Bangladesh to procure Boro paddy at higher price, parboiled rice at lower rate

Government warehouses hold up to 1.8 million tonnes of rice against an annual demand of about 42.4 million tonnes

The government has set a target of procuring 500,000 tonnes of Boro paddy and 1.3 million tonnes of parboiled rice next month.

The decision came in a meeting of the Food Planning and Procurement Committee with Home Minister Salahuddin Ahmed at the Secretariat on Wednesday, according to a media statement.

The Boro paddy price will be Tk 2 higher per kg and each kg of parboiled rice will get cheaper by Tk 1 compared to the rates in the last Aman season, it read.

The procurement of paddy and wheat will start on May 3, followed by parboiled rice on May 15. The procurement process will continue till Aug 31.

As per the revised prices, Boro paddy will cost Tk 36 per kg, parboiled rice Tk 49; Atap (non-parboiled) rice Tk 48 and wheat at Tk 36.

During the last Aman season in November, the government procured paddy at Tk 34 per kg, parboiled rice at Tk50 and Atap rice Tk 49.

This season, the government will collect 500,000 tonnes of paddy, 120,000 tonnes of parboiled rice, 100,000 tonnes of Atap rice and 50,000 tonnes of wheat.

At a press briefing at the meeting, the home minister said there are up to 1.8 million tonnes of rice in government warehouses, whereas the mandatory storage is 1.3 million tonnes at the government level.

Stating that the country’s annual demand for rice hovers about 42.4 million tonnes, Salahuddin said he expects a bountiful Boro yield driven by "favourable weather", helping meet the national demand.

Rejecting any need to import rice given the domestic production and stock, he hinted at importing wheat because its production is lower than expected.

The annual demand for wheat is about 8 million tonnes, and to ensure the supplies, the government will import 800,000 tonnes through G-2-G and open tender methods.

Bangladesh has already signed a memorandum of understanding with the US to import about 700,000 tonnes of wheat, the minister said, adding that the rest of the demand will be fulfilled by the private sector importers.

The government has kept an eye on the demand for Atap rice in the Chittagong, Sylhet and Khulna regions, he said.

“If the collection target is not met in a specific region, the supply will be ensured from other regions.”

Salahuddin said the government is on alert to ensure there is no food shortage anywhere in the country.