Agriculture Reference
In-Depth Information
nationalized banks, the agency was established with a wide charter and a range
of activities.
In practice, PASSCO has concentrated on (1) implementation of a support
price program for wheat, paddy, gram, potatoes, onions, and oilseeds; (2) price
stabilization; (3) construction of storage facilities and development of marketing
infrastructure; and (4) promotion of agro-based processing units, such as rice-
husking mills, establishment of cold storage, and provision of farm machinery
services to farmers. Atta (coarsely milled wheat), sugar, and other food com-
modities were rationed initially. However, over time the system lost its utility, es-
pecially in the provision of atta, and suffered from the many malpractices of of-
ficials of the food department and depot holders (fake ration cards, poor quality
of atta, and the like). Under a new system begun in 1987, the government sup-
plies wheat from its stocks at uniform issue prices to designated flourmills, which
are required to supply atta through general stores in the market. In the wake of
curtailment of coverage of support prices in recent years, PASSCO's role has
been limited to the procurement of wheat regularly and paddy occasionally. In-
tervention with other crops has been characterized by an ad hoc approach.
Bangladesh
Like India and Pakistan, the genesis of the food security administrative struc-
ture, scope, and objectives, including food control mechanisms, was associated
with wartime emergency followed by the great Bengal Famine of 1943. The po-
litical perception inherited from the British colonial tradition of the need to con-
trol foodgrain marketing remains firmly embedded even today. This tradition is
illustrated by a plethora of regulatory instruments, which, although not en-
forced or only partially enforced, remains in place. However, unlike its neigh-
bors, Bangladesh has not employed a parastatal to carry out price stabilization;
instead, price support and public distribution are operated through the Depart-
ment of Food.
At independence in 1971, Bangladesh was one of the poorest countries in
the world and was hit by a famine in 1974. Therefore, protecting consumers and
preventing famines were the main policy considerations in the early years after
independence. There was a large influx of food aid and an associated upsurge
in public distribution. However, the public distribution system was character-
ized by persistent heavy leakage. Progressive reforms have shifted the orienta-
tion of public policy from rationing to poverty-alleviation programs. The pub-
lic system has evolved to achieve multiple objectives: targeted distribution to
alleviate poverty, disaster management, and price stabilization.
By the late 1970s agricultural production started receiving greater atten-
tion. Deliberate policies were adopted to strengthen agricultural research, ex-
pedite technology diffusion, and encourage private-sector investment in agri-
culture. Increased public investments in agricultural research and extension in
the 1980s and 1990s, together with private-sector investments in small-scale ir-
