The estimated average leakage in the Vulnerable Group Development (VGD) programme due to short ration and undercoverage is 8 percent of the total wheat allotment. These losses are low by international and Bangladesh standards, and are due, in part, to monitoring and evaluation throughout the system and women's empowerment at the union level to hold programme managers accountable." from Text

Ahmed, Akhter U.

Rashid, Shahidur

Sharma, Manohar

Zohir, Sajjad

English

Research Papers in Economics

STRENGTHENING FOOD ASSISTANCE AND FOOD POLICY RESEARCH
A Study of Food Aid Leakage in Bangladesh
Linking Research and Action
D
onors support a number of tar-
geted food-based programmes
in Bangladesh that are widely cred-
ited with providing poor people
access to food and improving their
food security. However, inefficien-
cy in the food distribution system
may be hindering the realization of
the full benefits of these pro-
grammes. The International Food
Policy Research Institute (IFPRI)
conducted a comprehensive study
of the efficiency of food distribution
in food aid-supported programmes
in Bangladesh. The capacity and
efficiency of the food distribution
system was assessed from entry
ports to targeted beneficiaries. The
study identified problems in the
whole food distribution system,
determined the level of losses, leak-
ages, and other lapses at various
stages, and recommended solutions.
The study has three components: (1)
food discharge at harbours, (2) the
public food distribution system, and
(3) food distribution to programme
beneficiaries. This brief summa-
rizes the main findings and a few of
the many key recommendations of
the third component of the study.
Insights from IFPRI Research
Food distribution to programme
beneficiaries
The analysis of food distribution at
the beneficiary level focused on the
performance of the Vulnerable
Group Development (VGD) pro-
gramme and the Integrated Food
Security (IFS) programme.
Findings
VGD is well established and widely
known, while the IFS is relatively
new. In both programmes, however,
survey results suggest that benefici-
aries have clear knowledge of their
entitlements and responsibilities—
essential in ensuring minimum lev-
els of social accountability in both
programmes.
Selection into the VGD pro-
gramme is primarily demand-driv-
en, while the IFS programme is
more supply-driven. The study
found no major anomalies in the
selection process of either pro-
gramme. There are problems with
transportation and handling of
grains for distribution at the benefi-
ciary level. While the VGD pro-
gramme has provision to pay food
distribution operators the transport
and handling costs from local sup-
ply depots (LSDs) to distribution
sites, lengthy delays or non-receipt
of transport and handling commis-
sions are reported. Further, the com-
mission is not sufficient to cover the
costs. The survey also indicates
that, on average, 3.5 percent less
wheat is received from LSDs than is
allotted. Another weakness in the
VGD and IFS programmes is the
ration-weighing system at distribu-
tion sites. An absence of standard-
ized weighing techniques and
equipment makes monitoring and
verification of programme perform-
ance difficult.
One of the operating rules of the
VGD programme is that beneficiar-
ies possess their VGD cards.
However, 77 percent of VGD
women did not possess their cards
at the time of the interview. The
majority of them reported that
Union Parishad (UP) officials kept
their cards.
Many beneficiaries reported
selling part of the received wheat
ration, using a sizable portion of the
proceeds to buy rice, the preferred
staple food. Further, VGD benefici-
aries used about 22 percent of the
sales proceeds to make the monthly
savings deposit required by the pro-
gramme.
Estimating leakage due to short
ration is problematic since quanti-
ties of wheat reported by beneficiar-
ies are likely to be riddled with
errors arising from weighing inac-
curacies. For this reason, field sur-
veyors of the study physically
weighed ration amounts received by
the beneficiaries. The estimated
average leakage in the VGD pro-
The estimated average leak-
age in the Vulnerable Group
Development (VGD) pro-
gramme due to short ration
and undercoverage is 8 per-
