The New Nation - Internet Edition

The unusual price hike of food grains during the last two weeks has made responsible quarters to ponder as to whether a sort of rationing should be introduced to ensure the distribution of food grains and some other essentials at fixed prices with a view to bridling the hike.

Scarcity of food grains created in the wake of the two waves of big flood in August and September was by and large tackled by the government through the adoption of a number of measures including the opening of BDR markets where shopkeepers do not have to pay rent, and growers' markets where producers can sell produce directly without intervention of middlemen, and open market sale as and when needed.

Loss of standing crops caused by cyclone Sidr and exceptional price hike in international markets have turned the price situation unusual and call for urgent steps at least for the next few months leading to Boro harvests. Prices of fine quality rice was Taka 40 a kilo and coarse rice Taka 30 to Taka 35 a kilo in the retail markets of Dhaka city yesterday, about Taka 10 a kilo rise in a week.

The price level is more or less the same in India which is an exporter of rice, according to information gathered from different sources. Production loss of the Aman paddy crop due to two waves of flood and cyclone Sidr has created extra pressure on the market. This has also led to a situation when some people might resort to panic buying to meet their needs and thus further worsen the situation.

The government is continuing the operation of BDR markets and with those open sale of rice for which long queues are being noticed in different parts of the metropolis for the past few days. But prices are neither stabilising nor going down. Such a situation calls for special measures, and some economists and social workers call for considering the case of rationed distribution of essentials.

Rationing of food and some essentials was introduced in UK as well as the then Indian Sub-continent in the wake of World War II. Rationed distribution of rice, wheat and sugar was there on a regular basis in the urban areas of Bangladesh till the late eighties and periodically in rural areas till 1992. The system was abolished on the ground of the introduction of free market economy.

In urban areas almost all residents had ration cards against which essentials used to be supplied at subsidised prices on a weekly basis. There were networks of ration shops in all mahallas, lanes and bylanes. The system was a great safeguard for people of fixed income brackets. However, as subsidy for rationed goods had been gradually reduced ration shops had lost their attractions before their abolition.

West Bengal and some other states of India, however, still have rationing systems to serve the needs of people of limited income groups. According to a report, there is a network of 30,000 ration dealers in the state of West Bengal.

In Bangladesh, the very poor families are served through the vulnerable group feeding (VGF) programme which has now been expanded to cyclone and flood-affected areas. The VGF programme helps protect very poor families but has little impact on the price situation. OMS of rice and other essentials helps keep profiteering - taking advantage of scarcity - under check, but an even distribution of essentials to all families under stress is not possible through this system. This is because through OMS operations it is not possible for all families to purchase essentials.

Introduction of at least some sort of rationing of few essential items, for limited income group people has become a must for sustaining long term reforms of the present government. It will be a terrible mistake to rely on market forces for price control of essential food items. Even in many rich countries food subsidy is considered unavoidable for controlling price of essential food items. No use to be theoreticians, show political consideration.