The New Nation - Internet Edition

Staff Reporter

The government will start Open Market Sales (OMS) of rice at subsidised prices again in September after procurement from the domestic market, end.

"We will go back to OMS, if necessary, on completion of the procurement of rice," Finance and Planning Adviser Dr AB Mirza Azizul Islam told newsmen yesterday. Asked about stopping of OMS, he said it's not practical to have procurement and OMS at the same time as the procurement price is higher than the OMS price.

"Procurement and open-market sales cannot go simultaneously," he said after a meeting with six Asian Development Bank officials at the planning ministry.

Aziz said the government buys rice at Tk 28 a kg from farmers and sells at Tk 25 on the open market. The Government may have to pay higher prices if the two continue together; the Adviser said explaining suspension of the OMS.

He said OMS was meant for low-income people to buy daily essentials at lower prices.

On price rise of rice, pulse, potato and some other essential commodities after the budget announcement, the Adviser denied any link between the announcement of the budget and soaring prices.

"There is nothing in the budget that may trigger a price hike. I don't see any reason for it," Aziz said.

He said, "The commerce ministry may explain if the prices of commodities have really increased."

On if inflation will go further up, the Adviser said inflation turned out to be a "worrying issue" for all countries.

"Inflations in India and Bangladesh are almost the same. The inflation rate is 20 per cent in Sri Lanka and 23 per cent in Vietnam," the Adviser said.

Mirza Aziz reiterated that inflation on a point-to-point basis exceeded double digit in Bangladesh but came down to 7.66 per cent in April. "The projected 9 per cent inflation is also a matter of concern for Bangladesh."