Rice boom causes problems for BangladeshJune 9th, 2009 - 1:47 pm ICT by IANS
Dhaka, June 9 (IANS) The surplus production of rice this year in Bangladesh, which is prone to foodgrain shortage and calamities, has raised the confidence of farmers and the government but also caused pricing and storage problems, media reports here said Tuesday.
Estimated at 32.4 million tonnes, the current fiscal this month-end will mark the highest production of rice, the staple diet of the country’s 153 million population. The average requirement is about 30 million tonnes.
The production will be 6.12 percent higher than last year, when the country, reeling in the aftermath of cyclone Sidr, was desperately importing rice and the government was prompting people to consume more potatoes to meet the rice shortage.
However, The Daily Star newspaper said the high yield was not good news for the farmers.
“Such a surplus has now turned rather problematic for farmers who allocated more of their lands to rice production, encouraged by the staple’s high prices in the previous two years.
“It is a clear indication of farmers’ response to high prices of rice. They produced more this year, encouraged by the high prices for their produce in the last two years,” said Mahabub Hossain, executive director of BRAC, the country’s largest NGO.
The farmers have now been hit by a decline in prices. Analysts say low prices might dampen prospects for rice plantation in the next fiscal.
“It appears that there is a surplus supply of rice and it’s dampening the prices. One clear indication it gives is that the farmers will cut their production next year,” said Hossain, also a former director general of the Bangladesh Institute of Development Studies (BIDS).
Although jubilant about the highest-ever rice production, the government and its agencies admit to having inadequate storage capacity.
Plans are afoot to raise temporary storage facilities to prevent destruction of the crop.
The bumper crop has also raised high expectations for continuing policy support for agriculture in the national budget for fiscal 2009-10, the newspaper noted.
Earlier this month, cyclone Aila hit Bangladesh, jeopardising the prospect of a good Aman rice cultivation. Tens of thousands of farmers in the south-western coastal region are in trouble following the storm.
- China raises rice purchase prices - Feb 02, 2012
- Punjab, Haryana procure record 200 lakh tonnes of wheat - May 11, 2012
- West Bengal to set up Kisan Mandis - Mar 27, 2012
- Assam hopes for record rice, jute production - Jun 22, 2012
- Mukherjee says inflation not due to food shortage - Mar 07, 2010
- Punjab rues inaction on increasing food grain storage - Jul 16, 2011
- India to produce 232 mn tonne foodgrains - Feb 09, 2011
- Increase milk, vegetables production to curb food inflation: Thomas - Oct 30, 2011
- Bangladesh wants to import rice from India - Jul 13, 2011
- Food production may surpass target: Pawar - Sep 14, 2011
- Bengal ration shops to continue potato sales till prices fall (Lead) - Jul 25, 2012
- Potato to be sold through ration shops in Bengal - Jul 25, 2012
- Volatile supply from India may hit Bangladesh potato price - Oct 30, 2010
- Punjab seeks PM's intervention on food grain storage - Apr 06, 2011
- Bangladesh criticizes India's ban on cotton export - Mar 08, 2012
Tags: 30 million, bumper crop, calamities, cyclone, daily star, dhaka, high expectations, high yield, inadequate storage, ngo, rice plantation, rice production, sidr, staple diet, storage capacity, storage facilities, storage problems, surplus production, surplus supply, temporary storage