No worries over Bangladesh rice prices, says food minister

Rice prices are not worrying for Bangladeshis, Food Minister Qamrul Islam has claimed, saying it was within their purchasing power.

He made the comment while announcing the second cut in rice import duty in two months, from 10 percent to 2 percent on Wednesday.     

Bangladesh's main staple became costlier after huge crop losses in early floods this year. One kilogram of rice costs at least Tk 42.

"Rice prices are bound to fall because of import duty cuts. Rice isn't that costly, it is stable now. It is within everyone's buying capacity," the minister told reporters after a meeting of the committee on food planning and monitoring.

Prices of coarse rice range between Tk 42 and Tk 45 a kg, according to the committee. But market data shows coarse rice retails at up to Tk 50 a kg.

The food minister, despite his hopes of increasing supply, could not say for sure if the move to slash duty would actually take rice prices below Tk 40.

"I cannot answer all these questions you are asking. I’ve already said that people are not worried over the prices of rice. They are not feeling any crisis."

"Bangladesh is not in a position where rice prices can fall by Tk 10 or Tk 8. Prices are stable and within everyone's capacity."