Agriculture Reference
In-Depth Information
system, as well as changes in the philosophy of food-aid centering on poverty
alleviation through targeted delivery, have resulted in substantial savings for the
government along with increased capacity to assist the poor and the vulnerable
in terms of access to food and income. The continued existence of the PFDS,
thus, is explained by government policy objectives to alleviate poverty, ensure
access to food and income for the hardcore poor, and to better manage situa-
tions arising out of natural calamities. The age-old objectives of ensuring a floor
price for the producers and a ceiling price for the consumers remain part of the
stated objectives of the food policy, which is also supportive of the continued
existence of the PFDS despite doubts expressed about the efficacy of these ob-
jectives. This approach is better understood in terms of political and social con-
siderations than by arguments centered on financial savings alone.
Despite substantial savings already achieved through reform measures,
there is still scope for further reform measures that include such areas as an en-
abling legal and administrative environment for private-sector participation on
a larger scale, further cost-cutting measures in PFDS operation, and a well-
planned strategy to implement an export program for selected rice variation as
a means to increase farmer income.
There are divergent estimates of leakage and targeted delivery, which need
serious scrutiny. The resolution of the divergence in different estimates of leak-
age can perhaps be achieved through a more carefully designed methodology
to be uniformly followed in future estimates. In this context, reform measures
suggested by Ahmed et al. (2003) merit serious consideration. However, the
question of optimal stock remains a matter of continuing debate. Given the af-
firmation by the food policy to keep the level at 1.0 million tons, it seems un-
likely that there will be a downward revision of the stock in the near future.
The effect of the PFDS has been evaluated more in terms of financial costs
than in terms of economic and social benefits derived from food-based devel-
opment programs. Although reduction in the financial costs of operation should
remain an area of continuing concern, there is perhaps a need for devoting more
attention to the measures of economic and social benefits arising from such pro-
grams. A key area in this regard is the development of rural infrastructure and
its repair and maintenance, which is supportive of agricultural production and
marketing. This work directly and indirectly benefits the farmers and the econ-
omy as a whole in terms of increased availability of food through greater pro-
duction and associated savings in foreign exchange, employment generation,
enhanced livelihood opportunities, and easier access of farms to market.
These remarks are not to suggest a reduced role of the private sector in en-
suring increased supply of foodgrains and so leading to associated savings to
the public account, which already is an established fact in Bangladesh. Future
research is needed to further consolidate and expand the role of the private sec-
tor not only in imports, but in such areas as internal marketing, and the grading
and quality of food.
