Bangladesh raised the price the government will pay to farmers for the upcoming season's rice to 33 taka ($0.42) a kilogram, up from 31 taka a year ago, the food minister said on Sunday. The government will buy 300,000 tonnes of rice from local farmers starting from December 1, Mohammad Kamrul Islam told reporters.
"The purchase will boost our reserves as well as ensure a fair price for farmers," he said.
Such procurement is crucial for the South Asian nation to feed its poor and keep domestic prices stable. The government buys rice and wheat from local farmers to ensure a support price, build stocks for state welfare programmes and to meet emergency needs.
Bangladesh aims to produce more than 34 million tonnes of rice in the current year, up from nearly 33.5 million tonnes in the previous year.
The world's fourth-biggest producer of rice, Bangladesh consumes almost all of its production to feed its population of 160 million, but often needs imports to cope with shortages caused by natural calamities such as floods or droughts.
The state grains buyer will import 20,000 tonnes of wheat at $245 a tonne in a government-to-government deal with Russia, as part of an effort to ensure food supplies.