Staff Correspondent

A total of 39,320 tonnes of rice were imported from India through two southwestern ports – Benapole and Bhomra – over the last 25 days after the government waived import duties.

The deadline for importing the 3,92,000 tonnes of rice permitted by the government – 2,73,000 tonnes of parboiled rice and 1,19,000 tonnes of Atap (non-parboiled) rice – under the waiver expired on 12 December.

Importers and traders have blamed the tight deadline for both importing and marketing the rice, as well as the price imbalance between Bangladesh and India, for the poor performance.

Kamal Hossain, the proprietor of Messrs Sonali Enterprise – one of the 92 companies granted permission for duty-free imports – said that importing the entire permitted volume of rice within the stipulated time was practically impossible. Similar views were shared by several other importers using both ports.

Seeking anonymity, several sources at the Benapole and Bhomra ports revealed that many Bangladeshi importers had verbal agreements in place with Indian suppliers for importing rice. However, unless the government extends the duty-free facility, these imports are unlikely to proceed, they added.

Import status

The revenue office at the Benapole Check Post reported that, out of 92 approved importers, only eight managed to import a total of 3,320 tonnes of rice through the port within the stipulated timeframe. Abu Taher, a revenue officer at the Benapole Check Post cargo section, said that the last shipment of 105 tonnes arrived at 10 pm on 12 December. He also mentioned that some additional rice under the duty-free scheme might arrive within the next few days.

On the other hand, 36,000 tonnes of rice had been imported through Bhomra port as of 12 December. The first consignment arrived at Bhomra on 13 November via India’s Ghojadanga land port. The total value of the imported rice is approximately Tk32 crore.

Rice imports from India through these two ports had been suspended since November 2022 when India imposed export restrictions on parboiled and non-basmati rice on 20 July 2023.

On 20 October this year, the National Board of Revenue (NBR) reduced rice import taxes from 62.5% to 25% by lowering import duty, regulatory duty, and removing the advance tax at the request of rice importers. After a two-year hiatus, rice imports resumed in November this year. Among the imported varieties were fine basmati, Miniket, coarse Swarna, Nurjahan, and Jamai Babu rice.

Earlier in March and April 2023, 80 companies were permitted to import 207,000 tonnes of rice, but challenges such as high Indian tariffs and a dollar shortage hindered imports.

Market conditions

Despite the influx of duty-free rice into the market, traders report no noticeable impact on rice prices. In districts like Kushtia, Jashore, and Satkhira, wholesale prices remain as they were before, after having increased several times.

On Monday, this correspondent observed that coarse rice was being sold at Tk52 per kg, Hira variety at Tk48 per kg, Unapanchash at Tk56 per kg, Atash at Tk58–60 per kg, Miniket at Tk64–68 per kg, Teshotti at Tk68–70 per kg, Basmati at Tk80–86 per kg, and Najirshail at Tk80 per kg.

In retail markets, prices are Tk2–3 higher per kilogram. Even with over half of the Aman paddy harvest completed, prices have remained unchanged.

Traders indicated that Indian coarse rice is being sold wholesale at Tk52–53 per kg from the ports. Wholesalers then sell it at Tk54 per kg, with retail prices reaching Tk56 per kg. Similarly, Indian “Ten” brand rice is sold wholesale at Tk58 per kg.

Revenue officer at Bhomra Land Customs Station, Shafiul Boshor, said that rice prices in Satkhira have remained stable due to the imports.

When contacted, Lutfor Rahman, joint secretary at the Ministry of Food, stated that the duty-free import period had concluded and that the government would decide on the next steps.