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The food ministry has given the go-ahead for 415 private importers to bring in 16.93 lakh tonnes of rice attaching six conditions in a bid to rein in the price of the staple in domestic market.
The ministry started giving permission for rice import from August 21, and yesterday (Monday) was the last day for it.
The imported rice will enter the country within September 25 and help cut the price in the domestic market, said a senior official in the food ministry.
At present, the price of per tonne of rice ranges between $ 350 and $ 386 in the international market and after the import its price will hover around Tk 32.5 to Tk 38.15 per kilogramme with all customs duty and tax included, according to the food ministry.
The ministry officials said all kinds of imported rice should not be sold at above Tk 40.
Though the Ministry of Food claimed that the prices of rice fell in the retail and wholesale market, The Business Post investigation on Monday did not find the truth of it.
Importers demand Tk 43.50 to Tk 44 for per kilogramme of coarse rice variety and Tk 51 to Tk 52 for finer variety, said a wholesale rice trader.
The rice traders said most allocated importers are rice millers and they are trying to sell their imported rice at the same price as that in the domestic market.
“After the allocation notification, there is no impact on the wholesale market. I think if the government does not fix imported rice price, there is hardly any chance for the price to come down,” said Sayed Monirul Islam Montu, secretary, Mohammadpur Agriculture Market Traders Association.
The six rice-import conditions attached by the government are: the selected traders have to import rice within September 25. Importers have to open the Letter of Credit (LC) within 15 days after the issuance of notification. If the importers fail to open their LCs within the stipulated time, their IPs will be canceled. All documents must be sent to the food ministry through email ([email protected]). The importers cannot get an import permit (IP) over the allocation and imprint names of their companies on the rice sacks. They have to market the imported rice in plastic sacks.
In early August, the food ministry decided to import 10 lakh tonnes of rice through private importers. On August 6, the ministry sent a letter to the National Board of Revenue (NBR) to reduce the duty on rice import.
In a gazette notification on August 12, the NBR fixed the new import duty at 25 per cent from 62.5 per cent. It will remain effective till October 30, 2021.
Now importers have to pay 5 per cent Advance Tax and 5 per cent Advance Income Tax in addition to a 15 per cent customs duty, according to the notification.
On August 14, the food ministry asked importers to submit applications for rice import permission. Applications could be filed till August 25.
Bangladesh has imported 2.47 lakh tonnes of rice since July. It has imported around 16 lakh tonnes since January this year.
The Department of Agricultural Extension claimed that the country produced 2.8-crore tonnes of Boro rice this season which was 1.96-crore tonnes in previous season.
Despite a record production and regular imports, rice prices remain remarkably high in the local market.
The finer variety was selling for Tk 60 to Tk 65 a kg in the capital while BRRI-28 Tk 52 to Tk 55.
The price of coarse rice ranges from Tk 47 to Tk 48 and Nazirshail Tk 68 to Tk 70.
