EWFIS-43
EWFIS-43
Movement and Storage System Analysis for the Public Foodgrain
Distribution System
in Bangladesh*
Naser Farid1
Dr. M. Sayedur Rahman2
Md. Monirul Islam3
________________________________________________________________
1Project Director
2Agricultural Statistics Specialist
3Senior Assistant Chief
Early Warning and Food Information System Project
Ministry of Food
October 2002
Executive Summary
Storage plays an important role at various stages of food
management and operations, and is an integral part of any food
security system. Interventions in the food sector and food security
reserve programmes require substantial capacity for storing and
distributing food. The maintenance of a continuous flow of food
from one point to another point needs sufficient storage capacity
at each point in the food chain. Some grains require additional
drying before they can be stored. They must be milled after being
taken out of storage and before they can be consumed. Modern large
scale commercial processing is required as the scale of
procurement, storage and marketing of grains increase.
The public food operation of Bangladesh is based on a set of
policies and an organisational structure designed to carry out
these policies. The system is administered through the Ministry of
Food, with Secretary as its administrative head. The Ministers of
Food, Agriculture, Finance, Planning and the Head of State make
major policy decisions at the highest level. Initiations for
changes in policies come from any of these ministries, even though
the Food Ministry conducts the formal processing. The Secretary
initiates the formulation of policies and maintains overall
supervision of the system. The Director General of Food (DGF) as
head of the Food Department manages the system; the primary
organization consists of a number of branches entrusted with the
task of distribution, procurement, storage and movement, finance
and accounts and inspection and control.
As a price stabiliser PFDS acts as a buffer stock agency, buying
paddy, rice and wheat when prices are low and later supplying that
foodgrain to the market when prices are high. The system has
undergone various changes in respect of objective, structure,
functioning and size of operation during the past four decades. The
year-to-year operation varied substantially during the eighties.
The variations were mainly caused by increased requirement for
cereals resulting from natural disasters. The public food operation
started declining in the early-nineties in the wake of the emerging
foodgrain market and trade in Bangladesh. The current commitment of
Bangladesh Government to food market liberalisation policy is a
striking feature of the political and economic scene. The PDFS
includes a variety of programs that make use of the food aid and
other food resources made available by the Government. Even though
the programs make use of food resources, not all the programs
distribute food. Some projects use commodities for their programs
(FFW) and others use cash. The GDB uses their PFDS network to
transport the grain from the central storage locations to the local
storage sites (LSDs). This is the system that is used for the WFP
programs. In this case the WFP helps to pay for the distribution
cost. Subject to the availability of resources in general and
individual commodities in particular WFP will supply to the
Government 642 000 m.tons of wheat and 25000 to of blended food
during the period January 2001 to December 2005 as basic WFP
resources. The total value of this basic multilateral quantity,
including the cost of freight, superintendence and local
supervision is estimated at US$ 142572000. The total quantity of
food estimated to be made available as supplementary multilateral
resources to the regular programme activities amount to 90000m.ton
of wheat equivalent during the same period. The value of this
supplementary food quantity including the cost of freight,
superiintendence and total supervision is estimated at US$ 18,
436,000 WFP may supply vegetable oil in lieu of cash to pay for 50%
of the internal transport, storage and handling (ITSH) of this
quantity of food.
The lack of storage capacity in areas prone to natural
disasters, prolonged droughts or seasonal flooding may also result
in delayed response to relief needs and the spreading of famine
condition before counter measures can be launched. In the chronic
food deficit economy of Bangladesh, the post harvest loss due to
traditional processing system is obviously a problem to the
country's food policy and strategies. Improved processing system
can produce higher output of rice and quality by-products and can
reduce the storage, transit and handling losses as well as reduce
post-harvest losses to a great extent.
Storage plays the key role in the entire process of procurement.
Under given situations of price and supplies, the level of
procurement is functionally related to that of the storage
facilities. Many individual facilities serve primarily or even
exclusively only one particular objective and are only marginally
or indirectly relevant for the achievement of others. Disparities
between capacity utilisation at CSD and LSDs stem from the high
demand for local transport. Capacity utilization and stock turnover
vary considerably from season to season as warehouses are more
fully and often over utilized during the height of the domestic
procurement drive but remain relatively underutilized the rest of
the year.
List of Contents
List of Contents
List of Tables
List of Figures
Introduction
1.1Public Foodgrain Distribution System
2. Storage
2.1 Need for Storage
3. Storage and Food Security System
3.1 Foodgrain Storage Capacity and Its Utilization
3.1.1 Foodgrain Storage Capacity
3.1.2 Foodgrain Storage Capacity Utilization
4. Concluding Remarks
Reference
List of Tables
Table 1: Distribution of surplus-deficit districts.
Table 2 : Districtwise Foodgrain Storage Capacity and Stock on
September 21, 2000
Table 3: Districtwise Foodgrain Storage Capacity and Stock on
September 14, 2000
Table 4: Districtwise (Dhaka, Gajipur, Narshingdi, Narayanganj,
Munshiganj and Manikganj) Storage, Stock and Its Capacity
Utilization, 30th September 2002.
Table 5: Districtwise (Faridpur, Madaripur, Gopalganj, Rajbari,
Sariatpur, Sherpur) Storage, Stock and Its Capacity Utilization,
30th September 2002.
Table 6: Districtwise (Jamalpur, Mymensingh, Kishorganj)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
Table 7: Districtwise (Tangail, Netrokona) Storage, Stock and
Its Capacity Utilization, 30th September 2002.
Table 8: Districtwise (Rajshahi, Nawabganj, Natore, Naogaon)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
Table 9: Districtwise (Dinajpur, Thakurgaon, ) Storage, Stock
and Its Capacity Utilization, 30th September 2002.
Table 10: Districtwise (Panchagarh, Pabna, Serajganj, Rangpur)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
Table 11: Districtwise (Kurigram, Lalmonirhat, Nilphamari,
Gaibandha) Storage, Stock and Its Capacity Utilization, 30th
September 2002.
Table 12: Districtwise (Bogra, Joypurhat, Khulna) Storage, Stock
and Its Capacity Utilization, 30th September 2002.
Table 13: Districtwise (Bagerhat, Satkhira, Jessore, Jhinaidaha)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
Table 14: Districtwise (Magura , Narail, Kushtia, Chuadanga,
Meherpur, Barishal) Storage, Stock and Its Capacity Utilization,
30th September 2002.
Table 15: Districtwise (Jhalokathi, Pirojpur, Bhola, Barguna)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
Table 16: Districtwise (Patuakhali, Chittagong ) Storage, Stock
and Its Capacity Utilization, 30th September 2002.
Table 17: Districtwise (Coxs Bazar, Bandarban, Rangamati,
Khagrachari) Storage, Stock and Its Capacity Utilization, 30th
September 2002.
Table 18: Districtwise (Feni, Noakhali, Comilla, ) Storage,
Stock and Its Capacity Utilization, 30th September 2002.
Table 19: Districtwise (Laksmipur, Brahmanbaria, Chandpur,
Habiganj) Storage, Stock and Its Capacity Utilization, 30th
September 2002.
Table 20: Districtwise (Sunamganj, Sylhet, Moulvibazar )
Storage, Stock and Its Capacity Utilization, 30th September
2002.
Table 21: Districtwise Storage, Stock and Its Capacity
Utilization in the CSD & Silo, 30th September 2002.
List of Figures
Figure 1: Food Aid Distribution Flow Chart.
Movement and Storage System Analysis for the Public Foodgrain
Distribution System in Bangladesh
By
Naser Farid, Dr. M. Sayedur Rahman & Md. Monirul Islam
Introduction
Foodgrain requirement in Bangladesh is met from two sources,
namely domestic production and import. Domestic production has been
the dominant source of supply, even when the country used to have
substantial deficit in supply to meet the food requirement. The
expansion of domestic production at a rate faster than the growth
of the population has substantially reduced the food deficit. Two
factors explian the latter phenomenon; first, the growth of the
population, which means increased food demand and secondly in an
important way, transfer of income to the disadvantaged groups
through welfare programmes with the help of food aid. The storage
plays an important role in marketing activities. The storage is
largely a function of farmers implies that (i) the market is not
developed to take the responsibility of storage on a scale pari
passu with growth of marketable surplus or (ii) there are risks of
crop failure, which the market does not speculate or pursue
arbitrage effectively. Marketable surplus are available from food
surplus districts in general. The number of surplus districts was
increased 19, 29 and 34 out of 64 in the year 1984, 1991 and 2000
respectively. Division wise distribution of the number of surplus
and deficit districts was as follows in Table 1. The market does
not appear to have played its role with foresight in the
distribution of surplus output across the country.
