FY 1982 evaluation of the Bangladesh title III food for development program

480 Title III Food for Development program in Bangladesh. Special evaluation covers the period 3/82-9/82 and is primarily based on site visits. Progress has varied by component. Under the open market sales (OMS) program, foodgrain prices have generally been set as required and seem to have constrained consumer prices, although this impact has been weakened by restrictions imposed by local Government of Bangladesh (GOB) officials in regard to lot size, choice of commodity, and resale quantities and prices. Although modified rationing offtakes for the Public Food Distribution System (PFDS) far exceeded those of OMS through FY 1981-82, the GOB has made considerable progress in restructuring the ration system and the PFDS is being effectively reduced despite economic hard times. A 12/1/82 law will put the ration price above the procurment price - a milestone in food and agriculture policy. In order to give farmers an incentive to increase output, the GOB has effectively kept procurement prices for rice at a realistic level. Despite GOB efforts to expand cotton spinning mills, economic conditions prevented the building of new private mills during 1982. The GOB is pursuing the disinvestment of a large segment of the country"s spindlage and power loom capacity. Due to the limited receiving capacity of Chittagong port for bulk oil and a number of other constraints, only 14,000 MT"s of crude degummed soybean oil were shipped under the Title III program during FY 1982, although 10,000 MT of refined oil were shipped. Projects supported in part by Title III local currency generations (LCG) should be reviewed annually. Also, improved LCG allocation and disbursement procedures are suggested. Development of the Food and Fertilizer Planning and Monitoring Secretariat has progressed adequately, although its economics section is not yet operational. It has made good progress in tackling medium- and long-term food policy programs. As part of the GOB"s Medium-Term Foodgrain Production Plan, a host of foodgrain production/distribution, water control, and research/extension projects are in the process of being implemented. However, the inputs needed to meet the target of food self-sufficiency by 1985 will not be available within the Plan"s time frame.