Food ministry plans rice sale to rural poor for less than OMS

The food ministry is considering distributing rice among ultra-poor rural people at a price lower than the open market sales (OMS) rate of Tk 15 each kilogram, to clear its stocks, said two senior officials yesterday.

"We are planning to submit a proposal to distribute rice among the poorest at union level," Foiz Ahamed, director general of the directorate general of food, told The Daily Star.

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He shared the plan after a meeting at the food ministry in the capital. Ahamed said his office will propose to fix price between Tk 10-11 each kilogram under the initiative to sell rice during March and April and to sell 30 kilograms of rice a month among the poorest at grass roots level.

The food office took the initiative as it sits on a stock of 14.50 lakh tonnes of grains including 10.69 lakh tonnes of rice. However it can not reduce the stock fast due to slack demand, resulting from low prices of the cereal in the market.

The government last month reduced prices of rice by 25 percent to Tk 15 per kilogram and wheat flour by 10 percent to Tk 17 for OMS to cut part of the large stocks, which was second in four months.

Officials said OMS price cut and distribution was necessary to create space in the warehouses to purchase rice in the upcoming boro harvesting season, and to trim down losses as the quality of rice would deteriorate if remained stored.

Rice is planned to be sold among the ultra-poor at grassroots by reviving the Fair Price Card (FFC) scheme introduced by the government earlier. The government issued 67 lakh cards to distribute rice lower than market price, said a senior official of food ministry, seeking anonymity, adding that the number of cards may be increased up to 1 crore during lean period of the year.

Asked if the prices of rice and paddy will fall because of the government sales, the official said it would not be possible to give support to farmers without clearing the stocks.

"Farmers are unlikely to suffer. We are also planning to export coarse rice so that the domestic market continues to register demand," he said adding that the food ministry plans to export 1 lakh tonnes of rice.