The Public Food Distribution System (PFDS) in the area now
constituting Bangladesh was originally instituted in the wake of
great Bengal famine in 1943. The initial major objective was also
to strengthen the war effort in India with particular emphasis on
Bengal since it was a province in the front line of the war.
Providing food to city people was also consistent with this general
objective (Ahmed, 1979). Despite the subsequent changes in
political system in the country, no major deviation is observed in
the urban bias of public foodgrain distribution (Knight, 1954).
Rationing was retained in East Pakistan, except a brief interlude
during August 1955 through January 1956 when rationing system was
abolished. The PFDS has changed in its character after independence
of Bangladesh in 1971, and this change reflects, to an important
degree, the drastically altered political circumstances in the
post-liberation period. The PFDS has become economically costly but
politically necessary instrument of food policy (Ravallion,
1987).
Table 1: Distribution of surplus-deficit districts.
Division
1984
1991
2000
Surplus
Deficit
Surplus
Deficit
Surplus
Deficit
Rajshahi
8
8
13
3
15
1
Khulna
0
10
5
5
6
4
Barisal
2
4
2
4
3
3
Dhaka
5
12
5
12
4
13
Chittagang
4
11
4
11
2
9
Sylhet
-
-
-
-
4
0
Total
19
45
29
35
34
30
Source : FPMU
The public food operation of Bangladesh is based on a set of
policies and an organisational structure designed to carry out
these policies. The system is administered through the Ministry of
Food, with Secretary as its administrative head. The Ministers of
Food, Agriculture, Finance, Planning and the Head of State make
major policy decisions at the highest level. Initiations for
changes in policies come from any of these ministries, even though
the Food Ministry conducts the formal processing. The Secretary
initiates the formulation of policies and maintains overall
supervision of the system. The Director General of Food (DGF) as
head of the Food Department manages the system; the primary
organization consists of a number of branches entrusted with the
task of distribution, procurement, storage and movement, finance
and accounts and inspection and control. Food Department, the
national food agency, was established in 1943 to act as the
government quartermaster for physically supplying food items to
essential and other priority groups with added responsibility for
price stabilisation and maintenance of national food security
through the Public Food Distribution System (PFDS). As a price
stabiliser it acts as a buffer stock agency, buying paddy, rice and
wheat when prices are low and later supplying that foodgrain to the
market when prices are high. The system has undergone various
changes in respect of objective, structure, functioning and size of
operation during the past four decades. Its operation has expanded
specially in the seventies particularly after the year of
Liberation. Publicly owned storage facilities have been developed
to a capacity of 1.85 million metric tons before 1985 and these
capacities are spread throughout the country. The year-to-year
operation varied substantially during the eighties. The variations
were mainly caused by increased requirement for cereals resulting
from natural disasters. The public food operation started declining
in the early-nineties in the wake of the emerging foodgrain market
and trade in Bangladesh. The current commitment of Bangladesh
Government to food market liberalisation policy is a striking
feature of the political and economic scene. It is manifested at
two levels: in declared Government policy and in their
implementation. Initiatives are being taken to shift from state
control management of foodgrain trade and storage to a system,
which encourage full participation of the private sector.
1.1Public Foodgrain Distribution System
The PDFS includes a variety of programs that make use of the
food aid and other food resources made available by the Government.
Even though the programs make use of food resources, not all the
programs distribute food. Some projects use commodities for their
programs (FFW) and others use cash.
All the food that is received by the WFP and other donors is
merged with the other government stock in the government storage
facilities. The Government is then responsible to deliver the
amounts of food or cash required for carrying out the projects. To
provide the cash required by the programs that operate in cash, the
GDB converts the grain at a specific agreed price and delivers the
proceeds to the projects in an agreed amount of time. This process,
known as monetisation, does not necessarily imply that the grain is
actually sold. In fact, if it used by another program run by the
GDB, it implies a simple transfer of resources from one department
to another. Take for example the IFFD. The GDB receives the grain
as food aid to carry out the programs managed by CARE. The grain is
delivered to the Ministry of Food, which is responsible to convert
it to cash. The delivery time (usually four months) and the
conversion price are negotiated at the time the grain is delivered.
The cash is then deposited in the local banks and made available to
CARE for operating their programs.
When programs are carried out in kind, the GDB is responsible
for delivering the required amounts of the commodities at the local
level for the programs to collect it. The GDB uses their PFDS
network to transport the grain from the central storage locations
to the local storage sites (LSDs). This is the system that is used
for the WFP programs. In this case the WFP helps to pay for the
distribution cost. They provide payment for half of the estimated
cost (in 1994 it was estimated to be $46 a ton). Half of the cost
is supplied in kind (vegetable oil) and half in cash. Subject to
the availability of resources in general and individual commodities
in particular WFP will supply to the Government 642 000 m.tons of
wheat and 25000 to of blended food during the period January 2001
to December 2005 as basic WFP resources. The total value of this
basic multilateral quantity, including the cost of freight,
superintendence and local supervision is estimated at US$
142572000. The total quantity of food estimated to be made
available as supplementary multilateral resources to the regular
programme activities amount to 90000m.ton of wheat equivalent
during the same period. The value of this supplementary food
quantity including the cost of freight, superiintendence and total
supervision is estimated at US$ 18, 436,000 WFP may supply
vegetable oil in lieu of cash to pay for 50% of the internal
transport, storage and handling (ITSH) of this quantity of
food.
Sales Distribution Channels
The first three programs, EP, OP and LEI, are ration programs
based on occupational affiliation.
The Essential Priority (EP)
Includes members of the armed and paramilitary forces, along
with hospital and jail inmates. They are entitled to receive a
monthly ration quota of 9.3 kg of wheat, 12.1 kg of rice, and .93
kg of oil. Commodities are sold at subsidized price (approximately
1/6 of the procurement price). In 1997/8 a total of 119 thousand
tons of rice and 80 thousand tons of wheat were distributed under
this channel.
The Other Priority (OP)
Includes workers of government and semi-government workers,
autonomous bodies, schools, teachers and so on. At present it
covers only workers in the fire and civil defense departments. The
quota that they can receive is equal to 10 kg of rice or 10 kg of
wheat and they can collect the commodities two times a month. The
price is equal to the economy price. The disbursement in 1997/8 was
equal to 11 thousand tons and covered approximately 200,000
households.
The LEI program
It covers factories employing 50 or more workers in areas not
covered by any other program. The grains are supplied to the
factories for direct distribution. The allotment is equal to 32.66
kg per month per worker irrespectively of family size. At present
the program covers mostly workers in the tea garden industry. The
disbursement for the 1997/8 was 15 thousand tons and covered
approximately 40,000 people annually. The transfer price is equal
to the Open Market Sales price (OMS).
Flour Mills (FM)
This is a price stabilization program. Approved flower mills
receive an allotment of wheat at OMS price for processing wheat,
originally sold at the market price by the mills, into flour. This
flour was mostly used for production of bread and other
confectionery items. In 1997/8, 40 thousand tons of wheat was
allocated to this channel.
Open Market Sales (OMS)
This are used to make grain available in the market in the event
of a price hike. Grain commodities are sold in the market as soon
as the price reaches a target level. It operates mostly during the
lean seasons, between October and March. The amount of grain
disbursed through this channel depends on the level of the trigger
price. In 1996/7, no sales were done and in 1997/8, 130 thousand
tons of rice and 20 thousand tons of wheat were allocated.
The Food for Education (FFE)
This is one of the latest programs to have been introduced (in
September 1993). It has two main purposes: encourage the attendance
of children to school and to improve their nutritional status. It
is targeted towards children age 6 to 10 from poor rural families.
Each family is entitled to 15 kg of wheat (or alternatively 12 kg
of rice) if they have one child that goes to school and 20 kg of
wheat if they have more than one child. The ration is received
provided that the child addends the school for more than 85 percent
of the working days. This is a mean tested program. The criteria
for eligibility are the a combination of the following:
a) The family must own less than .5 acres of land;
b) The household head principal occupation must be day
labourers;
c) The head of household is widowed and distressed;
d) The individuals are poor professionals.
