Govt waives tariff on rice to rein in market volatility

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Noman Mosharef :

Despite undertaking a lot of measures, the interim government is striving hard to control the daily essentials market as prices of the most items are soaring putting the limited income group people into a severe hardship.

Moreover, the most common staple in Bengali kitchen, onion price is hiking while the price of rice is following the trend.

In Dhaka, the price of locally grown onions has surged by nearly Tk 25 per kilogram within the last two weeks.

On Friday (1 November), a visit to major markets like Karwan Bazar, Kalyanpur, and Hatirpool revealed that high-quality local onions were being sold for Tk155 to Tk160 per kilogram, compared to Tk130-135 per kilogram two weeks ago. Meanwhile, second-grade onions were available at around Tk135 per kilogram.

Traders attribute this price hike to the seasonal depletion of local onion stocks.
“Every year around this time, local onion stocks begin to run low, leading to higher prices. To meet the demand, we rely on imported onions,” said Mohammad Abdul Majed, a wholesale onion seller at Shyambazar.

Majed further said second-grade local onions are currently being sold wholesale at Tk120-125 per kilogram, marking a Tk20 increase over the past two weeks.

He also noted the scarcity of first-grade local onions, saying, “Due to the shortage of local onions, prices rise every year around this time. However, there’s no shortage in the market now due to imports. Indian and Pakistani onions are being sold at Tk90-92 per kilogram in the wholesale market.”

“Imported onion prices haven’t increased much in the wholesale market. Local ‘murikata’ onions will start arriving in a few days, which should stabilise the market. Until then, imports will continue to be necessary,” he added.

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Meanwhile, Anwar Hossain, an onion seller in Kallyanpur Notun Bazar area, said, the price of large Indian onion is Tk130 per kg, while its smaller variant is Tk120 per kg.

In response to the recent price surge, the Bangladesh Trade and Tariff Commission has recommended a temporary withdrawal of the 5% import tax on onions to control prices.

In a letter to the National Board of Revenue (NBR) on Thursday (31 October), the commission proposed lifting the tax to ease prices in the local market.

Previously, the NBR removed the regulatory tax on onion imports in September, a measure set to remain in effect until the end of November.

Furthermore, to bolster food security and ensure that rice remains accessible to the general population, the National Board of Revenue (NBR) has announced withdrawal of import duty and regulatory duty on rice.

The announcement was made from the NBR’s headquarters. This initiative aims to increase the supply of rice in the market, thereby keeping prices within an affordable range for consumers.

Previously, the import duty on rice was set at 15 per cent, alongside a regulatory duty of 5 per cent. With the new notification, these duties have been eliminated, leaving only an advance income tax of 2 per cet. This strategic reduction is expected to lower the import price of rice by approximately Tk 9.60 per kg.

The NBR expressed optimism that this policy change will enhance the availability of rice in the market, ultimately benefiting consumers and helping to stabilize prices for the common buyer. This proactive measure reflects the government’s commitment to ensuring food security in Bangladesh.

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