Diesel smuggling poses threat to Boro production

A large quantity of diesel is being smuggled out to neighbouring India and Myanmar, posing a severe threat to the Boro production that meet up nearly 80 per cent of the country's rice demand. Besides a group of dishonest businessmen, some influential quarters including people's representatives at different levels are also involved in smuggling of diesel, according to an intelligence report. They are smuggling diesel to India and Myanmar through various points of Satkhira, Kushtia, Chuadanga, Panchagarh, Cox's Bazaar and Bandarban, National Security Intelligence (NSI) informed Prime Minister's Office and Ministry of Agriculture last week, said sources. Talking to the FE, Agriculture Secretary C Q K Mustaq Ahmed Monday, however, ruled out any possibility of diesel shortage in the country in this Boro season. "Earlier, there was some shortage in supply of diesel, but we have overcome it," he said. "We have arranged adequate import of diesel to meet the demand for irrigation this season. A huge quantity of diesel is now in the pipeline for the coming months," Mr Ahmed said. He also ruled out the allegation of diesel smuggling and said the government is monitoring it. Meanwhile, NSI identified the culprits involved in smuggling and also sent their list to the authorities concerned for immediate action to avert any possibility of agitation among farmers for shortage of diesel. Sources said diesel-run pumps cover 60 per cent of Boro irrigation. Nearly 4.5 million farmers in northern districts are involved in Boro cultivation. Among them, 1.6 million are dependent on electricity-run pumps and 2.9 million on diesel-run pumps for irrigation. The yearly demand of diesel in the country is around 3.82 million tonnes, most of which are being used during January-April period for Boro cultivation. The report mentioned that diesel is being sold at prices between Tk 44 and Tk 46 per litre in Bangladesh, while in India and Myanmar at between Tk 65 and Tk 68, marking a difference of nearly Tk 21 to Tk 23 per litre. Under such circumstances, some people are smuggling out diesel to the neighbouring countries to make some windfall profit. The smuggling operation indicate the possibility of a diesel shortage in the country unless it is stopped. Besides, the demand for diesel will continue to rise significantly in the country, if the smuggling goes on unabated, resulting in pressure on foreign currency reserve, said the report.