Bangladesh Trade and Tariff Commission has proposed a total waiver of import taxes on rice to tame post-flood volatile market, as the staple prices show wayward upturns.
The proposal came Tuesday amid a notable rise in rice prices on the domestic market in last one month.
The traders also appear to be in a rush to bag windfall profits by raising rice prices despite having an all-time high production of the food-grain in the country.
Prices of both coarse, medium and-finer varieties of rice showed a hike by Tk 4.0- 6.0 a kg in the last two weeks and Tk 8.0-10 a kg since July 5, 2024, according to the TCB.
Coarse rice retailed at Tk 55-56, medium BRRI dhan 28 at Tk 66-68 and finer miniket, nazirshail (loose) at Tk 75-82 a kg on Tuesday.
The government this month cut rice-import duty to 25 per cent from 62.5 per cent for price control, but to no avail.
"Despite the reduction, rice importers were hardly interested in import as only 22 tonnes of high-value rice could be imported so far," said the BTTC.
The tariff commission in its observation says the demand for rice in the country is about 37 to 39 million tonnes while production is 40 million tonnes (BBS says it is 40.3 million tonnes in FY'24).
It says FOB (freight on board) price of rice per tonne in Thailand ranges from $ 545 m to $554 m and in India it is $450 m to $ 470 m dollars.
Considering 25-percent duties and the exchange rate at Tk 120 per dollar, per-kg rice at market level should be Tk 92-95 a kg.
The BTTC said then country lost above 0.84 million tonnes of rice following the two rounds of devastating floods that damaged crops in the 14 districts in southeast regions in August.
Following the condition and to keep the supply chain sound, BTTC proposed withdraw all import duties on rice to increase supply to the local market.
The proposal has been sent to the commerce, food, and finance ministries.
Shafiur Rahman, a rice importer at Birganj in Dinajpur, said traders could bring medium-quality rice if the government removed all duties now. "Coarse-rice import would not be beneficial as minimum cost would be Tk 58 a kg, much higher than local price," he added.
Value-chain expert Mozibal Hoque told the FE that the country produced an all-time-high 40.3 million tonnes of rice in the FY'24. Harvest in Boro and Aus seasons from May to August is nearly 23 million tonnes.
"Apart from the floods, many rice traders in Naogaon, Pabna, Joypurhat, Dinajpur, Rangpur, Jashore and elsewhere in the country are directly involved in distorting rice prices," he says about suspected market manipulation.
He feels rice market management is also important to maintain sound supply as imports have uncertainty.
The government should start strict market monitoring to keep prices of rice within people's reach, he says.
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