Rice import deadline extended till Oct 30

The government has extended the deadline for private rice importers – who hold the permit to import the staple and have already opened a letter of credit (LC) – till October 30.

A food ministry notification said on Friday the deadline would not be extended further.

It also said the importers failing to meet the deadline would have their import permits cancelled.

In early August, the government decided to import rice through private importers.

On August 6, the food ministry in a letter asked the National Board of Revenue (NBR) to reduce import duty on rice.

Responding to the letter, the NBR on August 12 cut rice import duty from 62.5 per cent to 25 per cent, saying the facility would expire on October 30.

Two days later, the food ministry sought applications from private importers and started issuing permits on August 20.

The food ministry said 415 private importers had been issued permits to bring in 16.93 lakh tonnes of rice within September 25 based on six conditions.

The importers also need a clearance from the quarantine department of the Department of Agricultural Extension to import rice.

Data from the department shows it had issued clearances for bringing in around 12 lakh tonnes of rice.

The food ministry said the importers had opened LCs to import 7.8 lakh tonnes of rice, and only 1.7 lakh tonnes had been imported till October 13.

The importers, mostly millers, find the decision to import rice a mere show-off as the government has only issued import permits but offered no facility for the process.

“Moreover, no bank is interested in opening funded LCs,” said Abdur Rashid, president of Bangladesh Auto, Major and Husking Rice Mill Owners Association.

“A huge amount of money is required to import rice, but businessmen do not always keep this much cash,” he said.

But the food ministry said the importers could not import rice due to high prices in the international market.

“India increased rice prices when we decided to import. That is why importers failed to import. If the NBR reduces import duty further, the importers may be able to import,” Food Secretary Dr Mosammat Nazmanara Khanum told The Business Post.