Approval for another 0.125m tonnes of rice import

Food ministry on Tuesday permitted 50 private companies to import an estimated 0.125-million tonnes of both parboiled and white rice, according to a circular issued by the ministry.
Last month, the government permitted 30 importers to bring 83,000 tonnes of the staple.
As per the latest notification, the importers have been authorised to import 91,000 tonnes of parboiled rice and 33,000 tonnes of white (scented) rice.
It is imperative that the imported rice be swiftly introduced into the market by May 15 to address the ongoing crisis in the rice market.
The circular also stipulates that institutions are allowed to issue import permits (IPs) in addition to the allocated quotas.
Additionally, the ministry has imposed a ban on the repackaging of imported rice under the guise of proprietary institutions.
Rice sacks originating from abroad must be sold intact.
It also mentioned for the requirement for comprehensive reporting to the district food controller regarding the quantity of imported rice as well as its storage and marketing activities.
The latest development came at a time when most of the traders were not showing any interest to open L/Cs for rice amid higher prices globally as well as persisting heavy duties both in neighbouring India and Bangladesh, according to insiders.
An FE report on April 03 showed rice import became uncertain amid higher duties imposed by Bangladesh and India, thereby adding to a record global price.
Both public and private sectors have not imported rice to date this year, thanks to robust production both during Boro and Aman seasons, according to the report.
Although the government slashed the import duty to 15.25 in March from 62.5 per cent earlier, importers are still to become interested in importing rice.
Nafisa Agro Ltd, a Mymensingh-based company, sought to bring rice this year, targeting shipment from India.
Nafisa Agro finance manager Jahirul Alam told the FE that his company has got an import order (IP) from the agriculture ministry to bring 1,000 tonnes of parboiled and 1,000 tonnes of white rice.
"We are in the process of opening an L/C," he said.
But India in August 2023 imposed a 20-per cent export duty on parboiled rice. Bangladesh import duties are still above 15 per cent, according to Mr Alam.
He said the Indian cheaper parboiled rice would cost $580 (Tk 67/kg), including the 20-per cent duty in Petrapole, while another 15-per cent duty would be needed again after entry into Benapole.
Another importer, who is yet to seek an IP, said: "We're waiting for a plunge in prices globally."
Local mill-gate prices of coarse and medium rice were still cheaper than that of import prices from Asian hubs like India, Thailand, Pakistan and Vietnam, he added.
The importer said the Indian general election would commence this month.
The Modi government has banned or initiated alternative measures to restrict shipment of almost all leading food products like rice, wheat, sugar, onion and others, he commented.
"Our Indian partners are saying that restrictions will be eased just after the election. We both are waiting for that moment," he said.

[email protected]