DHAKA: Dangerously low grain stocks and a failure to secure imports have pushed up food prices dramatically in Bangladesh and the transitional government has come under attack for its apparent inability to tackle the problems.

The price of a kilogram of rice in the domestic market has doubled to $0.60 since January last year and many other commodities have seen similar price increases. Overall inflation was 10.06 per cent in October, near a 13-year high hit in August.

The army-backed interim government headed by former central bank chief Fakhruddin Ahmed is desperately trying to import rice, the main staple for the population of more than 140 million.

But many countries around the world face a shortage of food due to production failures or disasters, plus demand for bio-fuels, all of which has squeezed supplies and pushed up prices in global markets.

“The government should try for quick imports (of rice and wheat) to replenish stocks and it also needs to make another appeal to international donors and agencies to come in aid of Bangladesh immediately,” Atiur Rahman, a Dhaka University professor and noted economist, said.

“The country is now passing through its worst (food) crisis.” The government currently has a stock of around 600,000 tonnes of food grains, against the minimum stock of 1 million tonnes it needs to meet emergencies, officials said.

The officials said Bangladesh needed nearly 2 million tonnes of food grains, including rice, by the end of June, following a devastating cyclone in November that killed over 3,300 people and left millions homeless.

The cyclone and two spells of flooding in July-September destroyed 1.8 million tonnes of rice in the fields, according to official estimates.

The government’s food adviser, Tapan Chowdhury, drew a bleak picture when speaking to reporters on Tuesday. He blamed the food price inflation on high prices in global markets, dishonest traders and the lack of supply, but also said his government had “nothing to do” to control the prices, meaning there was no mechanism available to hold down prices.

His remarks drew criticism from politicians and analysts.

“If they have nothing to do ..., then what they are here for?” said retired army major-general Syed Mohammad Ibrahim, head of the recently launched Kalyan Party (Welfare Party).

Ibrahim called Tapan’s remarks “irresponsible” and said they would simply push food and other commodity prices even higher.

Tapan said the government was still negotiating with India over the 500,000 tonnes of rice that New Delhi offered to sell to Bangladesh in the wake of the cyclone.

The price and other details were still being worked out, food ministry officials said. The adviser said Bangladesh was also looking to import rice from Thailand, Myanmar and Pakistan to build stocks up to a satisfactory level and boost supplies to the domestic market.

“We have already taken the decision to import 100,000 tonnes of rice from Thailand while buying another 75,000 tonnes from there is under active consideration,” Tapan said.

Analysts say the rocketing food prices could pose a huge challenge to the interim authority, whose primary responsibility is to arrange elections before the end of 2008, after which it will transfer power to an elected government.—Reuters