Title III : food for development program, FY 1985 evaluation of the Bangladesh program

Special evaluation covers the period 7/83-9/85; methodology is not stated. The Government of Bangladesh (BDG) displayed great ability in anticipating and preparing for the potential crisis in food supply resulting from a drought and subsequent flooding in 1984. Responsible management of the Public Food Distribution Service (PFDS) probably averted a serious situation. Consumer prices were constrained and supply was sufficient. Contributing significantly to this success were recent additions to public storage capacity; local transport improvements; improvements in the Food Ministry management and logistical capacity; effective coordination of interministerial relief activities; and targeting of relief operations using a quantitative index of flood damage. However, these effective measures, while avoiding a 1984 famine, ironically now form the base of an excessive supply in 1985. Problems in procurement and storage have developed, resulting in a revival of Marketing Operations (MO) and a rather dormant Open Market Sales (OMS) program. Progress toward restructuring of the PFDS to remove unwarranted subsidies has been incremental, but full elimination of such subsidies through removal of rice in the ration system is a political decision of the highest level, unlikely to be made before the upcoming presidential election. As record local production has tended to keep market prices below OMS trigger prices, OMS offtakes have declined sharply, slowing the generation of local currency. In addition, most of the projects previously financed, in part, by taka generated under the program have now been successfully completed, and the overall rate of taka disbursement has therefore fallen sharply. The Mission and BDG are planning more productive mechanisms for generating local currency by sale of Title III commodities and additional eligible projects. Development of an early-warning mathematical model for agroclimatic forecasting of crop yields has been delayed by computer unavailability. Recommendations address in particular: (1) BDG procurement, management, and distribution of food reserves; and (2) use of local currency generations.