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Govt to allow 15 lakh tonnes of rice imports

Rokon Mahmud
27 Jun 2022 00:00:00 | Update: 27 Jun 2022 01:05:40
Govt to allow 15 lakh tonnes of rice imports

The government has decided once again to allow private rice imports to control the rising prices in the domestic market and reinforce food security.

In the first phase, permission will be given to import 10 lakh tonnes of rice. The amount will be increased to 14-15 lakh tonnes in the later phases based on demand, according to a senior Food Ministry official.

The ministry will issue a circular in this regard in a day or two and start accepting applications from importers, said the official on Sunday.

Earlier, the ministry had taken approval from the Prime Minister’s Office to import rice.

Meanwhile, the overall tax on rice imports has dropped from 62.5 per cent to 25 per cent after the National Board of Revenue lifted the import duty on Thursday.

Although the overall paddy growth was good this time, rice prices started going up at the peak of Boro season due to many reasons, including sudden floods in the Haor regions, waterlogging in the farmland following heavy rains, inability to store paddy properly after threshing, competition of corporate houses in the rice market, and market manipulation by hoarders.

Coupled with these, the rising concern about food security after the recent floods in various parts of the country, including Sylhet, Sunamganj and Kurigram, has led the government to decide to import rice.

Talking to The Business Post, Food Secretary Md Ismiel Hossain confirmed the government’s decision to import rice like last year. “The circular will be issued either Monday or Tuesday.

“However, the number of imports will depend on the market demand. There are plans to approve the import of 14-15 lakh tonnes of rice, which is close to what was approved last year. For now, the import of 10 lakh tonnes has been approved. It will increase in phases.”

Over the past two weeks, the retail price of various types of rice, including Nazirshail, Miniket, BR 28 and Paijam, has gone up by up to Tk 5 per kg in different markets, including those in Dhaka city.

It now costs over Tk 72 per kg to buy normal quality Nazirshail rice, Tk 64-70 for Miniket, and Tk 47-50 for a kg of coarse rice.

According to the Food Ministry, the international market price of rice on Sunday ranged from Tk 33.46 to Tk 41.26 per kg. The price goes up to Tk 42-51 after a 25 per cent tax is added.

Last year, 428 companies were permitted to import 17.2 lakh tonnes of rice at a reduced duty. They were given until October 31 to import rice. However, only 8 lakh tonnes arrived as many entities did not import rice even after receiving the approval.

Every year, 55% of the country’s rice demand is met by Boro rice varieties. According to the Agriculture Ministry, 2.07 crore tonnes of paddy were produced in the Boro season last year, which was higher than any previous year.

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