High rice market for two months. Fine, medium, coarse – the price of all types of rice has increased by Tk 5 to Tk 6 per kg. In such a situation, the food ministry has written to the National Board of Revenue (NBR) to reduce the duty on import of rice. In the letter given last September 30, it is proposed to reduce the existing customs duty from 62.50 percent to 5 percent.
Traders say that the price of rice started increasing during the students’ movement in the middle of last July. That rate has not decreased. At present, medium quality BR-28 and Payjam varieties of rice are being sold at the retail price of Tk 58 to Tk 64 per kg. Coarse rice (Gutiswarna and China Iri) 50 to 55 taka per kg. And small rice (miniket) is being sold at 70 to 75 taka per kg. Two months ago, coarse rice was sold at Tk 48 to Tk 50, medium Tk 54 to Tk 58 and thin rice at Tk 68 to Tk 70 per kg. According to the government agency TCB, the price of all types of rice has increased by an average of 8 percent in a year.
In this situation, mill owners and importers are considering the proposal to reduce customs duty as positive. They say it will increase imports. The price of rice in the market will also decrease. The proposal is said to be under review at the NBR.
In a letter given to NBR, the Ministry of Food has said that the target of collection of 5 lakh tons of paddy and 14 lakh 70 thousand tons of rice has been set in the current Boro season to build up food security stock and to give incentives to farmers. Till August 31, 2 lakh 96 thousand 970 tons of paddy and 12 lakh 55 thousand 497 tons of rice
have been collected. At present, 12 lakh 64 thousand 740 tons of rice and 4 lakh 63 thousand 928 tons of wheat, including 17 lakh 54 thousand 199 tons of food grains are stored in the government storage.
The Ministry of Food says that there has been severe flooding in 14 districts of the country recently. As a result, there was damage to Aush, Aman seedlings and Aman seedbeds. This may increase the price of rice even after the increase in demand. Moreover, the price of the food grain has increased due to various reasons, including the Indian government’s ban on wheat exports and the Russia-Ukraine war.
Those concerned think that it is necessary to increase the stock to keep the rice market stable in the country. Therefore, import of rice may be required at the private level. In the meantime, the chief adviser’s office has approved the import of 5 lakh tonnes of rice at the government level. The Ministry of Food said in the letter, currently the price of rice in the world market is higher than the domestic market. Therefore, to stabilize the market, the existing duty on rice import (customs duty 25 percent, regulatory duty 25, advance income tax 5, advance tax 5, insurance 1, landing charge 1 and DF VAT 0.5) has been reduced from 62.50 percent to only regulatory duty 5. A percentage is requested. That is, the regulatory duty has been proposed to be withdrawn at 5 percent and all other duties.
Meanwhile, India recently reduced the tariff on rice exports from 20 percent to 10 percent. India’s 10 percent duty on rice export and Bangladesh’s 5 percent duty on import will be added to this, and rice will have to be imported with a total duty of 15 percent. The Ministry of Food believes that traders will be encouraged by this. Hence ‘Non-Basmati’ Parboiled Rice and ‘Non-Scented’ Atap Rice at both Government and Private level.
NBR was requested to reduce the duty on imports.
HR Khan Pathan Saki, General Secretary of Bangladesh Auto-Major and Husking Mill Owners Association told Samakal, ‘The rice crop has been disrupted due to floods. The market is a bit extra. In this situation, the initiative to reduce customs duty is definitely a good decision.
An official of NBR said that the proposal to reduce customs duty on rice import is under review.