Bangladesh has turned down a proposal to import 100,000 metric tons of rice from Myanmar due to the current situation in the neighboring nation.
The Cabinet Committee on Public Purchase, the highest approval body of the government, rejected the proposal placed by the Directorate General of Food to make the bulk import of Sunned rice under a government to government (G-to-G) agreement.
"We've turned down the proposal considering the current situation in Myanmar although there was an agreement signed between the two countries," Finance Minister AHM Mustafa Kamal, head of the Cabinet body, told reporters following the meeting of the committee on Wednesday.
He defended the government's decision and said that such purchase is made through banking arrangement by opening letter of credit.
"Until a shipment reaches the country, the bank will not make the payment to the buyer. So, there will be no chance for any loss by the government," he added.
Myanmar army took control of the country toppling the democratically elected government recently which created a volatile situation in the Bangladesh's East Asian neighbor.
However, the Cabinet body approved some other proposals including wheat import from Russia and Argentina.
