Significant rise in prices of rice, onion in

local markets
FE Report

Prices of rice, onion, edible oil and newly arrived vegetable

items increased and the prices of other essential commodities
remained unchanged in the city markets over the past week.

Market operators said prices of rice and onion registered a

significant rise in Bangladesh mainly due to an embargo in
export of some essential commodities by Indian government
recently.

"Moreover, this is the lean season for both rice and onion for
Bangladeshi market," admitted both rice and onion importers
separately.

Talking to the FE a wholesale rice trader at the city's Badamtali

wholesale rice market said the traders do not feel encouraged to
import rice from other countries due to higher transport and
other costs.

As a result, a gap has already been created in supply and demand

of rice in the lean season of paddy, he said.

"But, the prices of rice will come down within one month on the
onset of harvesting of Aman paddy," he said.

During the last week, at the wholesale level, Minicate variety of

rice was selling at Tk 1140 per maund (37.50 kg) in comparison
to its previous rate at Tk 1080 per maund one month ago.
Nazirshail variety of rice was selling at Tk 1300 per maund
compared with its previous rate at Tk 1250 per maund, Indian
Swarna at Tk 860 per maund compared with its previous rate at
Tk 830 per maund, BRRI at Tk 820 per maund compared with
its previous rate at Tk 760 per maund and Lata variety of rice at
Tk 900 per maund compared with its previous rate at Tk 850 per
maund.

Traders said the supply of Paari variety of rice has already come
to an end as this item is widely consumed in Bangladesh. Most
of the supply of Paari rice in Bangladesh comes from India,
traders said.

At the retail level, prices of coarse variety of rice were Tk 24-Tk

25 and finer variety of rice ranged between Tk 30 and Tk 34 per
kg, traders said.

Over the past week, at the retail level onion was selling at Tk 54-
Factors Affecting Trends in Nutrition

Economic Factors. With an estimated per capita GNP of US$220 in 1993, Bangladesh is one of the
lowest income countries of the world. Vulnerability to national disasters and heavy reliance on annual rains
make Bangladesh economic growth erratic.

In 1992/93, agriculture accounted for 34% of GDP as compared to 40% in 1986/87. It provides
employment for the majority of the workforce and, in many rural areas, is the only source of employment.
About 60% of person-hours worked in Bangladesh are spent in agricultural production, and mostly in rice
production.

Despite the country's erratic climate, agriculture has been the principal driving force of economic growth,
particularly as large sectors of industry rely on the crop and fisheries sectors as a source of inputs. Recent
signs of stagnation in agricultural growth have, therefore, serious implications for overall growth
prospects.

The economy is heavily dependent on foreign aid. Bangladesh has a low rate of national savings - only
6.4% of GDP in FY91, and 8.3% in FY92; foreign earnings were 4.0% of GDP in FY91, and fell to 2.2% in
FY92, of which overseas worker remittances accounted for approximately half. Investment in the economy
remains at the low level of 11% relative to GDP. Despite these structural weaknesses in the economy and
repeated disruptions by natural disasters, Bangladesh has made significant economic progress over the
past decade. Stabilization policies reduced external and fiscal deficits, reduced the inflation rate, promoted
non-traditional exports, and achieved a modest growth rate. The inflation rate fell to 5% in 1992, the
lowest rate in more than 10 years.

Food Security. The overriding objective of agricultural policy and development efforts in Bangladesh is to
achieve self-sufficiency in foodgrains. Foodgrain output has risen, but self-sufficiency remains elusive. Rice
output has tended to increase, but suffered from the 1987/88 floods and subsequent drought. In 1989/90,
the crop reached a record 17.9 million MT, a figure matched in 1990/91, and exceeded in 1991/92 with a
new record of 18.3 million MT - due primarily to a bumper boro harvest, which was up by 7% to 6.8
million MT. The per capita food production index has increased from 96 in 1986 to 110 in 1993 (base is
1979-81=100).

To ensure an affordable food supply for poor consumers, the government manages a variety of food
distribution programmes and open market sales operations to help stabilize foodgrain prices. The
objectives of price stabilization policies are to protect poor consumers from sharp price increases, protect
poor farmers from a postharvest price collapse and achieve foodgrain self- sufficiency. Public food
distribution programs provide approximately 13% of all foodgrains consumed in the country.

Conclusions

Food security indicators in Bangladesh have improved steadily over the past several years. However,
Bangladesh's per capita income has remained stagnant as efforts to reduce widespread poverty meet
substantial obstacles. Access to health services and antenatal care is increasing, although per capita
government expenditures are among the lowest in the world. Calorie availability in Bangladesh was
estimated to be 2019 in 1992, as compared to 1936 kcals/caput/day in 1986.

GNP per capita, per capita calorie availability, under-five mortality rate, foreign exchange earnings per
capita, and domestic food production per capita nonetheless indicate that nutrition in Bangladesh is
improving, particularly in the last year (1993), in line with the nutritional surveillance results.

Oil prices ease in Asia despite Turkey-Iraq tensions

SINGAPORE, Oct 22: Oil prices eased further from record highs in Asia today even as
tensions escalated further along the Turkish border with Iraq, reports AFP.
New York’s key oil futures contract, light sweet crude for delivery in November, was 97
cents lower at 87.63 dollars a barrel in late morning trade.
Analysts cited profit-taking as the contract closed down 87 cents at 88.60 dollars in New
York on Friday, after hitting a record 90.07 dollars earlier.
Brent North Sea crude for December delivery dropped 78 cents to 83.01 dollars per
barrel. The contract hit a record 84.88 on Thursday.
Surging crude prices blazed a record-breaking trail last week as Turkey set the ground
for a possible military incursion into oil-producing northern Iraq.
But David Johnson, an analyst with Macquarie in Hong Kong, said fears over the impact
of the tensions may have been overblown.
“We’re talking about one pipeline that carries about 600,000 barrels a day, under threat,”
Johnson said. “There was nothing else really under threat.”
Turkey said Sunday it was ready to pay any price to win victory over Kurdish separatists
after 12 soldiers and 32 rebels were killed in heavy clashes near the border with Iraq.
Turkish Defence Minister Vecdi Gonul said, however, that Ankara did not have urgent
plans to cross the border. He was speaking after talks with US Defence Secretary Robert
Gates.
Turkey accuses the rebels of launching assaults from Iraqi territory.
A falling US dollar has helped support the record-high prices. A weak greenback makes
commodities priced in the US unit cheaper for buyers using stronger currencies and
therefore boosts crude demand, analysts say.
The dollar suffered fresh losses Monday, hitting a record low of 1.4347 against the euro
in early Asian trading.
Analysts have also expressed concern about tight fuel supplies going into the Northern
hemisphere winter.
Iran said Saturday that the real price of oil is actually less than 50 dollars a barrel.
“Oil is still cheap,” Iran’s acting Oil Minister Gholam Hossein Nozari said in an
interview with the Iran newspaper. His country is the number- two exporter in the
Organisation of the Petroleum Exporting Countries (OPEC) cartel.

S Korea, China to start initial free trade talks

SEOUL, Oct 22: South Korea and China will hold a third round of preliminary talks this
week on a possible free trade agreement, the foreign ministry said today, reports AFP.
About 80 government officials and industry experts from the two nations will meet from
Wednesday to Friday in the Chinese city of Weihai, the ministry said in a statement.
The two sides aim to identify difficult issues, it said.