Government price support to boro farmers
Photo: Shafiq Islam / Driknews
Bangladesh's main paddy crop Boro, which will be harvested soon, is expected to yield record high production if favourable weather continues up to May '08. It is apprehended that the price of Boro paddy and rice may go down too low and cause loss to the farmers if government does not purchase huge quantity in the coming harvest season. We know that for the sake of higher production Bangladesh has been subsidising imported and locally produced fertiliser heavily as because the peasants have low purchasing power. Frequently, news published in daily newspapers that fertilisers were being smuggled out to India and Myanmar owing to very low price over here. It is reported in newspapers that per metric ton urea fertiliser was being sold at Tk.3, 000.00 to peasants whereas the import price was Tk.15, 000.00. Similarly, government has been selling imported diesel at heavily subsidised price as well, which is lower than the price in Indian market. As a result, a large quantity of imported diesel is also being smuggled out to India. In this case also government has been supporting the peasants as they possess very low purchasing power. In this situation the purchasing power of the peasants is required to be enhanced. Providing supporting price for Boro paddy and rice is a better way. Government should purchase highest amount of rice and paddy from the peasants, may be @Tk.23.00 per kg. for rice and build a buffer stock. This rate is much higher than the last fixed price of government procurement. When the peasants get higher return by selling paddy or rice they will be able to purchase fertiliser and diesel at a less subsidised price as well. In practice, peasants cannot hold large quantity of paddy due to their family needs and low storage facilities. State price support will strengthen the peasants' financial position. At the same time the government should reduce the huge subsidy on fertiliser and diesel increasing the selling price to that in Indian. This will reduce smuggling to a great extent. Only depending on BDR for curbing smuggling is not enough. Moreover, when government will have sufficient stock of rice it will enhance its capacity to stabilise price level of rice throughout the year in Bangladesh. It will also help the government to reduce huge subsidy. The government should act promptly as harvesting of Boro paddy will commence on second week of April'08 and continue up to May'08.
For all latest news, follow The Daily Star's Google News channel.
Comments