Rice price hike belies high yield
Traders and importers attributed the price hilke to the reintroduction of tariff on rice imports
ANISUR RAHMAN KHAN
Despite adequate production and subsequent stock in silos, rice and paddy prices have gone up over the past few days. The price hike belies the space constraints in government silos, having a capacity of about 21 lakh metric tonnes, as they can safely stock a maximum of 18 lakh tonnes and already there is a stock of 12 lakh tonnes. Food department officials said four lakh tonnes of paddy and rice have already been procured as part of a 10-lakh-tonne target. The rice traders and importers tthat the prices of rice and paddy are rising due to reintroduction of tariff on rice imports in the proposed national budget for the coming fiscal year.
The price of paddy has gone up by approximately Tk 150 per maund while the price of rice has spurted by Tk 12 per kg in different kitchen markets.
According to Md Arifur Rahman, director-general of the Food Directorate, there are sufficient food reserves in different government silos across the country. He added that there would be no shortage of domestic rice for five to six months in the country.
There is no designated silo to store rice, he further said, the storing capacity of rice, paddy and wheat is only 21 lakh tonnes in government godowns and silos across the country. We are constructing five silos funded by the World Bank to store rice only.
He further said that all the godowns in North Bengal are now fully packed with food grains.
Its true that the price of rice has increased by Tk 12 per kg. But this is temporary. The tariffs will only have a little impact on imports, Md Arifur Rahman told The Independent. The government currently has over 12 lakh metric tonnes in food reserves, he said, adding, Weve a target of procuring 10 lakh tonnes of Boro rice this season. We have already procured over four lakh tonnes of Boro rice from the local markets.
Rahman further said there is no shortage of domestic rice. Also, there is not even adequate space to store rice in different government godowns.
He, however, said if the price rises, the government will introduce an Open Market Sale for a targeted group to tame the market. Food reserves are quite good this year after the import of four million tonnes of rice last year, he said. I dont see any major challenge in the coming five to six months and theres no real need for imports, Rahman added.
Meanwhile, paddy and rice traders have said the impact of the tariffs is yet to be felt in the rice market because of the relatively low trade since the Eid holidays have just ended. The impact will be felt soon after the resumption of full trading, one of them added.
Finance minister AMA Muhith had announced the reintroduction of the 28 per cent tariff on rice imports during his budget speech for the 201819 fiscal year. The government had withdrawn the tariff on rice imports following a poor harvest and damage by floods in 2017.
However, in his budget speech, Muhith said the tariff was aimed at protecting farmers so that they could get a fair price.
We are now selling a 50-kg sack of fine quality Nazirshail at Tk 3,100, which was sold for Tk 3,050 last week, Chitta Ranjan Saha, manager of Bismillah Rice Trading, a wholesaler, told this correspondent earlier this week. The price of rice has increased by Tk 12 per kg this week compared to last week, he said, adding that it might become more expensive.
The price of rice is rising. The reintroduction of tariff on rice imports will impact the price of rice. We apprehend the price will further rise soon, Md Anwarul Islam of Anwar Rice Trading of Mohammad Krishi Market said.
KM Layek Ali, the general secretary of the Bangladesh Auto Major and Husking Mill Owners Association, said though the governments aim is to ensure that farmers get fair prices for paddy, the price of rice would surely increase soon. He further said the reintroduction of tariff is preventing rice imports, and the price of paddy has already increased by Tk. 100150 per maund across the country.
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