Govt cuts OMS rice, flour allocation to adjust safety net spending

The government has reduced its targets for selling rice and flour at subsidised prices under the Open Market Sale (OMS) programme for low-income people in the current fiscal year to adjust broader changes to social safety net spending.

According to Food Ministry data presented at the first meeting of the parliamentary standing committee on the ministry on 15 October, the government has set a target of selling 240,000 tonnes of rice and 350,000 tonnes of flour in FY27.

In FY26, the government sold 304,000 tonnes of rice and 449,000 tonnes of flour.

The subsidy allocation for OMS has also been cut by Tk685 crore to Tk3,411 crore in the current fiscal year, down from Tk4,096 crore in the previous year.

A Food Ministry official, speaking on condition of anonymity, told TBS that the allocation was adjusted as part of broader changes to social safety net spending, although the overall allocation for social protection had increased.

The official said the decision was not final and the government could provide additional funds if necessary.

Under the OMS programme, rice is sold at Tk30 per kg, loose flour at Tk24 per kg and a two-kg packet of flour at Tk55.

The government operates 1,125 OMS outlets nationwide through dealers, with a greater presence in city corporations and district headquarters.

Concerns over affordability

According to Trading Corporation of Bangladesh (TCB) data on 17 October, medium-quality rice varieties such as Paijam and Atash were selling for Tk56-65 per kg in Dhaka markets, while coarse varieties such as Swarna and China were priced at Tk50-55 per kg.

Although the TCB reported stable prices, market visits in the capital found that coarse and medium-quality rice prices had risen by Tk1-2 per kg over the past week, with traders fearing prices could rise further.

The reduction in OMS sales targets has raised concerns about whether low-income households will have sufficient access to affordable food as market prices increase. The government has also stopped selling rice through the TCB this year, after offering it at subsidised prices last year, further reducing the availability of low-cost rice through public channels.

Infographics: TBS

Food subsidies also fall 

The government's total food subsidy allocation has been reduced to Tk7,973 crore in FY27 from Tk8,504 crore in the previous fiscal year.

However, the allocation for food imports has increased. The government has earmarked Tk9,363 crore to import 1 million tonnes of rice and 800,000 tonnes of wheat this fiscal year, compared with Tk6,684 crore spent on importing 700,000 tonnes of rice and 800,000 tonnes of wheat in FY26.

Meanwhile, the allocation for procuring paddy, rice and wheat from domestic sources has fallen to Tk11,434 crore from Tk11,963 crore. The domestic procurement target has also been reduced by 56,000 tonnes year-on-year.

Sayema Haque Bidisha, a professor of economics at the University of Dhaka, told this newspaper that low-income people were already under pressure from rising fuel prices and broader economic difficulties.

She noted that forecasts by the World Bank and the International Monetary Fund also pointed to an economic slowdown.

"OMS allocations should be adjusted urgently, and the number of sales outlets should be increased. Subsidies for the programme should also be raised," she said.

If the government has evidence of black-market activity, it should review eligibility and distribution procedures to prevent abuse, she added.

However, she said the current situation did not justify reducing supplies under the programme.