TL;DR:
- Bangladesh will import 10.50 lakh tonnes of rice this fiscal year to stabilize rising domestic prices and ensure food reserves.
- By December, 5 lakh tonnes will be imported, with 2 lakh tonnes through the private sector and 3 lakh tonnes via government-to-government agreements.
- Despite removing import duties, traders have been slow to respond, with only 9,500 tonnes imported so far.
- Rice prices have surged by up to 14.81% over the past year, prompting government action to negotiate lower prices with neighboring countries.
The government of Bangladesh has announced plans to import 10.50 lakh tonnes of rice during the current fiscal year in an effort to stabilize domestic rice prices and ensure sufficient food reserves. This move comes as local rice prices continue to rise, despite the ongoing Aman harvesting season.
According to Food Secretary Md Masudul Hasan, the government aims to import half of this amount—5 lakh tonnes—by December. Of this, 2 lakh tonnes will be imported through the private sector, while 3 lakh tonnes will come through government-to-government (G2G) agreements with countries such as Vietnam and Myanmar. Additionally, tenders have been opened to import rice from India.
At a press briefing on November 14 at Khaddo Bhaban, Hasan explained that the government has issued licenses to 134 traders for importing 10.52 lakh tonnes of rice. However, despite these efforts, only 9,500 tonnes have been imported so far, with most of this amount already arriving in the country.
The decision to import comes amid rising rice prices in Bangladesh’s domestic market. Data from the Trading Corporation of Bangladesh (TCB) shows that coarse rice varieties like Swarna and China have increased by 4.90% over the past year, now selling for Tk52 to Tk55 per kilogram in Dhaka markets. Medium-grade rice such as Paijam has seen an even steeper rise of 14.81%, while finer varieties like Nazirshail have increased by 8.03%.
The price hikes are occurring despite the government’s removal of all duties and taxes on rice imports as of October 31, following recommendations from the Tariff Commission. The commission had highlighted the rising global prices and urged the National Board of Revenue (NBR) to eliminate the existing 62% import duties. In response, the Ministry of Finance’s Internal Resources Division issued a notification removing all duties on boiled and Atap rice.
However, traders have been slow to respond to these incentives. Food Adviser Ali Imam Majumder noted that global rice prices remain high, which has discouraged private-sector imports despite the removal of tariffs. The government is currently negotiating with neighboring countries such as Myanmar to lower their export prices.
The challenges facing Bangladesh’s rice market are compounded by recent natural disasters. Floods in regions like Feni and Noakhali have affected rice production, leading the Ministry of Agriculture to initially predict a shortfall of 10 lakh tonnes for this year. This estimate was later revised down to a deficit of 6-7 lakh tonnes.
Despite these setbacks, Majumder expressed optimism about future production levels. He stated that paddy yields in northern Bangladesh have been strong and that if this trend continues, the country may be able to offset some of the losses caused by floods.
In an effort to support farmers amid rising production costs, the government has increased its procurement price for paddy. Starting next Sunday, it will begin purchasing Aman paddy from northern regions at higher rates than previous years.
As of November 12, Bangladesh’s food grain stock stood at approximately 12.97 lakh tonnes, including over 8.54 lakh tonnes of rice and around 4.41 lakh tonnes of wheat. However, officials from the Directorate General of Food have expressed concerns that this stock is insufficient given current distribution demands through programs such as Open Market Sales (OMS) and Vulnerable Group Feeding (VGF).
The government’s net rice requirement for public distribution this fiscal year is estimated at 20.52 lakh tonnes. During the last Boro season, it collected just over 12 lakh tonnes of rice and nearly 3 lakh tonnes of paddy.
As Bangladesh continues its efforts to stabilize its food reserves and control rising prices, it remains unclear whether these measures will be enough to ease pressure on consumers in the coming months.
Source: TBS News
