Economic Reporter :
The government is likely to decrease allocations for the food sector by 7 percent in the budget for the fiscal year beginning July 1, according to finance ministry oficials.
For fiscal year 2021-22, the country’s total outlay for the food sector is expected to stand at Tk 17,900 crore, down from Tk 19,264 crore in the outgoing fiscal year.
Of the figure, the government plans to spend Tk 10,555 crore for procuring food grains, Tk 4,416 crore for the subsidy, Tk 2,250 crore for operational expenditure, and Tk 679 crore for developing the food sector, according to the latest projection made by the finance and food ministries.
The procurement target for 2021-22 has been estimated at 33 lakh tonnes of food grains. Of which, some 22 lakh tonnes of grains will be procured at a cost of Tk 5,500 crore from the local market and the 11 lakh tonnes with the remaining money will be imported. The food grains include 26 lakh tonnes of rice and 7 lakh tonnes of wheat.
The allocation for subsidy on the food sector is likely to go down by Tk 401 crore from Tk 4,817 crore allocated in the outgoing fiscal year. Usually, the government buys food grains at higher prices and sells them to the poor in the open market at lower prices. The loss is calculated as a subsidy.
The food grains distribution programme through the open market sale or OMS will continue in the first five months of the next fiscal year when the rice will be sold at Tk 10 per kg.
Former adviser to the IMF Dr Reza Kibria said the government should continue the food support programme to five crore people for the next six months, which may cost Tk 35,000 crore.
He said many lower and middle-class families are getting food aid during the Covid-19 pandemic. “Taking the experience from the past, the government should increase the food aid and cash assistance. For this, the food sector should be given importance in the upcoming budget.”
The government plans to sell about 15 lakh tonnes of food grains through the OMS in the new fiscal year.
Besides, food will be distributed through other programmes such as food for work and vulnerable group feeding (VGF) assistance.
The new budget for the 2021-22 fiscal year will be presented in the parliament on June 3.
