Boro rice procurement in Bangladesh: Implications for policy

“Boro” is the dry season irrigated rice crop planted from December to early February and harvested between April and June. In 2018/2019, the total production of rice in Bangladesh was 36,391,000 (36.4 million) metric tons (MT), of which boro rice accounted for 53.8 percent; aman rice, 38.6 percent; and aus rice, 7.6 percent. In 2019, paddy prices in Bangladesh were depressed due to a bumper harvest of the boro rice crop. Average paddy price was Tk 17.42 per kg in January 2019 after the aman harvest, but declined by 22 percent to Tk 13.56 per kg in May 2019 (DAM 2020). Farmers complained that they did not receive price support from the Government when paddy prices did not cover their production costs. In response to this situation, the USAID-funded Bangladesh Policy Research and Strategy Support Program (PRSSP) implemented by the International Food Policy Research Institute (IFPRI) actively engaged in policy dialogues, and the media extensively covered IFPRI’s analysis and policy recommendations on this issue. On 20 May 2019, the IFPRI Country Representative presented policy options on how to improve farmers’ situation, as related to the low paddy price issue, during a policy seminar at the Agricultural Policy Support Unit (APSU) of the Ministry of Agriculture, Government of the People’s Republic of Bangladesh. On 11 June 2019, the Ministry of Agriculture requested IFPRI-PRSSP to conduct a study jointly with APSU to assess the paddy price issue. IFPRI agreed to carry out the study. The objectives of this study are to (1) assess to what extent boro farmers were able to sell their paddy to the Government at the announced procurement price; (2) evaluate the efficacy of the direct paddy procurement from farmers by the Government, in order to help farmers overcome low paddy prices in the future; and (3) examine ways to improve the foodgrain procurement system. This report presents IFPRI’s study findings and identifies policy options to address the study objectives.