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Bumper crops, producer incentives and persistent poverty

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Author Info

  • Dorosh, Paul A.
  • Shahabuddin, Quazi
  • Aziz, M. Abdul
  • Farid, Naser

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.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series MTID discussion papers with number 43.

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Date of creation: 2002
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Handle: RePEc:fpr:mtiddp:43

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Related research

Keywords: Food relief Bangladesh. ; Food security. ; Development projects. ; Rice Prices Bangladesh. ; Wheat Prices. ;

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References

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  1. Stephen Coate, 1987. "Cash Versus Direct Food Relief," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 724R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Citations

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Cited by:
  1. Abdulai, Awudu & Barrett, Christopher B. & Hazell, Peter, 2004. "Food aid for market development in Sub-Saharan Africa," DSGD discussion papers 5, International Food Policy Research Institute (IFPRI).
  2. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MTID discussion papers, International Food Policy Research Institute (IFPRI) 45, International Food Policy Research Institute (IFPRI).
  3. Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MTID discussion papers, International Food Policy Research Institute (IFPRI) 52, International Food Policy Research Institute (IFPRI).
  4. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MSSD discussion papers, International Food Policy Research Institute (IFPRI) 46, International Food Policy Research Institute (IFPRI).
  5. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MTID discussion papers, International Food Policy Research Institute (IFPRI) 47, International Food Policy Research Institute (IFPRI).
  6. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MTID discussion papers, International Food Policy Research Institute (IFPRI) 51, International Food Policy Research Institute (IFPRI).
  7. del Ninno, Carlo & Dorosh, Paul A., 2002. "In-kind transfers and household food consumption," FCND discussion papers, International Food Policy Research Institute (IFPRI) 134, International Food Policy Research Institute (IFPRI).
  8. Minot, Nicholas & Daniels, Lisa, 2002. "Impact of global cotton markets on rural poverty in Benin," MSSD discussion papers, International Food Policy Research Institute (IFPRI) 48, International Food Policy Research Institute (IFPRI).
  9. Mohajan, Haradhan, 2013. "Food, Agriculture and Economic Situation of Bangladesh," MPRA Paper 54240, University Library of Munich, Germany, revised 18 Aug 2013.
  10. Mohajan, Haradhan, 2013. "Food and nutrition of Bangladesh," MPRA Paper 53527, University Library of Munich, Germany, revised 11 Nov 2013.
  11. Shahidur Rashid, 2004. "Spatial Integration of Maize Markets in Post-liberalised Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 13(1), pages 102-133, March.
  12. Christopher B. Barrett, 2006. "Food Aid’s Intended and Unintended Consequences," Working Papers, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) 06-05, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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