Rice imports in the private sector fell in the last one month amid the government's move to withdraw the zero duty facility on it. The government move alongside the price fall in the local market led the local importers to adopt a cautious stance.
But the decline was yet to leave any positive impact on local prices as paddy was still trading at prices 20-25 per cent below the production cost in the peak harvest season, according to market insiders.
Private importers brought in 1.276 million (12.76 lakh) tonnes of rice through the legal channel until April 07 last in the fiscal year (FY) 2014-15. It accounted for 4,600 tonnes per day on an average, an official at the Directorate General of Food (DGoF) said.
"But in the last one month (April 08 to May 07), imports declined to just 1,100 tonnes per day as importers brought in 34,000 tonnes during the period," he added. He said the downward trend of paddy and rice prices in the domestic market and the government's move to slap duty on rice were behind the decline in imports.
Finance Minister AMA Muhith at a function on Sunday said the government decided to impose 10 per cent duty on import of rice, in place of the zero tariff earlier offered.
Earlier, the zero tariff on rice import, coupled with the lower prices in Indian markets, encouraged the private importers to go for import on a wide scale in the current fiscal.
Md Sarwar Alam Kajol, an importer, told the FE that businesses almost stopped opening new letters of credit (L/Cs) following the fall in local rice prices.
He said many traders had been maintaining a cautious stance since the first week of April on speculations that the government might impose duty on rice imports.
He also said the prices of rice starting increasing in India over a projection that overall rice output might decline there.
Rice trader at Nilphamari Sadar Md Hazrat Ali (Sajib) told the FE that mill gate prices of the local Swarna variety were Tk 21.5-22.0 per kg while the newly milled Brridhan-28 was being sold at Tk 24.0-24.5 per kg. He also said the prices of Swarna were Tk 25.0-26.0 a month back.
Md Anisuzzaman Fakir, a farmer-trader at Pakerhat in Dinajpur said the Brridhan-28 variety of paddy was being sold at Tk 550-580 per maund and Miniket variety Tk 650-680 per maund on Saturday. He said the prices increased by Tk 20-40 per maund in the last seven days but still were below the production cost.
He said Brridhan-28 was selling at prices lower by Tk 150-200 than their production cost of Tk740-750 per maund. And the Miniket variety was sold at prices lower by Tk 100-150 than the production cost of Tk 800 per maund, he said. Economist Prof Gazi M Jalil told the FE that the government took much time to take the decision on restricting rice import. "But the farmers who are yet to harvest crops might get benefit from the move," he said.
He said the government should enact a time-befitting rice import and export policy to protect the interests of the country's people. He said: "Government should consider rice always a strategic crop which could help it in framing a farmers-friendly import policy."
According to the Department of Agriculture Extension (DAE), Boro has been cultivated on 4.84 million hectares of land this year and 48 per cent of the crop was harvested until Sunday evening.
Secretary of Bangladesh Auto Major Husking Mills Owners Association KM Layek Ali said 60 per cent of the millers had been idle for the unnecessary import and political turbulence over the last few months.
He said: "But many millers have started buying paddy after getting assurance from the government about restricting the rice import." He urged the government to impose 25 to 50 per cent duty on Indian rice based on varieties.
According to the Bangladesh Bureau of Statistics (BBS) and the Directorate General of Food (DGoF), the country produced 34.465 million tonnes of rice in the last financial year against the demand for 31.0 million tonnes.
The BBS latest data also shows the Aman and Aus production was 13.2 million and 2.328 million tonnes respectively in the current financial year.
Source:thefinancialexpress-bd.com
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