The program covers all Thanas, but only a few unions in each
Thana. The selection of the unions to be included in the program is
made on the bases of its level of economic development, school
achievement and backwardness. In each union all primary schools
participate into the program. The school management committee and
the compulsory primary education ward committee select the
beneficiaries. The eligible families are issued a card and can
collect the grains once a month from the school.
Each school is responsible for transporting the grain from the
LSD to the school. For this purpose, they receive a maximum cash
allowance of taka 185 per ton of wheat, the proceeds from the sales
of the empty bags and taka 300 per month. The Directorate of
Primary Education and the Project Implementation Unit are overall
responsible for the program, while the Thana education committee
does the evaluation.
In 1997/8 the size of the program was 300 thousand tons of grain
(125 thousand tons of rice and 175 thousand tons of wheat).
According to the “FFE Program, Primary and Mass Education Division
GDB”, in 1995-96 the program covered a total of 16,159 schools in
1250 Union Parishads. Assistance was provided to 2.2 million
students in 1.98 million families.
Non-Sales Channels and Other Progams
The Vulnerable Group feeding/Development program (VGD)
It was started in 1975 by the GDB with the support of WFP. It is
a poverty alleviation project targeted to women. Its main goal is
to improve the living conditions of the poorest women. It is
implemented in all Thanas and reaches almost half million poor
women every year. To be eligible to participate in the program
women need to apply for a card to the Union Parishad. To be
accepted they have to satisfy the following criteria:
a) Have to be from household that have less than half an acre of
land;
b) Have to earn less than taka 300 per month or no income;
c) Have to be daily or causal labourers;
d) Have to come from households lacking ownership of any
productive assets.
In practice not all the women that apply to the program are
accepted, since the number of cards allocated to each area is
fixed. At the moment the allocation of the number of cards to each
Thana decided by WFP in conjunction with the Ministry of Welfare
following the GBD/WFP resource allocation map for Food-Assisted
Development. The program is organized in four separate
subprojects.
I. The Union Parishad Groups development (UPVGD-Income
Generating IG);
II. The women’s training centre (WTC);
III. VGD-NNP;
IV. Group leaders and extension workers (GLEW)
The UPVGD covers approximately 90 percent of the program,
provides saving, credit and the possibility of training. The
development package provided to women includes access to saving,
group formation for social awareness and building and training in
income earning skills (poultry production). In 1994/5 almost all
women received access to credit, 78 percent participated to income
generating activities and 26 percent received access to credit. The
WCT program covered approximately 41,000 women in 1994/95 and
430000 in the year 2001/02. It provided then with a variety of
training. During the same period, the IFDC provided supplemental
feeding for approximately 50,000 children and other institutions.
The GLEW recruits women with the capability of becoming leader
extension workers. In 2001/02 year 500 groups were formed and a
total of 12,500 women participated in the group.
VGD-NNP in year 2001/02 is 20000 women, 82500 women in 2002/03.
The implementation of the project has been gradually transferred to
the Ministry of Women and Child’s affair following the SIFAD
recommendations. At the local level the VGD committees under the
supervision of the Project implementation officer selects the women
to participate in the program.
The Integrated Food Security (IFS)
The integrated food security programme will follow an area based
approach and aim to improve household food security and nutrition
of the ultra poor and food insecure. The IFS programme will
implemented through three components: the community nutrition
initiative (CNI); trainning and nutrition centers (TNC) and
food-for-asset creation (FFA) activities. All components are
currently being developed and a field testing project is being
implemented to established operational guidelines jointly with LGD,
the government counterpart of this programme.
In 1997/8, 180 thousand tons of grain was allocated to this
program. This includes 60 thousand tons of rice from the GDB. In
addition, WFP provides a small amount of edible oil to help to pay
for 50 percent of the distribution cost. In 2001-05, WFP was
allocated to the programme 642000 tons for basic wheat, 90000 for
supplementary wheat and 25000 tons for blended food. Also bilateral
program 500000 tons for wheat and GOB 300000 tons for wheat and
US$m50 for cash.
The Rural Development project (RD)
This program is run under the WFP umbrella evolved from an
earlier food for work project started in 1974, after the famine.
The main objective of program is to contribute to food security and
to provide support to the poorest of the rural poor in sustainable
ways by creating employment opportunities and by providing access
to skill development. The program provides funds to implement a
variety of projects in four main sectors, which are carried out by
Government agencies or NGOs. The four sector of intervention
are:
a) Water sector – implemented by the BWBD (Bangladesh Water
Development Board) for the construction and rehabilitation of
coastal river embankments and excavation of drainage and irrigation
systems (50 percent of funds);
b) Roads – implemented by the LGDE, for construction of growth
centers connecting roads (20 percent of the funds);
c) Fisheries – implemented by the GDB and NGOs, for excavation
of riverine lakes and fresh water ponds;
d) Forestry – implemented by the GDB and NGOs, for planting and
maintenance of trees.
Over 200 thousand tons of grains have been allocated to the
program in 1997/8. The funds are derived from bilateral agreements,
WFP and the GDB (their contribution is in cash and it is used to
pay for 30% of workers salary in cash). Parts of the funds made
available by the EU are distributed under IFADEP project programs.
In addition WFP supplies approximately 2,000 liters of vegetable
oil a year to finance 50% of the ITSH cost incurred to supply WFP
wheat.
Every year the program covers approximately 450,000 workers.
They are organized in groups and work for a period of
approximately100 days. It is expected that in the 1996-8 period
they will build 2300 Km of embankments, 400 Km of roads, excavate
1,100 hectares of fish ponds, plant 15.9 million trees in 1996/7and
care of 9 mill old trees.
The GDB runs several FFW programs independently from the donor’s
support. Among them there is the Rural Infrastructure Development
program. Under this channel people are engaged in development work.
They provide the manpower for the construction and maintenance of
the necessary rural infrastructure. These include feeder roads,
embankments and so on. Workers are paid a wage rate of 40 kg of
wheat plus a variable amount depending on the distance to be
covered for moving a 1,000 cubic feet of earth. The resulting wage
rate is 50 to 65 kg of wheat for males and between 65 and 83 kg for
females per 1,00 cubic feet. In practice, each worker receives
approximately 6 kg of wheat per day.
In 1997/8 the size of this programs was 250 thousand tons of
grain (125 thousand tons of rice and 125 thousand tons of wheat).
This program covers approximately 500,000 people every year (assume
approximately 60 days per person, and an average of 6 kg of grain
per person per day).
The Integrated Food for Development Project (IFFD) is managed by
CARE international. It includes the execution of large number of
rural development projects that are implemented in the dry season
using local workers. Labor is paid mostly in cash. A small portion
is of the projects are still implemented as FFW programs. In 1997/8
the size of the program was of 120 thousand tons
The Rural Maintenance Program (RMP) is designed to provide cost
effective maintenance of essential rural roads that have been built
with funds from other FFW programs. In the same time it provides
employment, income and training in necessary survival skills to
destitute rural women. The funds for the project are provided by
CIDA (Canadian AID agency) and the program is managed by CARE. The
funds are given to the GDB in form of wheat, which is monetized by
the GDB.
The participants in this program are selected among female heads
of households who are divorced, widowed, separated or abandoned and
have no means of sustaining themselves. They are organized in
crews. Each crew is composed of 10 destitute women from the same
Union Parishad. They are responsible for maintaining 15Km of roads.
They are paid taka 37 per day. They work 6 hours a day, 6 days a
week. CARE pays for 90 percent of their salary and the Union
Parishad pays for the rest. The salaries are paid directly into a
bank account. A percentage of their salary is deducted from the
bank and is put into a saving account. Thus women are provided with
access to financial institutions and a small capital that can be
used to start a small business when they leave the project. Besides
providing for the maintenanace of the roads, women are also
required to participate in training.
In 1997/8 the size of the program was 50 thousand tons per year.
In 1997/8, the program included 61,000 destitute women in 4,100
Unions in 419 Thanas in 62 districts and maintained 88,000 km of
roads.
Other programs.
