TAMING THE RUNAWAY INFLATION

Workers sun dry Aman paddy at a rice processing mill in Dhamrai. The rain-fed rice output or Aman crop is expected to fall as much as 15 per cent this year due to repeated floods and excessive rainfall. Last week, the government floated an international tender to purchase 50,000 tonnes of rice, its first in three years amid dwindling supplies and a surge in prices of the staple grain. The prices of the grain have spiralled about 50 per cent since March, amid the coronavirus pandemic that has pushed local prices to record highs due to panic buying. Subsequently, inflation hit a five-year high of 6.4 per cent in October. Last month, food inflation climbed 84 basis points to 7.3 per cent, largely due to the increase in the price of rice.