Country Report Bangladesh April 2011

Economic policy: The government adopts a food-security programme

The government has adopted a plan to ensure food security over the next five years. The main thrust of the programme, which is known as the Country Investment Plan (CIP), will be to increase public investment in agriculture, food security and nutrition, with a total budget of US$8bn for 2011-15. The CIP includes 12 priority investment measures, to be partly funded by government and partly by funds provided by the country's development partners. The programmes will also help to spur job-creation in various sectors ranging from forestry and fisheries to water resources. The CIP aims to reverse a trend that threatens the country's food security: a secular decline in public-sector investment in agriculture. The move comes as Bangladesh builds up food stocks as insurance against future supply shocks. The government is importing 2.2m­3m tonnes of food grain in fiscal year 2010/11 (July-June), up from around 550,000 tonnes in 2009/10. Meanwhile, the rate of inflation stood at 9% in January, compared with 8.3% in the year-earlier period. Food-price inflation stood at 11.9% in January-the highest rate recorded in more than two years.

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