13,968 Tonnes of Rice Imported, Prices Still High

In response to the persistent price surge, the government has extended the deadline for rice imports from India. According to a press release from the Ministry of Food issued on February 5, importers now have until March 15 to bring in additional rice. This extension covers the opening of letters of credit (LCs) for non-Basmati parboiled and Atap rice.

However, importers claim that the high prices in India are preventing them from selling imported rice at lower prices in Bangladesh. Given the increasing cost of rice production in India, they do not expect any immediate price reductions in the domestic market.

On the other hand, consumers are frustrated by the situation. They argue that there is no shortage of domestic rice, especially following the recent harvest of Aman paddy. Despite the ample stock, they are still being forced to pay high prices, which is putting a strain on their finances.

Many consumers suspect that a syndicate is manipulating the market, taking advantage of ineffective price monitoring. Tuhin Hossain, a local resident, voiced his concerns: "Every year, when the new paddy is harvested, the price of rice drops significantly. This year, however, it’s a different story. There must be an investigation into the role of a market syndicate."

Traders also acknowledge the impact on low-income families, as rising rice prices contribute to the increasing cost of living. Along with rice, nearly all essential commodities have seen price hikes, further squeezing household budgets.

The government had initially allowed 392,000 tonnes of rice to be imported between November 17 and December 22, 2024. However, import volumes fell short of expectations, leading to an extension of the deadline until February 15. Yet, with prices still high, the government has once again extended the import deadline to March 15 in hopes of achieving a price drop.

Rice mill owners and paddy traders argue that high rice prices are primarily due to the elevated cost of paddy this season. Rashid Chowdhury, owner of Choudhury Rice Mill in Navaron, explained that wholesale prices for coarse rice are now Tk 51 per kg, while Swarna rice costs Tk 53 per kg. He predicts a price reduction once newly harvested rice enters the market, but warns that lower production due to excessive rainfall may still necessitate continued imports.

A visit to several rice mills in Benapole and Sharsha upazila revealed that mill owners are struggling to secure enough paddy. Many farmers are holding onto their harvest, hoping to sell it at higher prices in the future. As a result, mill owners are forced to source paddy from other districts, which increases processing costs. At current rates, the cost of producing coarse rice is over Tk 50 per kg, while finer varieties are priced around Tk 63 per kg.

Current retail prices in the market are varied, with coarse rice selling for Tk 52 per kg, Hira rice at Tk 48, Unapanchash at Tk 56, Atash at Tk 58-60, Jirashail at Tk 76, Miniket at Tk 68-70, Indian Miniket at Tk 72-74, Basmati at Tk 90-92, Pajam at Tk 56-57, Swarna at Tk 52-53, and Nazirshail at Tk 84-85 per kg.

According to Abu Taher, a revenue officer at Benapole Checkpost, 13,968 tonnes of rice were imported through Benapole between November 17 and February 13. He added that 92 companies were granted permission to import a total of 392,000 tonnes of parboiled rice and 119,000 tonnes of Atap rice nationwide.

While many importers missed the original deadlines, leading to several extensions, the government has now mandated that all imported rice must be marketed within 25 days. This deadline was later extended to February 15, but slow imports have led to the current one-month extension until March 15.

Benapole Port Director Shamim Hossain confirmed, "In the last three months, 13,968 tonnes of rice were imported through Benapole with duty-free facilities. We are ensuring that these consignments are quickly released as soon as they arrive at the port to facilitate smooth distribution."

The extended import period aims to stabilize rice prices and ensure an adequate supply in the domestic market, though the impact of this move remains to be seen.