Rice import jumps by 600pc in quantity, 1000pc in price
Thursday, 13 March 2008
FHM Humayan Kabir
Rice import has increased by 600 per cent in quantity and 1000 per cent in price in the first eight months of the fiscal, due to huge production shortfall and soaring global prices, the central bank said Wednesday.
Statistics released by Bangladesh Bank showed 1.795 million tonnes of rice were imported between July and the first week of the March, which was at least 613 per cent more than that of the same period last year.
The country spent 642 million dollars to import rice during the time, up from 55.57 million dollars in the same period last fiscal, the BB said.
Central bank officials said the massive increase in import was due to the devastating natural disasters in the first half of the fiscal, which caused a shortfall of around two million tonnes of rice in the country.
"The floods in July and August and the cyclone in November destroyed huge quantity of Aman crop. It prompted both the government and the private importers to increase rice import at a huge quantity," a BB Official said.
"We believe the import of 1.8 million tonnes of rice would keep the stock replenished for at least until the harvest of Boro crop. We think there is now adequate supply and there is no reason for any spike in prices," he said.
Commerce Secretary Feroz Ahmed said the import figures show that there is now enough stock of rice and other major food items in the market, although he is 'baffled' by the sudden hike of prices of some products.
"We are now investigating why there is such a sudden hike in prices in the market. We will do analysis and then take necessary actions," he said.
His remarks came as the prices of rice witnessed over 60 per cent growth since the beginning of the fiscal in July. Presently, coarse rice is being sold at Tk 36-38 a kilogram, up from Tk 22-25 in July.
The BB said the import of four other food items increased between 2.71 per cent to 32.71 per cent in quantity during the period.
Sugar import grew by 32.71 per cent, crude edible oil by 2.81 per cent and pulses by 3.54 per cent and wheat 2.73 per cent till the first week of March.
But price-wise only edible oil and wheat showed huge jump, with the former growing at 86.41 per cent and the latter by 76.97 per cent during the period. Import prices of sugar and pulses increased by only 8.74 per cent and 6.5 per cent.
The country spent 613 million dollars to import crude edible oil till the first week of March, 425.69 million dollars in wheat, 158 million dollars in sugar and 238 million dollars in pulses during the period.
"The import figures show that there is now enough sugar in the country and the import cost also did not show much rise. But we are surprised at nearly 50 per cent growth in sugar prices in the local market," said a commerce ministry official.
"The import of pulses, wheat and edible oil did not grow that much in quantity mostly due to the fact that people have cut down consumption. These items are not as essential as rice," he said.
Till the first week of March, the traders opened letters of credit for importing 2,804,000 tonnes of rice, 1,456,000 tonnes of wheat, 659,000 tonnes of sugar, 711,000 tonnes of crude edible oil and 413,000 tonnes of pulses, according to the BB.
Rice import has increased by 600 per cent in quantity and 1000 per cent in price in the first eight months of the fiscal, due to huge production shortfall and soaring global prices, the central bank said Wednesday.
Statistics released by Bangladesh Bank showed 1.795 million tonnes of rice were imported between July and the first week of the March, which was at least 613 per cent more than that of the same period last year.
The country spent 642 million dollars to import rice during the time, up from 55.57 million dollars in the same period last fiscal, the BB said.
Central bank officials said the massive increase in import was due to the devastating natural disasters in the first half of the fiscal, which caused a shortfall of around two million tonnes of rice in the country.
"The floods in July and August and the cyclone in November destroyed huge quantity of Aman crop. It prompted both the government and the private importers to increase rice import at a huge quantity," a BB Official said.
"We believe the import of 1.8 million tonnes of rice would keep the stock replenished for at least until the harvest of Boro crop. We think there is now adequate supply and there is no reason for any spike in prices," he said.
Commerce Secretary Feroz Ahmed said the import figures show that there is now enough stock of rice and other major food items in the market, although he is 'baffled' by the sudden hike of prices of some products.
"We are now investigating why there is such a sudden hike in prices in the market. We will do analysis and then take necessary actions," he said.
His remarks came as the prices of rice witnessed over 60 per cent growth since the beginning of the fiscal in July. Presently, coarse rice is being sold at Tk 36-38 a kilogram, up from Tk 22-25 in July.
The BB said the import of four other food items increased between 2.71 per cent to 32.71 per cent in quantity during the period.
Sugar import grew by 32.71 per cent, crude edible oil by 2.81 per cent and pulses by 3.54 per cent and wheat 2.73 per cent till the first week of March.
But price-wise only edible oil and wheat showed huge jump, with the former growing at 86.41 per cent and the latter by 76.97 per cent during the period. Import prices of sugar and pulses increased by only 8.74 per cent and 6.5 per cent.
The country spent 613 million dollars to import crude edible oil till the first week of March, 425.69 million dollars in wheat, 158 million dollars in sugar and 238 million dollars in pulses during the period.
"The import figures show that there is now enough sugar in the country and the import cost also did not show much rise. But we are surprised at nearly 50 per cent growth in sugar prices in the local market," said a commerce ministry official.
"The import of pulses, wheat and edible oil did not grow that much in quantity mostly due to the fact that people have cut down consumption. These items are not as essential as rice," he said.
Till the first week of March, the traders opened letters of credit for importing 2,804,000 tonnes of rice, 1,456,000 tonnes of wheat, 659,000 tonnes of sugar, 711,000 tonnes of crude edible oil and 413,000 tonnes of pulses, according to the BB.