04 Feb 2011: Source: reuters // Reuters
By Ruma Paul
DHAKA, Feb 4 (Reuters) - Bangladesh's state grains buyer plans to increase the volume of rice and wheat tenders to speed up imports and build stocks in the face of record global food prices and analysts' fears of social unrest.
"We are thinking to raise the volume of grains in tenders," an official at the Directorate General of Food, who declined to be named, said on Friday.
The government is under increasing pressure to contain prices. Analysts say Bangladesh faces unrest if prices continue to rise, given that nearly 40 percent of its population survive on less than $1 a day.
"If possible, for wheat tenders we may ask for 100,000 tonnes instead of the earlier 50,000 tonnes. For parboiled rice we can seek 50,000 tonnes from an earlier 30,000 tonnes to cut time and build stocks as quickly as possible," the official told Reuters.
"If it is not possible, we will issue tenders for wheat and rice every week," he said.
U.S. wheat futures rallied to near 2.5-year highs on Friday as concerns mounted about yields from the U.S. winter wheat crop and boosted by stronger oil prices. [GRA/]
Soaring prices pushed Bangladesh's food inflation rate to 11.01 percent in December, the highest level in three years.
"Domestic markets are facing supply shortages despite bumper food production in the country in the last crop season," said Mustafa K. Mujeri, director general of the Bangladesh Institute of Development Studies.
"This is because growers, millers, retailers are trying to keep their stores full, hoping to make windfall profits when prices go further up. Consumers are also storing grains in panic fearing that prices may reach beyond their buying capacity," Mujeri added.
IMPORT PLANS
The government seeks to import 2.2-3.0 million tonnes of rice and wheat in the year to June, up from around 550,000 tonnes in the previous year.
Bangladesh, which suffered badly during the 2008 spike in global food prices, wants to build reserves of basic commodities such as wheat, rice, oils and sugar to avoid a similar situation.
The United Nations said on Thursday its food price index rose for the seventh month in a row to 231 in January, topping a peak of 224.1 in June 2008. It is the highest level the index has reached since records began in 1990.
Rice is the main staple for Bangladesh's more than 150 million people, and the government is set to sell more rice at subsided rate to the poor. Thousands stand in long queues for rice, and many go home empty-handed when supplies run out.
Although it is the world's fourth-biggest rice producer, Bangladesh has emerged as a major importer this year and is desperately looking for dependable sources for rice.
"The government is making frantic efforts to import rice and wheat to ensure food security," Ahmed Hossain Khan, director general of the state grains buyer, told Reuters.
"The government is also negotiating with Vietnam, Thailand and Cambodia for long-term deals to import rice as India, once the traditional supplier to Bangladesh, maintained its ban on wheat and rice (exports)," Khan said.
The government has reserves of around 850,000 tonnes of rice and wheat, and 125,000 tonnes are at ports while another 125,000 tonnes are due to arrive soon, a food and disaster management ministry official said.
A Bangladeshi delegation is now in Bangkok for negotiation to import up to 200,000 tonnes of Thai parboiled rice, while talks are continuing with India to buy 300,000 tonnes of rice.
"So we have nothing to fear about reserves," the government official said.
(Reporting by Ruma Paul; Editing by Anis Ahmed and Jane Baird)
http://www.trust.org/alertnet/news/bangladesh-to-speed-grain-buys-amid-record-prices/
By Ruma Paul
DHAKA, Feb 4 (Reuters) - Bangladesh's state grains buyer plans to increase the volume of rice and wheat tenders to speed up imports and build stocks in the face of record global food prices and analysts' fears of social unrest.
"We are thinking to raise the volume of grains in tenders," an official at the Directorate General of Food, who declined to be named, said on Friday.
The government is under increasing pressure to contain prices. Analysts say Bangladesh faces unrest if prices continue to rise, given that nearly 40 percent of its population survive on less than $1 a day.
"If possible, for wheat tenders we may ask for 100,000 tonnes instead of the earlier 50,000 tonnes. For parboiled rice we can seek 50,000 tonnes from an earlier 30,000 tonnes to cut time and build stocks as quickly as possible," the official told Reuters.
"If it is not possible, we will issue tenders for wheat and rice every week," he said.
U.S. wheat futures rallied to near 2.5-year highs on Friday as concerns mounted about yields from the U.S. winter wheat crop and boosted by stronger oil prices. [GRA/]
Soaring prices pushed Bangladesh's food inflation rate to 11.01 percent in December, the highest level in three years.
"Domestic markets are facing supply shortages despite bumper food production in the country in the last crop season," said Mustafa K. Mujeri, director general of the Bangladesh Institute of Development Studies.
"This is because growers, millers, retailers are trying to keep their stores full, hoping to make windfall profits when prices go further up. Consumers are also storing grains in panic fearing that prices may reach beyond their buying capacity," Mujeri added.
IMPORT PLANS
The government seeks to import 2.2-3.0 million tonnes of rice and wheat in the year to June, up from around 550,000 tonnes in the previous year.
Bangladesh, which suffered badly during the 2008 spike in global food prices, wants to build reserves of basic commodities such as wheat, rice, oils and sugar to avoid a similar situation.
The United Nations said on Thursday its food price index rose for the seventh month in a row to 231 in January, topping a peak of 224.1 in June 2008. It is the highest level the index has reached since records began in 1990.
Rice is the main staple for Bangladesh's more than 150 million people, and the government is set to sell more rice at subsided rate to the poor. Thousands stand in long queues for rice, and many go home empty-handed when supplies run out.
Although it is the world's fourth-biggest rice producer, Bangladesh has emerged as a major importer this year and is desperately looking for dependable sources for rice.
"The government is making frantic efforts to import rice and wheat to ensure food security," Ahmed Hossain Khan, director general of the state grains buyer, told Reuters.
"The government is also negotiating with Vietnam, Thailand and Cambodia for long-term deals to import rice as India, once the traditional supplier to Bangladesh, maintained its ban on wheat and rice (exports)," Khan said.
The government has reserves of around 850,000 tonnes of rice and wheat, and 125,000 tonnes are at ports while another 125,000 tonnes are due to arrive soon, a food and disaster management ministry official said.
A Bangladeshi delegation is now in Bangkok for negotiation to import up to 200,000 tonnes of Thai parboiled rice, while talks are continuing with India to buy 300,000 tonnes of rice.
"So we have nothing to fear about reserves," the government official said.
(Reporting by Ruma Paul; Editing by Anis Ahmed and Jane Baird)
http://www.trust.org/alertnet/news/bangladesh-to-speed-grain-buys-amid-record-prices/
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