Bangladesh slashes import duty on rice to control prices

The government has decided to lower the duty on the import of rice to 25 percent, down from 62.5 percent, to allow private traders to ship in the commodity in a bid to offset the soaring prices of the staple in the local market.

Food Minister Sadhan Chandra Majumdar announced the decision in an online media briefing on Sunday.

"In order to ensure that consumers and farmers don't suffer from a price hike, we have decided to allow the import of the commodity in a regulated manner," he said.

Explaining how the level of imports will be regulated, the minister added, "Only legitimate importers can apply to the ministry for approval by Jan 10. The ministry will then decide who will be allowed to import and the amount they can bring. After issuing the approval, the ministry will keep track of the amount of rice being imported.”

The price of thin grains currently ranges from Tk 3,200 to Tk 3,400 per sack of 50 kg in the market, which is the highest in recent years.

The retail price of fine varieties was Tk 64 to Tk 66 a kg while the price of medium and coarse grains has also gone up.

Expressing dissatisfaction with the situation in the rice market, Agriculture Minister Abdur Razzak said, "I don't understand why the price of rice is so high. Even a hike of Tk 1 to 2 is a lot. Coarse rice worth Tk 32-33 is now being sold at Tk 44. What are the reasons for this? ”

According to the Bangladesh Rice Research Institute (BRI), four consecutive floods have taken a heavy toll on the country's paddy production, which could reduce the yields by 1.5 million metric tons.

Nevertheless, with the amount of rice that is set to be produced, officials expect a surplus of at least 3 million tons of rice after meeting the demand until June.