 1 this past year to April 5 this year, based on the Food Department.
The proposals approved to import rice under a G-to-G basis possess yet to be finalised while those proposals possess not been placed prior to the purchase committee.
Foodstuff Secretary Mosammat Nazmanara Khanum could not be reached for a good comment in this regard despite repeated attempts by enough time this report was filed.
Rice and wheat shares at general public storages dipped to 4.88 lakh tonnes, which 3.99 lakh tonnes was rice by April 5, data from the meals ministry shows.
On July 1 last year, the country's food stock stood at 11.88 lakh tonnes although it was 16.74 lakh tonnes on July 1, 2019.
The stock started falling in June last year as distribution beneath the social back-up and other government programmes continued despite sluggish procurement.
Farmers and millers refrained from selling meals grains to the meals office at the government-fixed rates while the costs were soaring.
An increase on distribution of cereal among those damaged by the Covid-19 pandemic and recurring floods also contributed to the drop on stocks, food ministry officials said.
The depleting stock and the failure to procure satisfactory levels of paddy directly from growers forced the federal government to pay cash under its Test Comfort and Food for Do the job programmes.
More LNG purchase approved
The cabinet committee on purchase also approved a proposal to acquire another 33.6 lakh MMBTUs of liquified gas from the spot market.
The proposal, submitted by Petro Bangla, a corporation of the energy and mineral resources division, was to get the LNG from AOT Trading AG, Switzerland, at a price of Tk 243.30 crore.
Each MMBUT will definitely cost $l7.28.
Finance Minister on support for low-income people
Asked in what steps would be used for the low-income people who lost their jobs during the new countrywide lockdown, the financing minister assured that important and timely measures will be taken up to ensure the safety and security of the people."
However, the financing minister did not mention any such part of particular.
"Another wing of the federal government works on it plus they can inform about any of it," he added.
When it was mentioned that all stimulus packages announced last year were implemented through the finance ministry, Kamal said that the prime minister fixed those packages and the ministry implemented them on her behalf behalf.
"The ministry is wonderful for the people's welfare and do things so that people of the country are not harmed," he added.
