Granting permission for import is no cure for food crisis

The state minister for commerce announces at a press conference that in view of the price hike of onion and potato, his government has allowed import of the two items from any country. To that end import permission (IP) has been granted now. To the majority of consumers who find the atrocious price escalation of these two common kitchen items beyond their purchasing power, this is no revelation nor consolation. Even in the peak harvesting period of onion and potato, their prices were higher than during the same period ever before. In fact, following the ban on export of onion by India on December 7 last year, there was no import of the item from that country till 13 May this year. The import resumed from May 14 with India allowing the export to Bangladesh and five other countries. This time the price was fixed at $ 550 a metric tonne or Tk 65 a kilogram of onion. With carrying and other costs it comes to almost Tk 70.

Traders were not particularly interested in importing Indian onion at this price and it is not clear if the 50,000 tonnes of onion earmarked for import arrived in Bangladesh. So, the state minister's statement on issuance of IP will hardly make any difference unless traders find onions cheaper for import from other countries. What is clear is that the government has been reactive than proactive in case of intervention in the market. The minister's claim that no business syndicate could operate in the country during the past six months certainly looks contentious. In case of egg, the clandestine storing of those in huge quantities in cold storages in several places across the country is a clear proof that the egg market was destabilised in order to raise prices. Yet another round of price increase of the item has unexplainably been effected now. The authorities even contemplated import of eggs from India following another round of increase on the heel of imposition of hefty fines on some large poultry farms for their involvement in market manipulation.

So far as import of potato is concerned, it will be something new in the country after decades. This common item was ever cheaper and farmers or stockists had to dispose those anywhere and anyhow in disgust and anger at times as feed for cattle. What has suddenly happened that its price did not come down below Tk 40 even in the peak harvesting period and now makes it incumbent on the country to go for import? Have farmers in droves started stopping cultivation of the crop? Not only the data on this item but every other agriculture produce have to be authentic in order to know the exact picture and take measures accordingly.

There is no such thing as extempore solution particularly when adverse climate hampers yields of some crops in the countries responsible for major production and supply. This late call will neither help augment supply nor arrest price hike. If international supply chain shrinks, there are competitors with enough money to procure the lean supply at higher prices. Bangladesh is not a powerful player in this regard. It has to plan well in advance with some of its food items on the import of which it depends. At this time of the year, it is too late to open LCs and stabilise the onion and potato market.