Govt bids to buffer soaring price effect

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The government yesterday decided to form a new high powered core committee, headed by the chief adviser (CA), to cushion the effects of soaring food prices, as public discontent over the issue has been rising.

The committee, initiated at yesterday’s weekly cabinet meeting, will meet tomorrow to discuss several safety-net measures for fixed and low-income group people, to be implemented in the upcoming months, said Press Secretary to the CA Syed Fahim Munaim, at a news briefing.

“There is no shortage, but it is a matter of purchasing power for the fixed-income and lower-income groups,” said Fahim adding, “That’s why we are looking at income support measures.”

The measures include continuing and expanding open market sales (OMS) and vulnerable group feeding (VGF), starting new food for work programmes, and more intensive food imports.

The committee will also look into long term solutions, as the high prices are likely to continue, said Fahim.

He said the government is also discussing rationing, the specifics of which the new committee will thrash out tomorrow.

Fahim however said the government is looking into work for food programmes, ‘because people sometimes become dependent on state rations’.

Currently 70 percent of the population has VGF cards, and the government recently extended the duration of OMS operations to 5 months from its originally planned duration of 2 months, while it is looking to extend the timeframe even further. OMS allocations might also be increased, said Fahim.

Ensuring food supply will also feature prominently among the new committee’s talking points, with the committee looking to discuss an ‘advanced procurement plan’ as a precautionary measure against future shortages.

The government is still negotiating with India to procure 5 lakh tons of rice, which has already started to roll in.

The composition of the committee was yet to be finalised at the time of filing this report last night, which is to comprise the food, commerce, and agriculture advisers along with representatives from other agencies, including Bangladesh Rifles.

Substituting rice with potato for staple, which just had a bumper harvest, was also suggested during the cabinet discussions yesterday, but the government is still looking for ‘more realistic solutions’, said Fahim.

Recently, a number of advisers suggested that people make ‘good use’ of a bumper potato harvest in the face of rising rice prices. Prices of coarse rice have gone up by 67 percent over the last 12 months, according to a report by the Bangladesh Institute of Development Studies (BIDS).

Fahim said the government is also optimistic of a good upcoming boro harvest, and will stock up to ensure future supply.

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