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CPD suggests fixing of boro paddy prices

Star Business Report
The Centre for Policy Dialogue (CPD) yesterday suggested the government fix the procurement price of boro paddy at Tk 15 a kilogram and rice at Tk 25 a kilogram to encourage farmers to allot more lands to rice cultivation.
The private research organisation also said the government should announce the price immediately to influence farmers' decision on boro plantation.
CPD made the recommendations citing various global rice outlooks for 2010, which show bleak prospects.
Apprehensions on drops in output, declaration by countries such as the Philippines to buy rice from the global market and restrictions on exports by India now influence global rice prices, observed CPD.
It fears Bangladesh will have to import rice at high costs in case of production shortfalls next boro season.
"Farmers in Bangladesh are responsive to prices, policies and technologies," said Uttam Deb, head of research division of CPD, at a discussion at CIRDAP on the challenges and actions to achieving the 2010 boro production target.
"A declaration of procurement prices will bring positive outcomes, taking the global scenario into account."
Agriculture Minister Matia Chowdhury and Fortner State Minister for Agriculture and Senior Joint Secretary of Bangladesh Nationalist Party Mirza Fakhrul Islam Alamgir spoke at the dialogue, where parliamentarians, agriculturists, economists, representatives of farmers' organisations and bureaucrats were present.
CPD Chairman Prof Rehman Sobhan chaired the programme.
CPD's suggestion for the declaration of government procurement price comes as fanners prepare their lands for the current boro season.
Despite helping the country achieve record boro rice production at 1.78 crore tonnes in the immediate past boro season, farmers - mainly small and marginal -- failed to reap the benefits of their labour and investment due to a decline in prices on the domestic market.
For the current boro season, the government has set a target to produce 1.9 crore tonnes of rice on 48 lakh hectares of land.
CPD, referring to farmers' wounds, said farmers may be reluctant to cultivate boro this season.
Farmerswill not cultivate unless they get margins,” said Alamgir.
"Already many farmers are shifting from rice to other cash crops to make profits. If we want our farmers to remain in agriculture, we will have to give them adequate incentives,” he said.
Mahabub Hossain, executive director of BRAC, said the government should not only think about feeding consumers at low* prices, but also about ensuring fair prices for growers.
If farmers do not receive fair prices for paddy and are reluctant to cultivate, we may have to buy rice as high as Tk 50 a kilogram due to high prices on the inter-national market," he said.