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Advisers propound theories behind rice price spirals

UNB, Dhaka
Agriculture Adviser Dr CS Karim and Foreign Adviser Dr Iftekhar Ahmed Chowdhury came up with various theories behind the rising prices of rice despite a bumper Boro harvest as journalists caught them offguard at the Foreign Ministry yesterday.
As the advisers emerged from a meeting with the Russian and Moroccan ambassadors on procurement of fertiliser, they were asked why the rice prices did not come down and whether the government, as such, would import food-grains.
Foreign Adviser Dr Iftekhar said Boro and Aman production this year would hopefully exceed 30 million tons. In spite of this, he said, the government wants to build up a strategic reserve of food-grains.
"The government food policy' has been a great success and it has been appreciated at home and abroad.”
Asked about import of rice from India following the deals signed earlier, Agriculture Adviser Dr CS Karim said rice is coming from India. When pointed out that it did not come at the crisis time, he said, "It is a continuous process."
Echoing his colleague s observations, CS Karim said the government needs to have a strategic reserve of food to support programmes like Food for Works and GR and meet any exigencies.
Asked why the rice prices did not come down after a plenteous Boro harvest, belying the hope given to the commoners, the adviser said for the last few days unrest has been noticed on the market, which requires analysis.
"If there is raining, supply of rice to market slows down. It results in slight ups and downs,” Karim said, adding, "You will have to see the longterm impact on the market."
Bringing forth the demandsupply theory, the agriculture
advisor said there are some factors that work on the market prices beyond demand and supply of goods. “We arc trying to keep the prices within the purchasing capacity of the general people," he said.
Asked whether it is a failure of the government to contain the rice prices, the adviser did not give any straight reply. 1 Ie said food security does not depend on prices only. "Despite having money in pockets, sometimes people cannot buy food."
Asked if people have money in their pockets, Karim said the government has launched a 1 0 0 - d a y employment programme so the people could buy their food.
Being pressed whether or not the price of rice will come down. Karim posed a question: what does economics indicate? It is not the 10 advisors' job alone, the journalists also need to pay visit to the market places and find out the reasons behind the soaring process.
Intervening, Foreign Adviser Dr Iftekhar said, "Indeed, farmers are getting the prices and it will work as incentive to expand agricultural production."
When a correspondent stated that money is going to middlemen and syndicates, Karim said much of the procurement money goes to farmers.
Giving statistics, he said die government procures 1.75 crore tons at Tk 28 per kg. This means Tk 10,000 crore goes to villages and it would help build food-security system.
Meanwhile, Finance and Planning Adviser Dr Mirza Azizul Islam yesterday said it is not possible to stabilise the local market by importing food at higher prices from internationalmarket.
At a function at the Bangladesh-China Friendship Conference Centre, the adviser suggested building up alternative system alongside the traditional food stock.