The government is likely to withdraw the zero tariff facility on import of rice with a view to protecting the farmers from losses due to the downward trend of rice and paddy prices, officials have said.
The Bangladesh Tariff Commission (BTC) recommended withdrawal of the duty in a study carried out by it on an instruction of the government.
Prices of rice and paddy have declined with the Boro paddy arriving in the markets across the country. As a result, it has become very difficult for the farmers to make up for the production cost of paddy.
The country's farmers produced bumper paddy in the recent years. The prices were falling and the situation was being monitored, senior secretary of the Ministry of Commerce Hedayetullah Al Mamoon told the FE on Friday. "The BTC has conducted a study on the zero duty facility on import of rice. We are sincerely reviewing the proposals by the BTC to protect the country's farmers," he said.The government had earlier imposed the zero duty facility on import of rice. But paddy prices have fallen significantly in the current Boro season due to the facility enjoyed by the importers, according to sources.
The downward trend of prices worried the government, they mentioned.
Under the circumstances, the government had asked the BTC to put forth suggestions on the issue to protect the country's farmers from suffering losses, sources said.
The BTC has recommended withdrawal of the zero duty facility on import of rice from different countries. At the same time, the state-run commission also recommended imposition of duty on import of rice and continue the same for next three months.
The BTC submitted the recommendations to the ministry of commerce on May 6 last.
The BTC prepared the recommendation paper on semi-milled or wholly-milled rice, whether or not polished or glazed and broken rice under the HS codes 1006.30.00 and 1006.40.00.
The importers imported rice from India, Australia, Myanmar, Japan, Korea, Singapore, Pakistan and USA over the last three years. Of the imported rice, about 57 per cent, 83 per cent and 92 per cent semi-milled rice was imported from India in the fiscal years (FYs) 2011-12, 2012-13 and 2013-14 respectively, according to the BTC.
Prices of per kg imported rice were Tk 33.05, Tk 45.26 and Tk 32.60 in the FYs mentioned above. Presently, import prices of rice in India are Tk 25 to 30 per kg thanks to Indian government's stimulus on export of rice.
According to the ministry of agriculture, production cost for per kg paddy has been estimated at Tk 20 this Boro season whereas farmers are selling it at Tk 11.25 to Tk 12.0 per kg.
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 FY against demand for 31.0 million tonnes.
The latest BBS data also showed that production of Aman and Aus was record 13.2 million and 2.328 million tonnes respectively in the current fiscal year.     Â
   rezamumu@gmail.com