Zero tariffs on rice imports, yet traders show little interest

Staff Reporter :

Food Adviser Ali Imam Majumdar expressed confidence on Thursday that rice prices would soon decrease as the new Aman rice harvest reaches the market.

“Harvesting of Aman paddy has already begun in the northern region, and this year we have achieved a bumper yield. Our Aman collection drive will commence this Sunday,” he announced.

The Adviser made these remarks to journalists following a meeting at the Directorate General of Food in the city, attended by senior food directorate officials, including regional directors.

The government’s Aman procurement drive, starting Sunday, aims to collect 1 million metric tons of rice and paddy, with prices increasing by Tk 3 per kg this year.

The Adviser further noted that additional rice imports are expected, with letters of credit already issued for 150,000 metric tons.

Majumdar highlighted that rice prices have remained stable over the past week, with price increases implemented to ensure fair returns for farmers amidst rising production costs.

According to Food Director General Abdul Khaleque, the collection target for this Aman season includes 550,000 metric tons of rice, 350,000 metric tons of paddy, and 100,000 metric tons of atap rice.

The price per kilogram of rice has been raised to Tk 47 from Tk 44, while paddy prices have increased from Tk 30 to Tk 33 and atap rice to Tk 46 from Tk 42.

Responding to questions, the Food Adviser mentioned that Bangladesh is close to rice self-sufficiency, though imports may be necessary during shortfalls.

This year, the Agricultural Ministry predicts a deficit of 600,000-700,000 metric tons, leading to zero tariffs on rice imports.

Despite permits for importing 1.052 million metric tons, traders have shown limited interest, with letters of credit opened for only 9,500 metric tons, most of which have already arrived, said Food Ministry Secretary Md Masudul Hasan.

This comes after the government removed the 62.5% import duty on rice following a recommendation from the Tariff Commission to alleviate the impact of rising global prices.

However, despite the import permits, traders are reluctant to import rice, according to ministry sources.