Impact of food-price rise: 40 lakh people pushed below poverty line: WB

  • 27/08/2008

  • New Nation (Bangladesh)

Bangladesh could increase rice productivity from 30 to 60 per cent by using hybrid seeds, improvement of crop management and proper utilisation of fertilizer for attaining food security. "Open Market Sale (OMS) of rice, social safety net programmes and 100 day Employment Guarantee Scheme (EGS) are some of the effective measures taken by the government to ensure food security for the vulnerable people," said Xian Zhu, Country Director of the World Bank yesterday. He said at a workshop on 'Impacts of Food Crisis in Bangladesh' organised by the World Bank at its office in the city. Some 40 lakh people of the country have been pushed down under the poverty line anew by the recent food-price rises due to natural disaster on the domestic front coupled with volatility on the international market, according to World Bank's findings. Vinaya Swaroop, lead economist of the bank for Bangladesh presented the keynote paper. It was also attended, among others, by Zahid Hussain, senior economist, Nihal Fernando, senior rural development specialist and Mehrin A Mahbub, public information associate of the bank. Xian Zhu said the price of rice remained high despite the bumper production of 'Boro' crop. It is causing hardship to the poor and low-income group of people and eroding nearly one-fifth of their household income. He said the bank is assisting the government to provide medium-to-long term support to enhance food security and production. He also said $ 109 million financial support from the bank for Emergency Cyclone Recovery and Restoration project, National Agriculture Technology Project (NATP) in the crops, livestock and fisheries sub-sectors, shall be extended. He mentioned that the bank was also going to assist the government for preparing a National Social Safety Net Project for protecting urban poor form the vulnerabilities of food price hike and natural disasters. Vinaya Swaroop said currently the price of coarse variety of rice is still high in comparison with the last year price. He also said the overall food inflation in the country has been in double digits since the beginning of this year due to rising of rice prices. "High rice price has forced the poor and low-income group to spend one fourth and one third of their household expenditure," he said adding that poverty has declined 2 per cent from 40 per cent in 2005 to 38 per cent in 2008.