The GDB runs a series of smaller targeted programs through
several agencies. These are:
a) The Border Road Program (5 million tons in 1997/8) which is
usually run by the Border Road Development (BDR);
b) The Police & Military Area (16 thousand tons in 1997/8)
run by the Ministry of Defense;
c) The Home Canal Digging (20 thousand tons in 1997/8) which is
implemented by the Water development Board; and
d) The Reserve Program (11 thousand tons in 1997/8) which is run
by the Ministry of Relief.
Special programs.
Finally, there are some special programs that are used in time
of special need or for special groups of individuals.
The Test Relief program (TR) was meant to generate rural incomes
and stimulate production and to provide help to the needy people.
It is a sort of FFW with relief orientation. This program (100
thousand tons in 1997/8) is carried out by the Local Government
Bodies in times of catastrophes and lean season. It contains
elements of seasonal and geographical (for distressed areas)
targeting.
The Gratuitous Program (GR) is run for short-run food security
in time of catastrophes or other special situations (65 thousand
tons in 1997/8).
The Hill Tract program is special program designed for minority
groups (48 thousand tons in 1997/8).
The Food Department, as an implementing agency of the Ministry
of Food was responsible for the following functions:
a) Procurement of foodgrain and foodstuffs like sugar, salt,
edible oil from domestic sources;
b) Receipt of foodgrain and foodstuffs imported from abroad;
c) Movement of foodgrain and foodstuffs from port,
purchase/delivery points to the storage depots;
d) Storage and quality control of all foodgrain/foodstuffs
handled by the Ministry of Food;
e) Construction, maintenance and operation of Silos for bulk
storage and other depots for delivery;
f) Distribution of foodgrain and foodstuffs through rationing
and emergency/relief channels.
Since the early-eighties there had been manifold change in
respect of government’s food policy outlook, strategy and
operational system management. Increased food production, food
entitlement and self-sufficiency in food became the focal point of
all programmes in this sector. Against the changed policy
environment and the government’s intention to manage and operate
country’s overall food system, it became imperative to revise the
mandate and functions of Ministry of Food and Department of Food.
The salient features of the public food operation policy that
emerged are as follows:
a) Support price operation;
b) PFDS to cover more of the poorer and rural population;
c) Reducing overall subsidy on public distribution of
foodgrain;
d) Enhancing open market operation and securing adequate
domestic supply of food;
e) Encouraging private sector to play due role in food
operation;
f) Establishing a dependable national food security system.
The GOB's Food Security System recognizes a need to protect the
consumer from unreasonable price increases as well as to protect
the farmer from decreased prices. The essence of the Food Security
Reserve system is to build up reserves during the surplus period
and use them during the period of scarcity by moving quickly and
aggressively into the market distribution system and open market
sales. The GOB's involvement in national food policy management has
undergone significant changes in recent times.
Despite some improvement in the country's food situation during
the last few years, the overall food security reserve condition has
continued to remain as precarious as before. Even in years when
production of cereals had been excellent, and the carry over of
stocks had reached a record figure; there were still hunger,
malnutrition, and under-nourishment. Taking into account the
country's vulnerability to crop failure due to natural calamities
like floods, drought, etc., efforts were directed in maintaining a
comfortable reserve stock with the objective to meet such
emergencies, and to stabilize prices. However, this goal depends on
favorable climatic conditions, and timely receipt of generous food
aid from donors. Bangladesh has always failed to reach this reserve
stock level objective.
The government has developed a Food Security System designed
mainly to
(a) stimulate cereal production,
(b) build reserves to ensure adequate supply to consumers at
reasonable prices in the event of a bad harvest and during the lean
seasons, and
(c) develop food system and management strategies.
Figure 1: Food Aid Distribution Flow Chart.
The public foodgrain distribution system faced a big challenge
after the liberation of Bangladesh in 1971. Rehabilitation of
returning refugees and displaced families called for public
distribution of foodgrains on a gigantic scale. The problem was
compounded by the insufficient transport system, which was heavily
damaged by the war of liberation. Average monthly off-take of
foodgrains in 1972/73 was more than 200,000 tons and the stocks
dwindled to an alarming level of only 136,000 tons. Languishing
public distribution system faced a real stress in fighting famine
of 1974 caused by floods. About 535,000 tons of food crops were
washed away, with the government stocks of foodgrains reaching a
hard bottom of only 106,000 tons, the lowest ever. The nation
realised, at the cost of thousand of lives, that famine could have
been averted if there was a proper food policy to maintain
emergency stocks of foodgrains. Official food policies since the
1960 emphasized increased production as a solution to poverty
without perceiving how increased output could reach the poor in a
situation of widespread unemployment.
2. Storage
Storage of food grains is one of the old age techniques of
marketing for future consumption. As the crops grown in one time it
is essential to keep for consumption till the another crop is
harvested and coming in the market. The producer sale the surplus
crop in the market to meet up the demand for the people. At that
time the marketable surplus of food grain was very little. But
whatever the volume of production there was also need of storage at
homestead and at trade level. According the marketable surplus has
become almost double in the recent year. When it has been fully
commercialized the need and importance of storage has also enhanced
for internal as well as external marketing (Williams and Wright,
1992).
2.1Need for Storage
1. As the crop is seasonal it is essential to keep the produce
for future consumption.
2. At the commercial view point the profitability ascertained to
supply the produce in the lean period for achieving high price.
3. To maintain the smooth and regular supply in the markets.
4. To minimize the regional price variation of the produce.
5. To ascertain the incentive price to the grower if they could
avail the storage/credit facilities in a minimum costs.
6. Product quality can be ascertained.
7. To maintain the regular supply in the export markets.
8. Minimize seasonal variation of prices.
9. Encouragement of increases future production.
10. Possibilities of the equal distribution of the crop
throughout the country.
Following types of storage system now prevailing in the
country:
1. Homestead storage.
2. Trade level storage.
3. Mill cum trade level storage.
4. Automatic milling storage.
5. Government storage for buffer stock.
6. Model storage system.
While storage facilities and functions assumes great importance,
particularly in the case of subsistence crop, little is known about
the various aspects of the storage of rice and paddy. the district
wise food grain public storage capacity is shown in Table-2 &3.
The anti-hoarding acts have resulted in a highly distorted and
clandestine storage pattern by the private dealers to such an
extent that it is even difficult to identify the institutions that
perform these important marketing functions. The big rice-millers
have large storage godowns in their compounds. Possibly they
perform a considerable part of this function in the area they are
located. The traders at the primary market do not have any storage
facilities in the market. It seems likely that the small traders
and Farias use their own shows as the major places of storage. In
the secondary and distribution markets the Aratdars posses by far
the largest markets. It seems that most of the Aratdars also own or
rent storage spaces outside the market place. Considering all these
it seems likely that the Aratdars perform the major share of the
storage function at the trader level. In the absence of warehouses
in the markets, the traders have no other option but to use the
facilities offered by the Aratdars, an implication with noting
concerning the competitive position of the traders.
Table 2:Districtwise Foodgrain Storage Capacity and Stock on
September 21, 2000
(m. tons)
Sl.
No.
