Production and marketing must be kept up

Coronavirus has devastated the economy of the entire world. Innumerable people are without jobs. Many well-to-do families today are in a crisis. This is true of Bangladesh, too. Over the past few years we have had a steadily growing economy. The social safety net has expanded. The number of ultra poor was on a decrease. Many were being able to earn a living in dignity. Then suddenly calamity struck and the economy faced devastation.

The general holiday, closure or lockdown began on 26 March. It was being relaxed in some cases. If things deteriorate further, maybe a different decision will have to be taken.

In this situation, the government is providing assistance to those who have lost their livelihood. Non-government organisatons and individuals have also been distributing relief. Of course, requirements are not limited to rice and dal (lentils). Those who have been living a fairly good life, are now at a loss, bereft of cash. It is not possible for the government to provide all essential commodities. The government can open up people’s sources of earning so that they may survive on their own earnings.

The need for the lockdown is understandable. But the people who have lost their source of earning must also be taken into consideration. The government is proceeding in that direction, albeit slowly. It has to do so.

It also must ensure the supply of consumable goods. The market must be conducive to both the buyer and the seller. There are many difficulties to this and there were problems before. But these have been exacerbated further by the lockdown. The main problem is in management. Our market management facilitates neither the buyer nor the seller.

It is essential important to ensure food security. Rice is all-important. The boro rice crop is being harvested in the haors (wetlands). Production this season is 20 million tonnes. In order to ensure that this crop is not wasted, the ‘stay home’ policy is being reversed there, to ‘come out and cut the crops’. That is ground reality. Given the shortage of local workers, workers from outside are being given encouragement and incentive to come to harvest the crops.

The agriculturalists are also urging the government to make sure than not an inch of arable land lies uncultivated. Farmers are unwilling to grow crops at a loss, but the rice cultivators have been seeing a steady loss over the last couple of years. Things may look up. Vegetables and other crops were profitable, but coronavirus has changed everything. The farmers are having to sell their produce at negligible rates. Consumers’ demand has dwindled along with dwindling purchasing power. Irregular and inadequate supply is having a negative impact on the market system. Specific timings are being enforced in various markets to protect the people from the virus. Buying and selling can continue to markets while maintaining social distancing.

The wholesale marketing and supply system has been hit the hardest. The city wholesale hubs have lessened their imports from outside of the city as the retail demand has gone down.

Also, extortion by certain student and youth organisations has made it difficult to bring in goods from the small town (mofussil) wholesale hubs. In some cases the law enforcement is also collecting ‘toll’. Goods in these hubs lie unsold as there are not enough wholesalers buying from them.

The consumers ultimately are having to pay the price of transport shortage and communication problems. The sellers want to charge the highest they can from whoever comes to buy from them. But the producers are forced to sell their produce at negligible prices as there are not enough buyers. Only the middlemen are making money.

The transportation of agricultural produce should not have been obstructed by the lockdown, but that has happened. Decomposable agricultural produce is rotting.

Flower growers of Jashore and Jhenaidah have counted around Tk 1.5 billion in losses during Pahela Baishakh, the Bangla New Year. The flower market is not likely to recover any time soon. It will be extremely costly and time consuming to build up this market again unless measures are taken to sustain it. The government must rapidly implement the various stimulus packages that it has announced. Delay will dish hopes of results.

An English national daily has reported that very soon there will be a crisis of chicken and duck eggs. Prices have plummeted due to falling demands and obstructions in the supply system. It takes Tk 32 to rear a one-day-old chick, but it is having to be sold for Tk 1 or 2. Thousands of chicks have been destroyed. The production of chicks has fallen from 14 million to 7 million or 7.5 million. The price of eggs is low too. The poultry industry and all involved have been dealt a blow. However, soon the demand for poultry will increase and prices will shoot up.

Production costs of cow’s milk is Tk 50 to 60 per litre, but is being sold for Tk 20 to 25 per litre. We have limited technology to produce milk products like powdered milk, ghee, butter, cheese, etc. If the government took strong initiative in this regard, the crisis could be somewhat curtailed. It is imperative that the farmers get the stimulus funds immediately.

The fish farmers face the same predicament. While fish is hard to get in the cities and towns, the prices have sunk low in the fish farms, sometimes even down to half. Production costs are not even being covered. Yet the fish farmers are supposed to stock fish fry this season. Fish feed and fish medicine suppliers are to be paid. This situation has emerged due to unwarranted intervention in the market system.

We cannot overlook the necessity to stay at home in order to tackle coronavirus. But if such a stringent lockdown is enforced on farm workers, the supply system and even a consumer level, the supply chain will collapse. And that has happened. The producers and the consumers are both being harmed. The consumers are having to buy fish at exorbitant rates.

Coronavirus has not only affected our health system, but it has harmed our economy and our society too. But the people continue to fight.

The stimulus packages announced by the government must be provided immediately. Initiative must be taken now to rebuild the damaged economy. Quick and easy implementation of the government’s stimulus packages must be ensured. If we take action from now, we can get positive results from the stimulus, particularly in the agricultural sector.

If we are lax, the negative impact will have a far-reaching effect. It is justified and timely to call for higher production, but it is also not impossible for the government to ensure a profitable marketing system for the produced goods. Any obstruction to this should be considered a crime and dealt with accordingly.

If all agencies of the government are called upon for assistance, things will take a positive turn. This must be done fast. Unless the producers have assurance of selling their goods for fair price, they will hesitate to take up work again.

Ali Imam Majumder is a former cabinet secretary. He may be reached at majumder1950@gmail.com