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Bangladesh Makes Urgent Diplomatic Appeal for Rice (DJ)

Source: Dow Jones Newswires
07/01/2008

Dhaka, Jan. 6 - Bangladesh said Sunday it has asked nearby countries to sell it large quantities of rice to help tame price spikes caused by two major natural disasters that ruined crops in the country in 2007.

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Foreign Minister Iftekhar Ahmed Chowdhury called his Indian counterpart Pranab Mukherjee on Saturday to immediately buy half a million metric tons of rice, the foreign ministry said, adding that "Vietnam is responding to the request of a friendly country like Bangladesh, and is willing to sell rice to us."

"Bangladesh would continue her diplomatic initiative with friendly countries to address the issue of food purchase," Chowdhury was quoted as saying, noting the country was importing another 100,000 metric tons from Thailand.

The diplomatic offensive was launched as the price of rice, a main staple food in the impoverished nation of 144 million, spiked to 33 taka ($0.48) per kilogram in the past week.

The government said the imported rice will be used to ease demand by selling it in the open market at a subsidised price.

The price spike is linked to devastating floods in the main rice growing region of the north during July and August followed by a massive cyclone that hit the south coast in November.

The combined disasters killed thousands of people and destroyed rice crops worth $600 million, the agriculture ministry said, threatening to cause widespread hunger among 60 million people who live on less than a dollar a day.

The country's powerful army chief General Moeen U. Ahmed on Friday expressed concern at the spiraling cost of rice.

"We are very much concerned about the price hike," Ahmed was quoted as saying by the private UNB news agency. He added that the situation was compounded by hoarding among the public and mill owners.

The country's military-backed government took power on Jan. 12, 2006, a day after a state of emergency was imposed following months of unrest over vote-rigging allegations which led to national polls being cancelled.

The interim government has pledged to root out corruption in politics before holding a fresh ballot by the end of this year.



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