Files
Abstract
Food aid has played a useful role in Government of Bangladesh efforts to
increase food security in the last three decades, adding to foodgrain availability,
supplying wheat for targeted distribution to poor households, and helping to
finance development projects and programs. However, sustained increases in
domestic production of both rice and wheat have increased the likelihood of
disincentive effects arising from continued large inflows of food aid.
The analysis shows that if good rice harvests continue so that real rice
prices remain at their levels of 2000, and if international wheat prices return to
their average 1995-99 levels, then public wheat distribution may need to be cut
to levels below the current amount of food aid received (650 thousand tons in
2000/2001) to avoid reducing domestic prices below import parity.
However, resources will continue to be required for programs that
increase access to food by the poor, contribute to increased utilization of food
and result in improved nutritional outcomes, even if the need for food aid to
increase availability of foodgrains diminishes.