Rice millers put off strike on govt pledges
Monday, 12 July 2010
FE Report
Rice millers Sunday put on hold their planned strike over enhanced price incentives in a development that could sustain the supply of the staple to the government warehouses.
Bangladesh Auto, Major & Husking Owners Association, a platform of rice millers, Saturday announced that it would stop rice supply to the government from Sunday to realise their demand.
KM Layek Ali, the association's convenor, said they "temporarily" postponed the programme upon top level assurance of the government.
The association chief, however, said if negotiations with the government side fail, he will take the next course of action in consultation with his leaders
"We believe the government will meet our logical demands," he said while the announcing the decision.
The government had announced that millers who are yet to supply rice under a government-millers agreement will be eligible for the incentive.
However, the association demanded that the millers who are continuing supply should be included in the privilege.
Food minister Dr. Abdur Razzak Sunday warned his ministry would scrap license of rice millers if they don't supply rice to the government.
"Under the agreement, the millers must supply the rice…Otherwise, legal actions will be taken against them," he said.
His warning came as hundreds of millers in the northern district planned to go on strike, threatening to stop rice supply to the government store houses.
He said the government used to buy rice at Tk 25 per kilogram from the millers and now are giving additional Tk 3 as incentive, raising the price to Tk 28.
But the millers are demanding Tk 28 per kg of rice.
"This demand is illogical," the food minister said.
Dr. Razzak insisted that the strike would not stoke any crisis as the government is importing adequate rice to keep the market stable.
He said three lakh tonnes of rice and one lakh tonnes of wheat have already been unloaded at ports while another four lakh tonnes of rice are being imported.
The food minister said that price of rice has increased by Tk one or two because of the price incentive, but hoped the price would come down.
Rice millers Sunday put on hold their planned strike over enhanced price incentives in a development that could sustain the supply of the staple to the government warehouses.
Bangladesh Auto, Major & Husking Owners Association, a platform of rice millers, Saturday announced that it would stop rice supply to the government from Sunday to realise their demand.
KM Layek Ali, the association's convenor, said they "temporarily" postponed the programme upon top level assurance of the government.
The association chief, however, said if negotiations with the government side fail, he will take the next course of action in consultation with his leaders
"We believe the government will meet our logical demands," he said while the announcing the decision.
The government had announced that millers who are yet to supply rice under a government-millers agreement will be eligible for the incentive.
However, the association demanded that the millers who are continuing supply should be included in the privilege.
Food minister Dr. Abdur Razzak Sunday warned his ministry would scrap license of rice millers if they don't supply rice to the government.
"Under the agreement, the millers must supply the rice…Otherwise, legal actions will be taken against them," he said.
His warning came as hundreds of millers in the northern district planned to go on strike, threatening to stop rice supply to the government store houses.
He said the government used to buy rice at Tk 25 per kilogram from the millers and now are giving additional Tk 3 as incentive, raising the price to Tk 28.
But the millers are demanding Tk 28 per kg of rice.
"This demand is illogical," the food minister said.
Dr. Razzak insisted that the strike would not stoke any crisis as the government is importing adequate rice to keep the market stable.
He said three lakh tonnes of rice and one lakh tonnes of wheat have already been unloaded at ports while another four lakh tonnes of rice are being imported.
The food minister said that price of rice has increased by Tk one or two because of the price incentive, but hoped the price would come down.