Special Correspondent :
About 5.20 lakh rural people fell below the poverty line and many were at high risk of falling into poverty due to the ongoing rice price volatility, reveals a study report.
“The current rice price volatility has left a dire impact on the country’s rural population. It has reduced their real income and household spending pushing many of them into poverty,” said the study conducted by the South Asian Network on Economic Modeling (SANEM).
Dr Selim Raihan, Executive Director of the SANEM, reveled the findings of the study at a programme held at BRAC Center Inn in Dhaka on Saturday.
“Rice price has increased over 35 per cent in the last one year and its prices continue to rise. The price volatility directly affects most of the household, as it is the main staple food for them,” said Selim Raihan.
He said it also directly affect on the country’s overall poverty headcounts because rice accounts for 25 to 50 per cent expenditure of rural households. “Even a temporary increases in rice prices reduce their real income and household spending,” he added.
“A majority of rural people lives close to the poverty line and many of them are falling into poverty whenever rice prices fluctuate,” said Dr Selim Raihan quoting findings of the study.
He suggested to the government for formulating a comprehensive ‘rice policy’ to make balance the rice production, import and supply of the commodity in the markets. “It could help avert unusual fluctuation of rice prices in the market,” he added.
Dr Selim Raihan also stressed the need for disseminating accurate market information on production, import and consumption to help produce rational decisions by the government and stabilize prices in a market-friendly manner.
The domestic retail rice prices witnessed record highs following sudden floods across the country that wiped out around 700,000 tonnes of rice crops forcing the government to undertake import of rice to build reserves and cool local prices.
Bangladesh has imported a record quantity of rice during the last three months. The import was the five times higher than the accumulate import of the last fiscal year, according to the SANEM. But the consumers said they are yet to get respite from high rice prices despite the government move to import the grain in bulk following domestic shortage.
Per kilogram fine rice was selling at Tk 60 to Tk 70, medium grade Tk 55 to Tk 60 and course rice at Tk 45 to Tk 48 on Saturday.
“Rice is still trading high at the city markets, although the government went for big imports from neighbouring countries,” Prof Shamsul Alam, Adviser of Consumer’s Association of Bangladesh told The New Nation.
He said, the recent rice price hike dealt a big blow to the middle income and lower income groups of people, as rice is a major staple food for them.
