Kazi Zahidul Hasan :
People are yet to get respite from high rice price despite the government’s move to import the grain in bulk following domestic shortage and harvesting of new Amon crops.
The current rice price volatility, however, left a dire impact on the country’s poorest population as it has reduced their real income and household spending on other nutrition.
Rice price instability would also directly affect the country’s poverty headcounts, said economists.
According to market data of Trading Corporation of Bangladesh (TCB), per kilogram fine rice was selling at Tk 56 to Tk 66, medium grade Tk 48 to Tk 55 and coarse rice at Tk 42 to Tk 46 on Sunday.
Per kilogram fine rice was selling at Tk 46 to Tk 56, medium grade Tk 40 to Tk 45 and course rice at Tk 36 to Tk 40 a year ago.
“Rice is still selling high in the city markets although the government went for big imports from neighbouring countries,” Prof Shamsul Alam, Adviser of Consumer’s Association of Bangladesh (CAB), told The New Nation yesterday.
He said, the recent rice price hike dealt a big blow to the middle income and lower income groups of people, as rice is major staple food for them.
“People spend more than 60 per cent of their income on food. Even temporary increase of rice price reduces real income and household spending on other nutritious food, health, and education,” Prof Dr Mustafizur Rahman, Distinguished Fellow of the Center For Policy Dialogue (CPD) told The New Nation.
“Such an increase would cause more households to fall below the poverty line,” he warned.
Prof Mustafiz further said, the increase of rice price will reduce people’s real income and household spending on other nutritious food, health and education.
“The government should operate an elaborate system of food-based safety-net programme to protect the vulnerable people from the negative effect of food price hike,” he added.
The domestic retail rice price earlier reached record high following sudden floods that wiped out around 700,000 tonnes of rice crop forcing the government to undertake import of rice to build reserves and cool local prices.
In May, the government signed a memorandum of understanding with Vietnam to import up to one million ton of rice a year until 2022.
Bangladesh, the world’s fourth largest rice consumer, often buys parboiled rice from India, but despite ample supplies by its giant neighbour, it has turned to Vietnam thanks to twin floods this year.
“The recent rice price hike has directly affected the rural population who live close to the poverty line. Many are at high risk of falling into poverty whenever rice price fluctuates,” Dr Zahid Hussain, the World Bank’s lead economist in Dhaka Office, told The New Nation.
He said, “Rice price volatility directly affects most of the population. It matters for poverty reduction in Bangladesh”.
“The rice price increase will have direct impact on poverty headcounts,” apprehends Dr Zahid Hussain.
Both the economists also urged the government to adopt appropriate policies to stabilize rice price volatility to avoid adverse economic consequences arisen from the recent rice price hike.
