The Domestic Rice Procurement Program In Bangladesh – An Evaluation FMRSP

Working Paper
Working Paper No. 13

Foodgrain procurement, especially the rice procurement program, has a fairly long history in the region comprising Bangladesh. However, price support is of more recent origin. For a long time, the primary objective of the procurement program was to secure enough foodgrain to feed the Public Foodgrain Distribution System (PFDS). Since 1975, price support became an important objective, although feeding PFDS remained an important concern. The objective of this study is to make an evaluation of the domestic rice procurement program currently in place. However, no attempt has been made here to analyze the economic justification of the program, its budgetary implications or the choice of appropriate criteria for fixing the procurement price. The study, on the other hand, examines the nature and degree of participation by different groups such as farmers, traders and millers and the problems faced by them in the process of both paddy and rice procurement. Also, the study makes specific policy recommendations for improving the effectiveness of the current program on the basis of the information collected through field surveys in three selected districts (Bogra, Dinajpur and Naogaon) of Rajshahi division of northern Bangladesh, where more than 80 percent of national rice procurement takes place. In fact, the procurement survey was carried out in the 1998 Boro season at and around ten Local Storage Depots (LSDs), where farmers, traders, millers, sellers at LSDs and LSD officials as well as other government officials were interviewed. In total, 340 people were interviewed, of whom 160 were farmers of different categories, 60 were traders, 50 were sellers at LSDs, 50 were millers and 40 were LSD as well as other government officials.

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Date and language
Jan 1999
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