February 22, 2012

 

 

For the current fiscal year, Bangladesh has cut its food grain import target by 29%, banking on an increased local output of rice and a favourable buffer stock.

 

The import of rice and wheat stand at 12 lakh tonnes, dropping from the original plan of 17 lakh tonnes for the on-going fiscal year ending in June, Ahmed Hossain Khan, director general of Directorate of Food, said on Sunday (Feb 19).

 

"We have reduced the target to import rice in view of its increased domestic production and increasing internal procurement levels," he said. "It will also reduce our dependence on imports and save foreign currencies."

 

The rice import target has been slashed by 43% to 4.5 lakh tonnes while the wheat import plan has been reduced by 17% to 7.5 lakh tonnes.

 

The revision came at a time when widening trade imbalance, resulting mainly from rising fuel imports bills by the government, puts pressure on foreign exchange reserves.

 

Rising import costs for fuel has increased pressures on the government in financing the budget.

 

Khan said the quantity of rice that has been slashed from the import plan would be bought from the domestic market.

 

"We have increased our target to buy rice from the local market," said the official, adding that the cost of procuring rice from the domestic market will be lower than imports.

 

According to new plans, the government will buy 13.5 lakh tonnes of rice from the local market, shifting from its original plan to buy 10.5 lakh tonnes, for the fiscal year, said Khan.

 

Officials of the food department said the government has already received 4.5 lakh tonnes of rice in the first half of the current fiscal year. No more rice will be imported this fiscal year.

 

But wheat imports will continue until it reaches the revised target of 7.5 lakh tonnes. The import of wheat stood at four lakh tonnes in July-December, according to food department data.

 

A favourable buffer stock carried over from the previous fiscal year provides further scope to reduce imports, said officials.

 

Presently, public go-downs remain almost filled up with food grains of around 15 lakh tonnes because of increased domestic procurement and an entry of rice against the contracts signed last year.

 

The government imported 22 lakh tonnes of rice and wheat in fiscal 2010-11, according to the department of food.