District
LSD/CSD
Silo
Total PFDS Stock on 21/9/00
Capacity
Effective Capacity
Current Use %
Stock on September 21, 2000
Effective Capacity
Wheat Stock
Total
Rice
Paddy
Wheat
RAJSHAHI DIVISION
1
DINAJPUR
72805
61000
93%
56679
41798
4451
10430
56679
2
THAKURGAON
26500
26500
78%
20643
15653
1329
3661
20643
3
PANCHAGARH
17750
16500
73%
12072
10177
787
1108
12072
4
RANGPUR
15000
15000
97%
14540
12349
1244
947
14540
5
LALMONIRHAT
10000
10000
85%
8542
5716
1110
1716
8542
6
NILPHAMARI
18500
18000
76%
13656
9937
1997
1722
13656
7
KURIGRAM
20000
17500
77%
13397
8565
1238
3594
13397
8
GAIBANDHA
24600
24300
70%
16948
15346
369
1233
16948
9
BOGRA
76345
55100
87%
47828
45375
339
2114
25000
7167
54995
10
JOYPURHAT
16400
16150
104%
16717
15966
54
697
16717
11
RAJSHAHI
22150
22150
46%
10105
7611
434
2060
10105
12
NAOGAON
34750
34250
30%
10331
4858
1325
4148
10331
13
NATORE
7500
7500
239%
17916
16457
839
620
17916
14
NAWABGANJ
19500
19500
78%
15280
10718
1724
2838
15280
15
PABNA
57040
45530
51%
23148
18377
235
4536
23148
16
SERAJGANJ
25250
25250
55%
13805
8239
2559
3007
13805
Division Total
464090
414230
75%
311607
247142
20034
44431
25000
7167
318774
KHULNA DIVISION
17
KUSHTIA
15000
14000
50%
6981
4201
240
2540
6981
18
CHUADANGA
10000
10000
47%
4734
2812
17
1905
4734
19
MEHERPUR
5000
5000
60%
3008
1608
350
1050
3008
20
JESSORE
19890
19140
64%
12216
7289
1970
2957
12216
21
JHENAIDAH
17500
17500
64%
11247
6443
1858
2946
11247
22
MAGURA
10140
8000
61%
4901
2605
650
1646
4901
23
NARAIL
7640
6500
106%
6900
4205
475
2220
6900
24
KHULNA
134027
82960
85%
70668
61002
103
9563
800
198
70866
25
SATKHIRA
17640
14000
59%
8311
4847
2265
1199
8311
26
BAGERHAT
16500
16500
62%
10245
4370
194
5681
10245
Division Total
253337
193600
72%
139211
99382
8122
31707
800
198
139409
BARISAL DIVISION
27
BARISAL
35280
30280
42%
12676
6696
12
5968
12676
28
JHALOKATI
8625
8000
63%
5054
2701
2353
5054
29
PEROJPUR
16000
13000
69%
8916
4778
65
4073
8916
30
BHOLA
27500
14750
58%
8497
4219
4278
8497
31
PATUAKHALI
32140
19640
69%
13466
7873
27
5566
13466
32
BARGUNA
19640
15140
41%
6177
3075
10
3092
6177
Division Total
139185
100810
54%
54786
29342
114
25330
0
0
54786
Continued …. Table 2 Districtwise Foodgrain Storage Capacity and
Stock on September 21, 2000
(m. tons)
Sl.
District
LSD/CSD
Silo
Total PFDS Stock on 21/9/00
No.
Capacity
Effective Capacity
Current Use %
Stock on September 14, 2000
Effective Capacity
Wheat Stock
Total
Rice
Paddy
Wheat
DHAKA DIVISION
33
JAMALPUR
15900
15500
73%
11356
8253
1303
1800
11356
34
SHERPUR
15000
15000
51%
7577
4261
8
3308
7577
35
MYMENSINGH
60310
56250
53%
29869
22254
1180
6435
29869
36
NETROKONA
16500
14500
70%
10220
8569
241
1410
10220
37
KISHOREGANJ
26700
20450
68%
13811
8909
945
3957
13811
38
TANGAIL
33118
33118
58%
19129
14474
116
4539
19129
39
DHAKA
50300
39025
85%
33113
29982
3131
33113
40
GAZIPUR
9000
8500
92%
7842
4813
44
2985
7842
41
NARSINGDI
15750
14250
81%
11555
5977
150
5428
11555
42
NARAYANGANJ
23500
12500
87%
10865
5262
5603
50000
31886
42751
43
MUNSHIGANJ
13140
13140
58%
7643
5376
2267
7643
44
MANIKGANJ
13640
13640
66%
9025
6453
2572
9025
45
FARIDPUR
16500
16500
65%
10783
7086
3697
10783
46
RAJBARI
10640
9500
55%
5220
3633
1587
5220
47
MADARIPUR
19500
18500
41%
7544
4692
2852
7544
48
GOPALGANJ
10500
9500
93%
8866
4549
118
4199
8866
49
SHARIATPUR
11000
10500
80%
8430
4663
0
3767
8430
Division Total
360998
320373
66%
212848
149206
4105
59537
50000
31886
244734
SYLHET DIVISION
50
SYLHET
17900
13010
67%
8658
6870
137
1651
8658
51
MOULIVI BAZAR
11000
7500
120%
8987
6700
37
2250
8987
52
HABIGANJ
18750
15250
90%
13756
9068
261
4427
13756
53
SUNAMGANJ
21400
19900
41%
8108
4531
2450
1127
8108
Division Total
69050
55660
71%
39509
27169
2885
9455
0
0
39509
CHITTAGONG DIVISION
54
COMILLA
33300
23300
94%
21871
12631
16
9224
21871
55
BRAHMANBARIA
16500
15500
90%
13874
9732
112
4030
50000
37404
51278
56
CHANDPUR
21500
13000
95%
12380
7637
4743
12380
57
NOAKHALI
24500
22000
74%
16174
12397
18
3759
16174
58
LAKSHMIPUR
9500
7500
77%
5786
4026
1760
5786
59
FENI
13030
9750
87%
8527
4367
4160
8527
60
CHITTAGONG
151853
108350
73%
79073
22731
30
56312
100000
40457
119530
61
COX’S BAZAR
21000
11000
43%
4715
2773
1942
4715
62
RANGAMATI
6750
6250
60%
3736
2055
1681
3736
63
KHAGRACHARI
6250
5250
75%
3915
2262
1653
3915
64
BANDARBAN
3500
3000
73%
2199
1001
1198
2199
Division Total
307683
224900
77%
172250
81612
176
90462
150000
77861
250111
Bangladesh
1594343
1309573
71%
930211
633853
35436
260922
225800
117112
1047323
3. Storage and Food Security System
Storage plays an important role at various stages of food
management and operations, and is an integral part of any food
security system. Interventions in the food sector and food security
reserve programmes require substantial capacity for storing and
distributing food. The maintenance of a continuous flow of food
from one point to another point needs sufficient storage capacity
at each point in the food chain. Some grains require additional
drying before they can be stored. They must be milled after being
taken out of storage and before they can be consumed. Modern large
scale commercial processing is required as the scale of
procurement, storage and marketing of grains increase.
Where output is variable, more storage and better transport is
needed. Food security for vulnerable groups (low income families,
infants, nursing and pregnant woman) is not necessarily assured by
building up large reserves in central facilities. Such stock piles
have only marginal impact outside urban centres and mean little
when harvests fail country-wide. Hence, the need for more localized
storage facilities as part of a national food security system is
paramount.
As experienced in the past, the lack of desired storage capacity
in the major production and procurement areas generates problems
like:
· difficulties in procurement and farmgate price support
operations;
· excessive losses due to storage of procured grains in marginal
facilities, and
unnecessary strain on the transport system caused by significant
double and triple movement and transfer of foodgrains.
The lack of storage capacity in areas prone to natural
disasters, prolonged droughts or seasonal flooding may also result
in delayed response to relief needs and the spreading of famine
condition before counter measures can be launched.
In addition to rice and wheat, the Ministry of Food needs to
store various commodities such as salt, edible oil, sugar,
operational equipments, empty gunny-bags, fumigants, etc. The space
required for this purpose is estimated to average between 15 to 20
percent of all warehouse space through out the entire storage
system thus reducing the nominal storage capacity available for
foodgrain operations by a substantial degree. In realization of the
growing need for adequate and proper storage facilities in the
shortest possible time, the government plans to construct storage
facilities for at least 2.0 million tons capacity by the end of
Third Five Year Plan, i.e. by 1980/90.
In the chronic food deficit economy of Bangladesh, the post
harvest loss due to traditional processing system is obviously a
problem to the country's food policy and strategies. Improved
processing system can produce higher output of rice and quality
by-products and can reduce the storage, transit and handling losses
as well as reduce post-harvest losses to a great extent.
Table 3:Districtwise Foodgrain Storage Capacity and Stock on
September 14, 2000
(m. tons)
Sl.
No.
