The interim government of Bangladesh has approved the procurement of 50,000 tonnes of rice from India to address the depletion of its food reserves and meet growing consumer demand amidst persistent inflationary pressure. The rice will support state-sponsored food distribution programs currently operating at full capacity to alleviate the effects of high inflation on consumers.

The Advisory Committee on Economic Affairs, led by Finance Adviser Salehuddin Ahmed, approved the proposal for this purchase during a meeting yesterday. Consequently, the food ministry will import the rice through M/S Bagadiya Brothers Private Ltd in India at $456.67 per tonne.

As of December 17, the food ministry reported a stock of 11.48 lakh tonnes of food grains, including 7.42 lakh tonnes of rice. For the current fiscal year, Bangladesh had imported 26.25 lakh tonnes of food grains, of which 54,170 tonnes were rice.

The government aims to distribute 20.52 lakh tonnes of food grains through various programs in fiscal 2024–25. As part of this effort, 8 lakh tonnes of rice will be procured locally during the Aman season, with a higher volume sourced during the Boro season in early 2025. Up to December 5, about 11.17 lakh tonnes of rice had been distributed under food distribution initiatives. In addition to rice, the government has approved the purchase of two cargoes of liquefied natural gas (LNG) and 90,000 tonnes of urea fertilizer to meet growing national demands.

The Ministry of Power, Energy, and Mineral Resources will procure LNG from M/S TotalEnergies Gas and Power Ltd in Switzerland, with one cargo priced at $14.25 per MMBtu and the other at $13.87 per MMBtu. Meanwhile, the industries ministry plans to purchase 90,000 tonnes of urea fertilizer through separate agreements with suppliers in Qatar and Saudi Arabia. The Trading Corporation of Bangladesh (TCB) will also procure 10,000 tonnes of lentils from Sheikh Agro Food Industries in Dhaka at Tk 95.40 per kilogramme. Additionally, it will secure 1.10 crore litres of soybean oil from City Edible Oil Limited in Dhaka at Tk 172.25 per litre.

Disclaimer: This image is taken from the Daily Star.