The government has decided to discontinue the Open Market Sale (OMS) of agricultural products as the market shows signs of stabilization, announced Finance Adviser Dr Salehuddin Ahmed on Tuesday.
Salehuddin talked about this during a press briefing following the Advisery Council Committee meeting on Government Procurement at the Secretariat.
He noted that while OMS programs offer significant subsidies, they are often accessed by well-off individuals, defeating their purpose.
Addressing concerns about inflationary pressures on the public and the suspension of OMS, Salehuddin said: “At present, we have no alternative plans in place. However, if the situation persists, we may revisit the need for alternative measures.”
He clarified that special OMS initiatives are reserved for emergency situations, and the current market conditions do not warrant such measures. However, he assured that the government is prepared to respond if new emergencies arise.
Salehuddin highlighted ongoing challenges within the supply chain, saying: “The supply chain is still controlled by brokers. Rice remains in depots and is not brought to the market. This is not due to a supply shortage but rather manipulation by retailers and wholesalers.” He noted that rice prices have decreased slightly in recent weeks, while other commodities remain relatively stable.
Responding to queries about recent increases in VAT and supplementary duties, Salehuddin said: “The reasons behind these changes will become clear in a few days. We are reviewing the VAT structure, and core tax matters in the upcoming budget will be better coordinated to address these issues.”
During the meeting, the committee approved the import of urea fertilizer to prevent price hikes by private traders. “When the government’s fertilizer stock is low, private traders exploit the situation to increase prices. To mitigate this, we have approved fertilizer imports today,” Salehuddin said.
Additionally, the meeting addressed and approved issues related to rural electrification to enhance electricity access in rural areas.
The finance adviser’s remarks come amid public concerns over inflation, rising VAT, and supply chain irregularities, with the government taking steps to stabilize the economy and address market inefficiencies.