District
LSD/CSD
Silo
Total PFDS Stock on 21/9/00
Capacity
Effective Capacity
Current Use %
Stock on September 14, 2000
Effective Capacity
Wheat Stock
Total
Rice
Paddy
Wheat
RAJSHAHI DIVISION
1
DINAJPUR
72805
61000
94%
57090
41941
4683
10466
57090
2
THAKURGAON
26500
26500
79%
20892
15825
1329
3738
20892
3
PANCHAGARH
17750
16500
78%
12907
10965
813
1129
12907
4
RANGPUR
15000
15000
99%
14803
12417
1258
1128
14803
5
LALMONIRHAT
10000
10000
88%
8759
5565
1344
1850
8759
6
NILPHAMARI
18500
18000
77%
13893
10055
1997
1841
13893
7
KURIGRAM
20000
17500
80%
14037
8921
1364
3752
14037
8
GAIBANDHA
24600
24300
71%
17198
15493
409
1296
17198
9
BOGRA
76345
55100
87%
47808
45495
580
1733
25000
6649
54457
10
JOYPURHAT
16400
16150
97%
15664
14903
70
691
15664
11
RAJSHAHI
22150
22150
45%
9885
7546
454
1885
9885
12
NAOGAON
34750
34250
66%
22537
16225
2093
4219
22537
13
NATORE
7500
7500
84%
6319
4722
899
698
6319
14
NAWABGANJ
19500
19500
83%
16223
11655
1724
2844
16223
15
PABNA
57040
45530
53%
23977
19099
243
4635
23977
16
SERAJGANJ
25250
25250
53%
13389
7989
2791
2609
13389
Division Total
464090
414230
76%
315381
248816
22051
44514
25000
6649
322030
KHULNA DIVISION
17
KUSHTIA
15000
14000
50%
6981
4201
240
2540
6981
18
CHUADANGA
10000
10000
47%
4734
2812
17
1905
4734
19
MEHERPUR
5000
5000
60%
3008
1608
350
1050
3008
20
JESSORE
19890
19140
64%
12216
7289
1970
2957
12216
21
JHENAIDAH
17500
17500
64%
11247
6443
1858
2946
11247
22
MAGURA
10140
8000
61%
4901
2605
650
1646
4901
23
NARAIL
7640
6500
106%
6900
4205
475
2220
6900
24
KHULNA
134027
82960
85%
70668
61002
103
9563
800
198
70866
25
SATKHIRA
17640
14000
59%
8311
4847
2265
1199
8311
26
BAGERHAT
16500
16500
62%
10245
4370
194
5681
10245
Division Total
253337
193600
72%
139211
99382
8122
31707
800
198
139409
BARISAL DIVISION
27
BARISAL
35280
30280
42%
12676
6696
12
5968
12676
28
JHALOKATI
8625
8000
63%
5054
2701
2353
5054
29
PEROJPUR
16000
13000
69%
8916
4778
65
4073
8916
30
BHOLA
27500
14750
58%
8497
4219
4278
8497
31
PATUAKHALI
32140
19640
69%
13466
7873
27
5566
13466
32
BARGUNA
19640
15140
41%
6177
3075
10
3092
6177
Division Total
139185
100810
54%
54786
29342
114
25330
0
0
54786
Continued Table 3…. Districtwise Foodgrain Storage Capacity and
Stock on September 14, 2000
(m. tons)
Sl.
District
LSD/CSD
Silo
Total PFDS Stock on 14/9/00
No.
Capacity
Effective Capacity
Current Use %
Stock on September 14, 2000
Effective Capacity
Wheat Stock
Total
Rice
Paddy
Wheat
DHAKA DIVISION
33
JAMALPUR
15900
15500
73%
11356
8253
1303
1800
11356
34
SHERPUR
15000
15000
51%
7577
4261
8
3308
7577
35
MYMENSINGH
60310
56250
53%
29869
22254
1180
6435
29869
36
NETROKONA
16500
14500
70%
10220
8569
241
1410
10220
37
KISHOREGANJ
26700
20450
68%
13811
8909
945
3957
13811
38
TANGAIL
33118
33118
58%
19129
14474
116
4539
19129
39
DHAKA
50300
39025
85%
33113
29982
3131
33113
40
GAZIPUR
9000
8500
92%
7842
4813
44
2985
7842
41
NARSINGDI
15750
14250
81%
11555
5977
150
5428
11555
42
NARAYANGANJ
23500
12500
87%
10865
5262
5603
50000
31886
42751
43
MUNSHIGANJ
13140
13140
58%
7643
5376
2267
7643
44
MANIKGANJ
13640
13640
66%
9025
6453
2572
9025
45
FARIDPUR
16500
16500
65%
10783
7086
3697
10783
46
RAJBARI
10640
9500
55%
5220
3633
1587
5220
47
MADARIPUR
19500
18500
41%
7544
4692
2852
7544
48
GOPALGANJ
10500
9500
93%
8866
4549
118
4199
8866
49
SHARIATPUR
11000
10500
80%
8430
4663
0
3767
8430
Division Total
360998
320373
66%
212848
149206
4105
59537
50000
31886
244734
SYLHET DIVISION
50
SYLHET
17900
13010
67%
8658
6870
137
1651
8658
51
MOULIVI BAZAR
11000
7500
120%
8987
6700
37
2250
8987
52
HABIGANJ
18750
15250
90%
13756
9068
261
4427
13756
53
SUNAMGANJ
21400
19900
41%
8108
4531
2450
1127
8108
Division Total
69050
55660
71%
39509
27169
2885
9455
0
0
39509
CHITTAGONG DIVISION
54
COMILLA
33300
23300
94%
21871
12631
16
9224
21871
55
BRAHMANBARIA
16500
15500
90%
13874
9732
112
4030
50000
37404
51278
56
CHANDPUR
21500
13000
95%
12380
7637
4743
12380
57
NOAKHALI
24500
22000
74%
16174
12397
18
3759
16174
58
LAKSHMIPUR
9500
7500
77%
5786
4026
1760
5786
59
FENI
13030
9750
87%
8527
4367
4160
8527
60
CHITTAGONG
151853
108350
73%
79073
22731
30
56312
100000
40457
119530
61
COX’S BAZAR
21000
11000
43%
4715
2773
1942
4715
62
RANGAMATI
6750
6250
60%
3736
2055
1681
3736
63
KHAGRACHARI
6250
5250
75%
3915
2262
1653
3915
64
BANDARBAN
3500
3000
73%
2199
1001
1198
2199
Division Total
307683
224900
77%
172250
81612
176
90462
150000
77861
250111
Bangladesh
1594343
1309573
71%
933985
635527
37453
261005
225800
116594
1050579
Storage plays the key role in the entire process of procurement.
Under given situations of price and supplies, the level of
procurement is functionally related to that of the storage
facilities. Many individual facilities serve primarily or even
exclusively only one particular objective and are only marginally
or indirectly relevant for the achievement of others. Given the
district demarcation of (relative) foodgrain surplus and deficit
regions, the substantial difficulties of inter-regional
transportation, the fact that most "surplus" areas are only so
during certain months each year, and the highly skewed distribution
of rice milling capacity between the major foodgrain production and
consumption areas, most storage space is in fact utilized for one
or two specific purposes only, such as, procurement, transit
handling or distribution.
3.1 Foodgrain Storage Capacity and Its Utilization
3.1.1 Foodgrain Storage Capacity
The Ministry of Food owns and operates and extensive system of
grains storage facilities throughout the country (Table 4-21).
Within this system, there are three major categories of storage
facilities:
· Thirteen relatively large depots called Central Storage Depots
(CSDs), administered by the Ministry's Directorate of Movement and
Storage;
· Smaller depots called Local Supply Depots (LSDs), administered
by the Directorate of Supply and Distribution; and
· Five foodgrain silos, administered by the Directorate of
silos.
In addition, MoF utilizes warehouse space leased form other
public sector agencies or from the private sector. The Ministry of
Food (MoF) now owns storage facility rated at 1.85 million tons.
This storage space includes some of the newly constructed godowns,
possession godowns taken form LG Division (159 units at 250 tons
each) and hired godowns of 2,300 tons. Construction and
rehabilitation of godowns (on- going and in pipeline) under various
programmes has been undertaken under the Third Five Year Plan. All
these new schemes when completed would provide a maximum storage
capacity of about 1.94 million tons (for rice, wheat and salt).
The MoF storage system currently functions within an environment
of underdeveloped transport and communication infrastructure, and
limited and less-than satisfactory ancillary service facilities.
Among the internal difficulties which impede the system's capacity
are its historical bias towards large urban distribution points,
the run-down condition of many of its facilities, the multiplicity
of purposes it is required to serve, lack of adequate transport and
operating equipment, poor maintenance, lack of spare parts,
insufficient staff in crucial categories (e.g. motor vehicle
technicians, pest control specialists), low salaries for essential
technical staff, such as, maintenance engineers, and often
inadequate security provisions to prevent pilferage. External
constraints on the system include the weak domestic transport
system, the uneven distribution of rice milling capacity throughout
the country, the monsoon climate which for some eight months during
the year threatens massive spoilage of grains, the scarcity of
paddy drying equipment in the villages and at MoF storage
facilities, and the highly seasonal nature of foodgrain production
which creates very uneven demand on transport, drying, milling and
storage capacities. Some of these issues are discussed briefly in
the following paragraphs.
