TDS Desk:

The Bangladesh Trade and Tariff Commission has recommended to the National Board of Revenue (NBR) that the existing 25% import duty on rice be completely removed to facilitate lower-cost imports due to the high prices in the global market.

According to Ministry of Commerce sources, the commission sent a letter to the NBR today (29 October) regarding the matter, after conducting an analysis of the international rice market.

The letter stated that the government had reduced the total import duty from 62.50% to 25% on 20 October to address the potential rice shortage.

However, even with this reduced duty, rice imported from Thailand and India will cost Tk92-95 per kg and Tk75-78 per kg, respectively in the local market.

To facilitate imports and encourage importers, it is necessary to remove the rice duty, the commission said.

The import duty currently applicable to rice imports can be completely withdrawn for a specific period to increase the supply of rice in the domestic market and stabilise prices, considering the recent disruption in rice production due to floods, the letter added.

Citing the Department of Agricultural Extension, the commission stated due to excessive rainfall and landslides from upstream between 16 August and 15 October, the production of 8.39 lakh tonnes of rice was affected. As a result, the price of the staple food in the domestic market has increased, with prices of fine rice increasing by 9.09%, medium-quality fine rice by 9.35%, and coarse rice by 7% compared to the same period last year.

According to Reuters data, the price of Thai rice in the international market has decreased by 3.71-4.15% over the past month. However, it is still being sold at $545-554 per tonne. On the other hand the price of Indian rice is slightly lower, selling at $450-470 per tonne (FOB price).

The Ministry of Commerce said due to the high price, importing rice with a 25% tax will exceed the local market price.