Food assistance for poor down as inflation, living cost up

The government's food assistance for the poor and low-income people has declined amid the current economic crisis, soaring inflation, and the rising cost of living.

According to the Ministry of Food, food distribution through various government programmes has decreased by around 2.16 lakh tonnes in a year.

Until 15 June of the current fiscal year, the government distributed over 27.52 lakh tonnes of rice and wheat, whereas the amount was 29.69 lakh tonnes in the same period of the previous year.

Data reveals that the programmes aimed at providing food to the people at discounted prices or in exchange for work, such as the Open Market Sales (OMS) and Food for Work initiatives, have experienced the highest reductions in distribution.

Experts said during the current economic situation, reducing food distribution is highly undesirable as it further exacerbates the financial burden on low-income people.

They emphasise the necessity of increasing the distribution of affordable food through social protection programmes, taking into account the prevailing macroeconomic conditions, including inflationary pressure.

According to the latest survey conducted by the Bangladesh Bureau of Statistics (BBS), the general inflation rate in May this year stood at 9.94%, with inflation rate in food reaching 9.24%.

Meanwhile, labour wages witnessed a 7.32% increase during that month. Consequently, the cost of living has risen at a higher rate compared to wages.

A senior official from the Ministry of Food told The Business Standard that the supply of food was initially reduced at the beginning of the current fiscal year due to a significant depletion in rice stocks. However, the stock levels have improved recently, leading to an increase in food supply.

As of 18 June, the government's total food stock consists of approximately 19.61 lakh tonnes of paddy, rice, and wheat, the official stated.

Govt's food assistance programmes

According to the government's supply report, the most significant reduction in the food supply has been observed in the Open Market Sales (OMS) programme. This programme enables people across the country to purchase rice and flour at a subsidised price.

The Directorate General of Food operates shops and trucks nationwide, selling rice at Tk30 per kg and flour at Tk24 per kg. People are allowed to purchase up to 5 kg of rice and flour at a time by queuing up.

Until 15 June in the current fiscal year, the government's supply under this widely utilised programme has decreased by around 1.17 lakh tonnes compared to the same period of the previous fiscal year.

The government also implements the Khaddyo Bandhob (food friendly) programme, offering 30 kg of rice per month to 50 lakh families nationwide at a subsidised rate of Tk15 per kg.

However, the distribution of food grains through this programme was around 88,000 tonnes less during the same period.

The Food for Work programme, implemented under the Rural Infrastructure Development Programme, provides food to impoverished people in rural areas in exchange for their labour.

Officials from the Ministry of Disaster Management and Relief have reported that the activities of this programme have declined due to the suspension of numerous projects in the current fiscal year.

Consequently, the supply of food grains through the programme has decreased by 31,271 tonnes.

The Gratuitous Relief (GR) programme serves as the government's emergency relief initiative to assist people affected by disasters. Under this programme, the government provides food grains or cash assistance.

However, in the current fiscal year, there has been a distribution reduction of 19,781 tonnes of food grains through this programme.

The Vulnerable Group Development (VGD) programme, administered by the Ministry of Women and Children Affairs, focuses on the empowerment of disadvantaged women. Unfortunately, there has been a distribution decrease of 2,513 tonnes of food grains under this programme during the period.

Meanwhile, the Vulnerable Group Feeding (VGF) programmes have observed an increase in food distribution in the current fiscal year. Under this programme, the government provides free 10 kg of rice to individuals identified as extremely poor, based on specific cards.

Until 15 June of the current fiscal year, the government has distributed an additional 7,441 tonnes of food grains compared to the previous year through this programme.

The government has also increased its food grain supply to the Essential Priority (EP) sector. This programme provides rice and flour to the Armed Forces, BGB, and police. The distribution within the EP sector has seen an increase of 8,444 tonnes compared to the previous fiscal year.

However, there has been a decrease in the distribution of rice and flour to prisons, the Others Priority (OP) sector catering to Ansars, and the Large Employment (LE) sector specifically benefiting tea workers.

Sayema Haque Bidisha, research director of the South Asian Network on Economic Modeling (Sanem), expressed concern over the government's reduction in food supply for low-income people.

"The social security programme is currently insufficient to keep up with the level of inflation and should be enhanced. In particular, there is a need for an increased food supply, which would not only benefit the people but also have a positive impact on the market," she said.

Monthly 5 kg rice for TCB cardholders

Meanwhile, the government has decided to provide 5 kg of rice per month to TCB cardholders at a rate of Tk30 per kg starting from next month. Furthermore, the truck sales activities of the OMS will be phased out.

Momtaz Uddin, additional secretary (procurement and supply department) of the Ministry of Food, said that the rice of the OMS programme will be given to one crore families through the Trading Corporation of Bangladesh.

"Besides, rice will be sold at the rate of Tk30 per kg through the dealers of OMS, keeping in mind the benefits of the floating ultra-poor, people in needs in the cities. But in that case buyers have to show national identity cards to OMS dealers to get OMS cards. This programme will be conducted through 400 dealers across the country," he said.

How inflation affects food intake

In a survey conducted by Sanem published in March this year, it was revealed that many people have had to reduce their food intake due to the high inflation rate.

The survey indicated that 96.4% of households have reduced their consumption of meat, while 88.2% have decreased their fish intake compared to the previous six months. Additionally, 81.4% of families cut down on oil consumption, 77.1% reduced egg consumption, and 37.1% decreased their consumption of rice.

According to the Centre for Policy Dialogue (CPD), as of December 2022, a family of four residing in central Dhaka had a monthly food expenditure of Tk23,676. However, if a family abstains from consuming fish, beef, and chicken for an entire month, the cost decreases to Tk9,557.

The CPD compared this minimum food cost with the minimum wages earned by workers in 21 industrial and service sectors. The findings revealed that in 15 sectors, it is challenging for workers to meet the minimum food requirements for their families with their current wages.