Govt to boost food stocks to counter market manipulation: Finance adviser
Salehuddin stated that Bangladesh's low tax revenue compared to other countries necessitates revenue-generating measures
The government will increase its food reserves to prevent manipulation by traders, Finance Adviser Salehuddin Ahmed said today (22 January).
"Although the country's food situation is satisfactory, it is not reflected in the market. If the government does not have enough reserves, traders try to take advantage," Salehuddin said at a press briefing following the Food Planning and Monitoring Committee meeting.
To address this, the adviser said the government has initiated efforts to increase food reserves through imports and ensure consistent supply.
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At the briefing, Food Adviser Ali Imam Majumder attributed the need for increased imports to production shortfalls in the Aush and Aman seasons due to premature floods.
"These shortfalls have created a deficit in government internal collection. While a successful Boro season is expected to alleviate the situation, the government will not solely rely on domestic production," he said.
Majumder also stated that the government has decided to import rice and wheat from both neighbouring countries and other global sources.
"While imports from neighbouring countries are generally more cost-effective, initiatives are underway to diversify import sources," he added.
Mentioning that 10 lakh tonnes of rice and wheat are in the import pipeline, he said this volume may be increased depending on the success of the Boro harvest.
He stated that 1 lakh tonnes of rice will be imported from Myanmar, 50,000 tonnes from Pakistan, and 1 lakh tonnes from Vietnam, while 3 lakh tonnes of wheat will be sourced from the world market, primarily from Russia.
Majumder noted a recent decrease in rice price volatility in the market.
Responding to a question about the recent VAT increase, Finance Adviser Salehuddin Ahmed explained, "It was implemented to boost government revenue and was not influenced by any specific recommendation."
He emphasised that VAT on essential goods and services has not been increased.
Salehuddin further stated that Bangladesh's low tax revenue compared to other countries necessitates revenue-generating measures.
He questioned the feasibility of providing certain goods and services at extremely low prices, citing the example of eyeglasses available for only Tk125.
He urged citizens to understand the need for reasonable taxation.
