Since the liberation of Bangladesh, the government of Bangladesh introduced a series of policy measures in agriculture and food sectors to encourage pro-market distribution of seeds, fertilizers, pesticides and diesel fuel for irrigation. The dominant feature of the policy reform had been the government’s liberalisation of the fertilizer and irrigation equipment markets. These reforms can be reasonably credited with the success in rice production during the 1984-1992 period. Reforms in the foodgrains market in the 1990s reduced the public sector involvement in these markets. Public procurement to stabilise prices and provide production incentives to farmers suffered from certain inefficiencies, although the overall impact of public procurement and price support programmes could be considered positive. The policy reforms were surprisingly smooth partly reflecting the absence of organised lobby by peasants and partly the fact that the policy reforms have benefitted, by and large, all groups of farmers.