Editorial
Using the boro crop to bring down prices
Calls for a well-thought-out strategy
HOW an intrinsic improvement in the projected output and availability of rice can start impacting positively on the staple market has been proven by the firm predic-tions of bumper boro crop. The private sector has begun releasing their old stocks. The wholesale prices are al-ready tapering off even though any marked fall is yet to be reflected in the retail market.
The indications from different sources including from growers' level and government agriculture authority point to a record boro crop in prospect if the coming three weeks pass off without any big natural onslaught intervening.
Given the size of yield per acre, we are talking of scal-ing up the boro production target to 18-20 million tonnes. There are some underlying messages of the boro crop success on which to model our future rice productivity drives. It is worthwhile to note that 4.9 million hectares of land came under boro plantation exceeding the target of 4.5 million hectares. The important feature is the record 1.03 million hectares of land brought under hybrid plan-tation, the output of which is more than four times that of the traditional strains. Hybrid plantation is being con-tinuously researched on to keep the fertility of land un-harmed. There is a prospect for evolving plants that will keep above a certain height of water.
The farmers' determined perseverance to make up for Sidr and flood losses, supportive measures of the gov-ernment through providing special irrigation connections and HYV seeds contributed to boro success.
Now what we do with good boro and wheat crops will largely determine how favourable supply-demand equa-tions in the market and the government's capacity for intervention in the market will be. The government pro-curement drive for boro paddy at Tk 18 and rice at Tk 28 has already got underway. The cost price of producing one kg of rice is calculated to be Tk 21-22; so, the pro-curement price seems realistic. However, constant moni-toring of market prices would be necessary for the sake of any upward adjustment of the procurement price.
Given the possibility of middlemen's intervention at various stages, there is a dire need for vigil on the entire procurement network just as in the case of distribution constant monitoring will be necessary.
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