Many godowns are dilapidated and require substantial repair.
Some have outlived their useful life. In 1977, it was estimated
that 64 percent of MoF godowns i.e. 730 pucca and 165 non-pucca
godowns (including 77 twin nissen huts at the Khulna CSD and 18 at
the Tejgaon CSD) should be demolished.
Dilapidated or defective warehouses are a major factor
contributing to the high incidence of spoilage and losses of stored
grains. These conditions foster the rapid growth of insects and
fungi for 7 to 8 months each year. It poses a serious pest and
spoilage control and prevention problem for MoF, a problem further
aggravated by the sub-standard condition of many godowns. As a
consequence of the geatly increased domestic grain procurement
effort, inspection and control operations have become particularly
crucial during the last ten years and will become more important in
the future. MoF has initiated a considerable expansion and
intensification of its inspection and fumigation operations carried
out by its Directorate of Inspection, Control and Training. This
effort will need further expansion and improvement, however, as
procurement of domestic grains gradually replaces imports as the
main source of MoF grain stock replenishment and as additional
storage facilities are set up throughout the previously neglected
parts of the country. Stock losses caused by insect infestation,
mold and fungi have in the past been substantial and costly.
Transport system in Bangladesh is extremely weak, and it is very
difficult to move large volume of foodgrains from procurement
areas. Recording of handling and storage losses in MoF stock
accounts is currently done in a rather unsatisfactory manner.
Following a physical inventory on or about June 30 of each year,
which gives the actual opening stock level for the next fiscal
year, accounts are then kept by merely adding all new arrivals
into, and deducting all distribution from, the opening stock level.
Adjustments for losses are made only once or twice per year by
simply deducting 3.5 percent of the total quantity of grains that
has entered the MoF system during the period (i.e. opening stocks,
imports and domestic procurement). Month-by-month stock level
records, therefore, fail to take into account the losses during the
rapid stock draw down experienced by MoF in the spring and summer
of 1979. The official "book" stock estimates were misleading
towards the end of the fiscal year when cumulative losses for the
year were already exceeding the 100,000 ton mark, but were not yet
recorded by MoF in its stock accounts. It is critical therefore to
have the deductions for estimated stock losses made every month and
that the assumptions underlying these loss estimates be revised and
made more realistic, instead of arbitrarily assuming a loss rate of
3.5 percent of all grains stored during the year. Loss estimates
(prior to periodic physical inventories) should be based on
historically observed loss rates. A tentative calculations by the
World Bank Mission in 1979 indicate that losses have ranged from
2.6 to 4.1 percent of total turnover of the system (i.e. imports
plus domestic procurement plus total distribution) in recent years
mainly at distribution areas at the peak of the harvest/
procurement season or in transshipment from storage depots to the
stricken areas in the event of a major disaster. This difficulty is
compounded by frequently inclement weather which makes it difficult
to keep the grain dry while in transit.
3.1.2 Foodgrain Storage Capacity Utilization
Capacity utilization of the entire MoF storage system averaged
55 percent in 1976, down from 68 percent in 1975 mainly becauses of
the much higher level of imported stocks on hand. Disparities
between capacity utilisation at CSD and LSDs stem from the high
demand for local transport. Capacity utilization and stock turnover
vary considerably from season to season as warehouses are more
fully and often over utilized during the height of the domestic
procurement drive but remain relatively underutilized the rest of
the year. Other facilities used primarily for grain distribution
operations near urban centres tend to have a more even and
generally higher overall utilization rate. By the same token,
capacity utilization at the Chittagong and Khulna facilities
depends largely on the timing of import shipments. The present
storage position, given the high incidence of transit handling and
the need for frequent stock roll over, (to prevent excessive
spoilage due to the high degree of humidity during most of the
year), the system should not exceed a capacity utilization rate of
about 65 percent at any given time, although individual facilities
may temporarily be loaded considerably above their rated
capacity.
Table 4: Districtwise (Dhaka, Gajipur, Narshingdi, Narayanganj,
Munshiganj and Manikganj) Storage, Stock and Its Capacity
Utilization, 30th September 2002.
(thousand metric tons)
Sl.
No.
District
Name of
LSD
Rated
Capacity
Effective
Capacity
Rice
Stock
Paddy
Stock*
Wheat
Stock
Total
Stock
Utilization
Rate
1
Dhaka
Savar
1500
1200
870
0
10
880
73%
2
Dhamrai
2000
1500
1120
0
315
1435
96%
3
Konakhola
1000
1000
478
0
248
726
73%
4
Kalakopa
1000
850
125
0
106
231
27%
5
Narisha
750
250
11
0
96
107
43%
6
Gajipur
Jaidevpur
2500
2500
1375
0
673
2048
82%
7
Kaliakoir
1000
1000
618
13
216
847
85%
8
Kapasia
2500
2500
1660
0
203
1863
75%
9
Kaliganj
1000
1000
688
1
150
839
84%
10
Sripur
2000
2000
2063
0
170
2233
112%
11
Narsingdi
Narsingdi
5000
4000
3001
108
1497
4606
115%
12
Roypura
2000
2000
1410
180
379
1969
98%
13
Monohardi
2500
2500
1232
128
320
1680
67%
14
Belabo
250
250
121
0
98
219
88%
15
Shibpur
2000
2000
1016
253
849
2118
106%
16
Palash
1000
1000
560
0
389
949
95%
17
Ghorashal
3000
3000
1287
0
0
1287
43%
18
Manikganj
Manikganj
4500
3800
2037
89
1906
4032
106%
19
Balirtek
1500
1200
342
55
418
815
68%
20
Jhitka
1500
1300
158
0
266
424
33%
21
Saturia
1000
800
198
75
642
915
114%
22
Ghior
1500
1200
431
0
432
863
72%
23
Uthuli
1000
800
350
0
443
793
99%
24
Daulatpur
1000
900
147
103
907
1157
129%
25
Singair
1500
1300
186
0
460
646
50%
26
Narayanganj
Murapara
1000
1000
791
0
165
956
96%
27
Sonargaon
1000
1000
878
0
36
914
91%
28
Gopaldi
1500
1500
714
0
844
1558
104%
29
Munshiganj
Mirkadim
6000
5500
713
0
686
1399
25%
30
Katakhali
1500
1000
165
0
78
243
24%
31
Rasulpur
2500
2500
318
0
112
430
17%
32
Sayedpur
1000
1000
485
0
216
701
70%
33
Srinagar
1000
1000
509
0
326
835
84%
34
Abdullahpur
1000
1000
367
0
222
589
59%
Table 5: Districtwise (Faridpur, Madaripur, Gopalganj, Rajbari,
Sariatpur, Sherpur) Storage, Stock and Its Capacity Utilization,
30th September 2002.
(thousand metric tons)
Sl.
No.
