The New Nation - Internet Edition

A GOOD food stock available with the government adds to the food security of the country. The government can intervene in the market with open market sale (OMS) operations, whenever aberrations are noted in market prices of rice by releasing food from its stocks at fair prices. OMS are very useful for the poor and help stabilise the prices of food grains. Large stocks also come in aid of developmental activities in rural areas under food for works (FFW) programmes. The poor are significantly served by such programmes.

The government had to build up a good stock of food grains to meet any situation, specially after last year's food gap created by natural calamities and the difficulties faced in importing food grains from international markets at unusually high prices. Thus, a target of internal procurement of over 12 lakh tonnes of food grains was set after the last bumper Boro harvest. But the actual procurement was nearly 7 lakh tonnes and the procurement target was missed by a wide margin.

It was analysed that the procurement prices of the Boro rice were not attractive enough to the farmers. The latest procurement prices set for Aman rice are also found not attracting farmers properly. Although the procurement prices mark increase over those offered in recent years, it needs taking into account whether the latest prices would sufficiently create incentives for farmers to sell grains to government procurement centres. Unlike in other years, farmers this year had to absorb significant additional costs of production by purchasing inputs such as seeds, fertiliser, diesel and insecticides at substantially high prices. The procurement prices may have to be reconsidered to make farmers to sell grains at the government procurement centres.