Amid a critical depletion of food reserves and soaring inflation, Bangladesh has urgently turned to India to procure 50,000 tonnes of rice at a discounted rate of $456.67 per tonne. This move comes as the country grapples with one of its most significant food security challenges in recent years, exacerbated by inflationary pressures and natural calamities.
As of December 17, Bangladesh’s food grain reserves had plummeted to 11.48 lakh tonnes, with rice accounting for just 7.42 lakh tonnes. This is alarmingly low for a nation that relies heavily on rice as a staple food. The situation has forced the government to intensify both imports and domestic procurement to meet growing demand.
The newly secured rice from India will be distributed through state-sponsored food distribution programmes, which have been expanded to mitigate the impact of persistently high inflation on ordinary citizens. So far, 11.17 lakh tonnes of rice have been supplied under these programmes during the current fiscal year.
The rice will be imported from M/S Bagadiya Brothers Private Ltd in India, marking another instance of bilateral cooperation between the two nations. The agreed price of $456.67 per tonne reflects a significant concession, especially given the higher bids received in recent tenders. In November, the lowest bid for rice imports from India under Bangladesh’s tendering process was $477 per tonne, offered by Pattabhi Agro Foods, with other bids ranging up to $499.77 per tonne.
This latest purchase is part of a broader plan to import 26.25 lakh tonnes of food grains during the 2024-25 fiscal year. However, concerns remain about the country’s ability to sustain such heavy reliance on imports, especially as global food prices remain volatile.
The urgency to import rice has been driven by the devastating floods that ravaged Bangladesh earlier this year, destroying an estimated 1.1 million tonnes of rice. The damage has severely impacted domestic production, forcing the government to look abroad to fill the gap.
To bolster local reserves, the government plans to procure 8 lakh tonnes of rice during the ongoing Aman season and ramp up sourcing during the Boro season in early 2025. However, these efforts may not be sufficient to offset the damage caused by natural calamities and inflationary pressures. The food crisis is just one facet of a broader economic challenge facing Bangladesh. Inflation has pushed up the cost of essential goods, straining household budgets and the government’s ability to provide relief.
In addition to rice, the government has approved imports of two cargoes of liquefied natural gas (LNG) from Switzerland-based M/S TotalEnergies Gas and Power Ltd to address rising energy demands. One cargo is priced at $14.25 per MMBtu, while the other is slightly lower at $13.87 per MMBtu.
Furthermore, the government has greenlit the purchase of 90,000 tonnes of urea fertiliser from Qatar and Saudi Arabia to support agriculture. It has also directed the Trading Corporation of Bangladesh (TCB) to procure 10,000 tonnes of lentils at Tk 95.40 per kilogramme and 1.10 crore litres of soybean oil at Tk 172.25 per litre to stabilise domestic markets.
Minority Persecution in Bangladesh
Following the ouster of Prime Minister Sheikh Hasina on August 5, 2024, Bangladesh has witnessed a significant increase in violence against its Hindu minority. Hindus, who constitute about 8 per cent of the population, have faced numerous attacks on their homes, businesses, and places of worship.
In the immediate aftermath of Hasina’s departure, at least 200 attacks against Hindus and other religious minorities were reported across 52 districts. These incidents included vandalism of temples, arson, and physical assaults. The Bangladesh Hindu Buddhist Christian Unity Council documented these attacks, highlighting the widespread nature of the violence.
The situation has led to increased fear and insecurity within the Hindu community. Many Hindus, perceived as supporters of the ousted Prime Minister, have been targeted due to alleged political affiliations. This perception has exacerbated their vulnerability, leading to a sense of abandonment and concern for their safety.
In response to the escalating violence, tens of thousands of minority Hindus rallied to demand protection from the interim government. Despite these appeals, attacks have persisted, with reports of Hindu homes and temples being targeted. The international community has expressed concern, with neighboring India accusing Bangladesh’s interim leaders of failing to protect Hindus.
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