Govt to buy additional 1 lakh tonnes of rice

15 July 2010, 18:00 PM

Staff Correspondent

The government has decided to buy an additional one-lakh tonne of rice from the domestic market at Tk 28 a kg in this Boro season, officials at the food ministry said yesterday. The decision comes after the rice millers retracted from their earlier stance and agreed with the government to its rice procurement drive. Bangladesh Auto, Major and Husking Mill Owners' Association leaders yesterday held talks with Food and Disaster Management Minister Dr Abdur Razzaque at the ministry and assured him of continuing rice supply to the public warehouses. Earlier on July 1, the Food Policy Monitoring Unit (FPMU) decided to procure five lakh tonnes of rice from the domestic market, which was seven lakh tones less than the government's procurement target of 12 lakh tonnes during Boro season, due to price hike of rice. At that meeting, the food minister decided to give Tk 3 incentive per kg over and above Tk 25 to buy 2.37 lakh tonnes of rice from the millers who had agreements and were demanding a price rise, saying the market price was more. However, the association called strike on last Sunday demanding same incentives to the millers who had earlier supplied 2.63 lakh tonnes of rice this season. The same day the minister warned the rice millers of taking legal actions against them, including cancelling licences, if they do not comply with the agreements made with the government on rice supply. Following that warning, the millers called off the strike. Sources said the prime minister's office also asked the millers to continue rice supply to the government without causing any trouble. KM Layek Ali, convener of the association, said they would fully cooperate with the government in buying rice from the domestic market. The millers have already agreed to supply 30,000 tonnes of rice in addition to the previously agreed 5 lakh tonnes, Layek said, adding that he has asked all the millers to continue supply as per the agreements. He however said they again requested the food minister to consider providing Tk 3 incentives per kg of rice supplied by the millers earlier. The minister said he would take the issue to the FPMU, Layek told The Daily Star after the meeting yesterday. "However, supplying rice is not linked to the incentive," he said. Razzaque thanked the millers for withdrawing the strike and said the millers' problems would be addressed, says a food ministry press release. To the millers who said they couldn't mill rice because of electricity crisis, the minister said he would look into the issue.