| Aman holds key as crisis looms Dhaka, Aug 22 (bdnews24.com/Reuters) – Bangladesh officials said Saturday a good Aman crop was vital, alongside early preparations for necessary food imports, to cushion the country against the probable impact of neighbouring India's drought-hit crops on global food prices. India, one of the world's biggest food producing countries, has said it may have to import food to make up for shortages as drought is reportedly affecting 700 million people, of half the population of the country, after poor monsoon rains. India's monsoon rains have been 26 percent below normal since the start of the June-September season, hurting crops like cane, paddy, soyabean and triggering a sharp rise in local food prices. In Bangladesh, officials say India's decision to go for export would also hit global food prices, which should be anticipated and prepared for ahead of time. Food secretary Mokhlesur Rahman told bdnews24.com on Saturday, "We now have a stock of 13 lakh tonnes of food. With a good Aman harvest there should little risk of food shortages." But, he warned, if the Aman crop failed for any reason, disaster could strike. M Asaduzzaman, senior research director, Bangladesh Institute of Development Studies, also said, "Everything is now depending upon Aman production." "India is one of the largest food exporting countries in the world." "If the Indian government decides to go for food import, because of drought or whatever reason, it will spur panic in the world market. Many countries will rush to import foods from other exporters leading to prices spiralling internationally." Asaduzzaman mentioned the most recent global food crisis of 2007-2008, when a tonne of rice soared in price from $300 to more $1000. "Prices of rice, wheat and other food grains in the international market went up abnormally during that period, as production was very low in India and other major exporting countries." "Bangladesh was also doubly hit by this effect as Cyclone Sidr hit that year." "Prices of rice, flour, pulse, edible oil and other things go up here chasing prices in the international market.' "Learning from experiences, we will have to be very careful. We must keep an eye on the situation and import food well ahead if necessary," said Asaduzzaman. Food secretary Mokhlesur Rahman said Bangladesh's food stock was larger than any other time in the past. "But if the Aman production is hit by floods or any other disaster, that will create a major problem," said Rahman. Haji Golam Maola, general secretary of Maulavibazar Businessmen's Association, also said, "The government has enough food stock for now. If the production of Aman is good, we will not have to rely on imports from any country." But, Asaduzzaman said, one major problem still to overcome, is storage. "We cannot even keep our home grown foods due to shortage of storage. Our own food grains are being damaged as we do not have enough storage facilities.. The government will have to take steps keeping this point in mind as well.." He also said, like India, Bangladesh too faced drought this year, with planting of Aman beginning late. "It is now raining though. Our farmers are working in full swing, even it is late," he said. "We will not face any major rice crisis if the Aman production is good. But other food stuffs, the ones we import from India, for example, pulses we have to be cautious about." Drought-hit India may have to import Indian finance minister Pranab Mukherjee was quoted by BBC News on Saturday, saying India would have to import food to make up for any shortages, but did not specify what would be imported and when, saying he wanted to avoid speculation on prices. Mukherjee said any commodity that was in short supply would be imported to boost domestic stocks. He said details of the imports were not being revealed, though reports said lentils, edible oils and other staples might be among the foods to be brought in. The drought is affecting almost half of Indian districts with food prices reportedly escalating by 10 percent. Millions of Indians, from rice-dependent families in the poverty-stricken plains of Bihar to the sugarcane farmers of western India, are struggling for survival. To tackle the situation, the government has called for judicious use of ground water and reservoirs for irrigation, as India's main reservoirs stood at 38 percent of total capacity, down from 58 percent a year ago. The monsoon is crucial to the health of Asia's third-largest economy, although an increasingly diversified economy means a deficient monsoon has less of an impact on the overall economy than in past dry years, and strength in manufacturing and urban demand could offset disappointing crop output. |
__._,_.___