cent of the total wheat allot-
ment. These losses are low
by international and
Bangaldesh standards, and
are due, in part, to monitor-
ing and evaluation through-
out the system and women’s
empowerment at the union
level to hold programme
managers accountable.
INTERNATIONAL FOOD
POLICY RESEARCH INSTITUTE
sustainable options for ending hunger and poverty
IFPRI
®gramme due to short ration and
undercoverage is 8 percent of the
total wheat allotment. This leakage
estimate corresponds to food distri-
bution from the LSDs to the pro-
gramme beneficiaries. These losses
are low by international and
Bangladesh standards, and are due,
in part, to monitoring and evalua-
tion throughout the system and
women’s empowerment at the
union level to hold programme
managers accountable. 
Implications for Food
Assistance Programming
Recommendations
1. Transportation and handling
costs from the LSD to distribution
centres should be assessed for each
union, and transportation and han-
dling allowances should be allocat-
ed in advance.
2. Care should be taken in selecting
and monitoring the community-
based organizations (CBOs) that
support the IFS user committees.
3. Weighing of rations at distribu-
tion sites should be replaced by
standard volume measures, using
clearly calibrated and tamper-proof
metal buckets.
4. Involuntary sharing of food
rations violates programme rules
and the practice should be
eliminated.
5. The operating rule regarding the
possession of VGD cards should be
strictly enforced.
6. The Government of Bangladesh
and the World Food Programme
(WFP) should monitor programme
activities regularly to observe
whether unauthorized activities
persist in food distribution at the
beneficiary level and to ensure that
the beneficiaries receive good qual-
ity of wheat ration.
The report was submitted to the
Government of Bangladesh in early
October 2003. By December, the
government—with WFP support—
had already implemented some of
the recommendations on a pilot
basis.
Current activities and follow-
up may include
• a pilot test of metal buckets for
distribution in two districts;
• the placement of a WFP
International Logistic Officer in the
WFP country office to assist the
Government of Bangladesh in
remedial action;
•  the formation of two special task
forces by relevant ministries, and
one inter-ministerial technical com-
mittee to implement actions and
follow-up of progress; and
• a review of the Local Transport,
Storage, and Handling (LTSH)
costs matrix, including selected
EDP-based assessment.
Akhter U. Ahmed, Shahidur Rashid, Manohar Sharma, and Sajjad Zohir, in collaboration with Mohammed
Khaliquzzaman, Sayedur Rahman, and the Data Analysis and Technical Assistance Limited (2004), “Food Aid
Distribution in Bangladesh: Leakage and Operational Performance,” International Food Policy Research Institute,
Washington, D.C. Contact author at a.ahmed@cgiar.org.
INSTITUTIONAL CONTACTS:
Food Consumption & Nutrition Division, International Food Policy Research
Institute (www.ifpri.org), 2033 K St., NW, Washington, DC 20006-1002 USA, 
Tel: +1-202-862-5600, Fax: +1-202-467-4439 Email: IFPRI-FCN@cgiar.org
World Food Programme (www.wfp.org), 68/70 via Cesare Giulio Viola,
Parco dei Medici, I-00148 Rome, Italy, Tel: +39-06-65132628,
Fax: +39-06-65132840 Email: Allan.Jury@wfp.org
This IFPRI/WFP brief is based on preliminary research results. Copyright © 2004 International Food Policy Research Institute and World Food Programme. All
rights reserved. Sections of this document may be reproduced without the express permission of, but with acknowledgment to, IFPRI and WFP.
Composition of 8% of Vulnerable Group Development (VGD)
programme leakage: Bangladesh (weighed rations)
Undercoverage or non-
existence of cards
Wheat not received by UP
officials–weight of gunny
bags not deducted
Wheat not received by
UP officials–other
Wheat sold by UP
officials in market to
recover transportation
and handling costs
Pilferage and ad hoc
distribution to needy at
time of ration
distribution
2.5
1.0
0.5
3.0
1.0

A study of food aid leakage in Bangladesh

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A study of food aid leakage in Bangladesh

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Research Papers in Economics