District
Name of
LSD
Rated
Capacity
Effective
Capacity
Rice
Stock
Paddy
Stock*
Wheat
Stock
Total
Stock
Utilization
Rate
35
Faridpur
Ambikapur
5000
5000
2716
8
539
3263
65%
36
Boalmari
3000
2500
1172
0
404
1576
63%
37
Nagarkanda
2000
1500
1250
0
173
1423
95%
38
Bhanga
2000
2000
524
0
523
1047
52%
39
Sadarpur
2000
2000
1082
157
193
1432
72%
40
Charbhadrashan
500
500
160
0
232
392
78%
41
Alphadanga
500
500
191
0
153
344
69%
42
Madhukhali
500
500
297
0
61
358
72%
43
Madaripur
Madaripur
3500
2500
993
0
650
1643
66%
44
Char Maguria
3500
2000
609
120
433
1162
58%
45
Shib Char
1000
1000
524
0
291
815
82%
46
Takerhat
8500
7500
2542
0
685
3227
43%
47
Rajoir
500
0
0
0
0
0
48
Kalkini
1000
1000
130
0
0
130
13%
49
Khasher Hat
1000
1000
287
183
170
640
64%
50
Gopalganj
Gopalganj
2500
2000
1144
79
386
1609
80%
51
Sindhua Ghat
1500
1500
1057
1
245
1303
87%
52
Kotali Para
2000
2000
682
41
384
1107
55%
53
Tungi Para
1500
1500
365
0
335
700
47%
54
Bhatia Para
2000
2000
430
60
184
674
34%
55
Kashiani
500
0
0
0
0
0
56
Ramdia
500
500
150
49
81
280
56%
57
Rajbari
Rajbari
3140
3140
1717
0
25
1742
55%
58
Pangsha
2500
2500
914
0
51
965
39%
59
Nalia Gram
1500
1500
602
0
479
1081
72%
60
Goalanda
3500
3500
843
0
227
1070
31%
61
Sariatpur
Angalia
3500
1500
825
18
64
907
60%
62
Damudya
1500
1500
237
0
444
681
45%
63
Gosairhat
2000
1500
500
0
475
975
65%
64
Naria
1000
1000
731
0
26
757
76%
65
Zanjira
1500
1000
255
1
56
312
31%
66
Bhederganj
1500
1500
852
0
405
1257
84%
67
Sherpur
Sherpur
5500
5000
5289
0
103
5392
108%
68
Nalitabari
1000
1000
998
0
83
1081
108%
69
Sribardi
3500
3500
1202
0
108
1310
37%
70
Nakla
1500
1500
351
0
290
641
43%
71
Jhenaigati
3500
3500
1426
0
214
1640
47%
Table 6: Districtwise (Jamalpur, Mymensingh, Kishorganj)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
(thousand metric tons)
Sl.
No.
District
Name of
LSD
Rated
Capacity
Effective
Capacity
Rice
Stock
Paddy
Stock*
Wheat
Stock
Total
Stock
Utilization
Rate
72
Jamalpur
Shinghajani
6400
6000
1060
100
4926
6086
101%
73
Piarpur
500
500
180
0
141
321
64%
74
Sarishabari
3000
2500
70
141
2886
3097
124%
75
Dewanganj
2000
2000
1530
0
543
2073
104%
76
Melandaha
1000
1000
796
0
291
1087
109%
77
Islampur
1000
1000
915
0
90
1005
101%
78
Balijuri
1500
1500
1108
27
327
1462
97%
79
Bakshigonj
500
500
265
0
132
397
79%
80
Mymensingh
Mymensingh
1000
1000
740
0
472
1212
121%
81
Fulbaria
1000
1000
482
79
587
1148
115%
82
Dhala
1000
1000
220
236
384
840
84%
83
Dhanikhola
2000
2000
204
105
2365
2674
134%
84
Gayishpur
1000
1000
22
72
73
167
17%
85
Bhaluka
500
500
139
0
452
591
118%
86
Nandail
3000
2000
794
194
219
1207
60%
87
Ishwarganj
5125
5125
724
107
2087
2918
57%
88
Atharabari
2000
2000
242
67
1620
1929
96%
89
Gouripur
1500
1500
178
0
525
703
47%
90
Shyamganj
2625
2625
307
348
2434
3089
118%
91
Fulpur
3500
3500
1008
0
1229
2237
64%
92
Muktagacha
1000
1000
1422
0
20
1442
144%
93
Haluaghat
4000
4000
1350
77
711
2138
53%
94
Sakuaai
500
500
0
0
0
0
0%
95
Nagla
500
500
334
0
295
629
126%
96
Munshir Hat
1000
500
155
0
64
219
44%
97
Pora Kandulia
1000
1000
161
65
122
348
35%
98
Kalshindur
500
500
0
0
0
0
0%
99
Kishorganj
Kishorganj
6750
6750
1835
40
1494
3369
50%
100
Mithamoin
500
500
83
1
165
249
50%
101
Bhairab
4950
4450
528
67
487
1082
24%
102
Bajitpur
1000
0
0
0
0
0
103
Sharar Char
1000
1000
670
146
26
842
84%
104
Kuliarchar
500
500
257
17
77
351
70%
105
Pakundia
3500
1500
330
0
1
331
22%
106
Hoshen Pur
3000
500
134
7
90
231
46%
107
Karimganj
500
500
263
0
9
272
54%
108
Katiadi
500
500
264
83
33
380
76%
109
Tarail
500
500
146
165
32
343
69%
110
Nikali Dampara
1500
1000
404
17
32
453
45%
111
Bangalpara
1500
1500
101
33
309
443
30%
112
Itna
1000
1000
47
1
17
65
6%
Table 7: Districtwise (Tangail, Netrokona) Storage, Stock and
Its Capacity Utilization, 30th September 2002.
(thousand metric tons)
Sl.
No.
District
Name of
LSD
Rated
Capacity
Effective
Capacity
Rice
Stock
Paddy
Stock*
Wheat
Stock
Total
Stock
Utilization
Rate
113
Tangail
Tangail
2000
1500
827
0
1460
2287
152%
114
Bishwas Betka
7750
6500
2133
0
4660
6793
105%
115
Karatia
1368
1200
359
0
905
1264
105%
116
Mirjapur
2500
2000
986
57
1271
2314
116%
117
Nagarpur
2000
2000
519
93
560
1172
59%
118
Kalihati
1500
1500
924
0
741
1665
111%
119
Madhupur
3000
3000
2092
0
428
2520
84%
120
Dhanbari
2500
2500
2314
14
379
2707
108%
121
Gopalpur
2000
1800
1651
5
699
2355
131%
122
Ghatail
2000
2000
1547
0
723
2270
114%
123
Sakhipur
2500
2500
945
31
523
1499
60%
124
Bashail
1500
1500
575
0
304
879
59%
125
Bhuapur
2250
2000
774
0
1480
2254
113%
126
Delduar
500
500
218
5
181
404
81%
127
Netrokona
Netrokona
2500
2500
665
0
1728
2393
96%
128
Thakur Kona
2000
1500
347
0
2261
2608
174%
129
Purbadhala
1500
1000
673
0
795
1468
147%
130
Jaria
3000
3000
565
0
2603
3168
106%
131
Barahatta
1000
500
253
0
80
333
67%
132
Baushi
500
500
0
276
0
276
55%
133
Birishiri
1000
1000
289
143
474
906
91%
134
Mohanganj
1500
1500
443
0
421
864
58%
135
Kendua
500
500
101
96
60
257
51%
136
Madan
500
500
128
112
83
323
65%
137
Aatpara
500
500
42
167
186
395
79%
138
Khaliajuri
500
500
160
0
241
401
80%
139
Lepshia
1000
1000
0
351
0
351
35%
140
Kalmakanda
500
500
307
19
208
534
107%
Table 8: Districtwise (Rajshahi, Nawabganj, Natore, Naogaon)
Storage, Stock and Its Capacity Utilization, 30th September
2002.
(thousand metric tons)
Sl.
No.
District
Name of
LSD
Rated
Capacity
Effective
Capacity
Rice
Stock
Paddy
Stock*
Wheat
Stock
Total
StockUtilization
Rate
141
Rajshahi
Rajshahi
5000
5000
803
0
1994
2797
56%
142
Nawhata
1250
1000
279
64
584
927
93%
143
Mohonpur
625
500
267
0
38
305
61%
144
Bhabaniganj
1250
1000
902
0
133
1035
103%
145
Tanore
2500
2000
1119
16
1177
2312
116%
146
Kamarganj
650
500
556
0
77
633
127%
147
Godagari
3250
3000
1284
377
621
2283
76%
148
Khature Road
500
500
405
0
136
542
108%
149
Puthia
3000
2000
767
4
972
1743
87%
150
Durgapara
625
500
204
0
67
271
54%
151
Bagha
500
500
231
0
138
368
74%
152
Char Ghat
3500
2250
346
41
378
765
34%
153
Nawabganj
Nawabganj
5000
5000
3077
574
462
4113
82%
154
Amnura
2750
2750
954
0
1227
2181
79%
155
Nachole
2500
1500
1334
0
92
1426
95%
156
Rohanpur
6250
6250
3410
75
1041
4526
72%
157
Dewpura
1500
1500
0
0
0
0
0%
158
Bholahat
500
500
158
35
197
390
78%
159
Shibganj
1000
1000
579
164
160
902
90%
160
Natore
Natore
3000
3000
2193
103
261
2558
85%
161
Singra
1000
1000
618
111
91
