Slow pace in rice imports despite duty waivers

Despite the government's removal of all import duties on rice, traders remain hesitant to import, adding to the strain on the market and intensifying consumer frustration over high rice prices. 

Although the government has approved 1.5 million tonnes of rice imports, Letters of Credit (LCs) have been opened for only 9,500 tonnes, according to Food Secretary Md Masudul Hasan.

This update was shared at a press conference at the Food Ministry on Thursday (November 14), where Aman procurement efforts were discussed. 

Food Adviser Ali Imam Majumdar also addressed the issue.

Masudul Hasan noted that while 134 traders have been granted import permits, most of the rice approved under these LCs has already entered the country. 

Ali Imam added that elevated international rice prices have prompted the government to negotiate with neighboring countries, including Myanmar, seeking price reductions to ease domestic costs.

The press conference revealed that on October 29, the Tariff Commission recommended lifting all rice import duties to counter high international prices, a move implemented by the Ministry of Finance on October 31. 

The Food Ministry subsequently set a deadline of November 14 for private importers to bring in rice. Despite the deadline, however, few traders have proceeded with imports. 

Ministry officials said that as the Aman rice harvest is underway and new stocks will soon enter the market, traders anticipate a potential dip in prices, making imports less appealing.

Ali Imam Majumdar explained that floods in regions like Feni and Noakhali have impacted production, with the Ministry of Agriculture estimating losses of 6-7 million tonnes. 

In response, the government initiated rice imports at both public and private levels, reducing duties to stabilise supplies. Fortunately, the northern region is reporting a bumper paddy harvest, which could help offset shortages.

To support farmers amid rising production costs, the procurement price of paddy has been increased. Starting Sunday, paddy purchases will commence in the northern region. 

While food stocks remain tight, the government is rapidly purchasing Aman paddy and rice to bolster reserves, while also expediting imports. 

Currently, government food reserves stand at 1.288 million tonnes.

Addressing consumer concerns, the Food Adviser acknowledged the pressure high rice prices place on middle-income families, especially after recent floods also affected winter vegetable supplies.