HIGHLIGHTS The overall food price situation in the country has raised serious concerns. Prices of essential food commodities especially rice has shot up even after good harvest of Boro crop.
Monsoon rainfall was less than normal by twenty percent which affected the planting of Aman crops and growing of Aus crops. Low level flooding affected standing crops to some extent but damages were less due to quick recession of flood water.
The retail prices of food grain in the local market has increased significantly in the recent months and likely to increase further until the next harvest which starts November/December. Prices of other essential food commodities like wheat flour and oil have also gone up. The nominal prices of rice and edible oil are very close to the high food price year of 2008.
The Terms of Trade or food purchasing power of the poor agricultural wage labourers has declined since May 2010. However due to some wage adjustments it has not been as worse as 2008.
Remittances inflow declined for the last few months; reason could be job losses, salary decreases abroad and the return of migrants to Bangladesh.
Aman harvest is expected to be satisfactory with 13.5 million tons production target. Government is not planning to procure Aman rice from the farmers this year; instead commercial import will be increased to maintain stock.
In the recent quarter global prices of food grains particularly wheat showed a sharp increase. Good harvest of wheat next year in the main wheat exporting countries can lower the food grain prices.
To achieve 2010-11 domestic food grain production target of 36.53 million MT, significant improvement of yield and expansion of cultivation area is required. As Government is not planning to procure Aman rice from the farmers this year, sufficient import is required to maintain stock.