13,968 tonnes of rice imported from India through Benapole in 3 months

Despite the duty-free import of 13,968 tonnes of rice from India over the past three months, prices have not decreased in the markets of Benapole and Jashore.

On the contrary, rice prices have risen by Tk1-2 per kg over the past week.

In response, the government has extended the deadline for rice imports from India. Allocated importers will now be able to bring in rice until 15 March, according to a press release issued by the Ministry of Food on 5 February.

It stated that the deadline for opening letters of credit (LCs) for non-Basmati parboiled and Atap rice imports has been extended until 15 March.

Importers attribute the high rice prices to elevated costs in India, making it difficult to sell imported rice at lower prices in the domestic market. Consequently, they do not foresee any immediate price reductions.

Consumers, however, argue that there is no shortage of paddy or rice in the country, especially since Aman paddy has recently been harvested. Despite this, they are being forced to buy rice at higher prices, exacerbating financial burdens.

Many believe that a syndicate is still manipulating the market, and the lack of effective price monitoring is allowing prices to remain high.

Consumer Tuhin Hossain expressed frustration, questioning why prices remain high despite ample domestic stock and continuous imports.

"Every year at this time, when new paddy is harvested, the price of rice in the market drops significantly. But this time the market picture is different. It is necessary to investigate whether there is any manipulation by the syndicate," he said.

Traders also acknowledge the strain on low-income groups, as rising prices of essential commodities are making daily survival increasingly difficult. Nearly all household staples have seen price hikes, with rice being no exception.

According to importers, a total of 13,968 tonnes of rice were imported through Benapole between 17 November last year and 13 February this year, following the government's decision to lift import duties.

Initially, the government had approved the import of 392,000 tonnes of rice between 17 November and 22 December.

However, as the expected volume was not imported within this timeframe, the deadline was extended to 15 February. With prices still remaining high, the government has now extended the import period further to 15 March, hoping for a price drop.

Rice mill owners and paddy traders argue that prices remain high due to the elevated cost of paddy this season. Rashid Chowdhury, owner of Choudhury Rice Mill in Navaron, said that coarse rice is selling at Tk51 per kg, while Swarna rice is priced at Tk53 per kg in wholesale markets.

He anticipates a price reduction once newly harvested rice enters the market, although lower production due to excessive rainfall might sustain the need for continued imports.

A field visit to several rice mills in Benapole and Sharsha upazila revealed that mill owners have struggled to procure sufficient paddy. Many farmers are stockpiling their harvest in anticipation of higher prices.

As a result, mill owners are sourcing paddy from other districts, which increases processing costs to over Tk50 per kg for coarse rice and around Tk63 per kg for finer varieties, according to the owners.

Wholesale rice trader Iqbal Hossain provided current market rates: coarse rice is selling at Tk52 per kg, Hira rice at Tk48, Unapanchash at Tk56, Atash at Tk58-60, Jirashail at Tk76, Miniket at Tk68-70, Indian Miniket at Tk72-74, Basmati at Tk90-92, Pajam at Tk56-57, Swarna at Tk52-53, and Nazirshail at Tk84-85 per kg in retail markets.

Abu Taher, revenue officer (cargo branch) at Benapole Checkpost, reported that eight importers brought in 13,968 tonnes of rice between 17 November and 13 February.

"Nationwide, 92 companies were permitted to import 273,000 tonnes of parboiled rice and 119,000 tonnes of Atap rice."

He noted that many importers failed to meet deadlines, leading to multiple extensions and the government has mandated that imported rice must be marketed within 25 days, later extending this to 15 February.

Despite this, imports have been slow, prompting the latest one-month extension to ensure adequate supply and potential price reductions, he said.

Benapole Port Director Shamim Hossain said, "In the last three months, 13,968 tonnes of rice were imported through Benapole with duty-free facilities. We are making arrangements to quickly release these consignments of imported rice as soon as they arrive at the port."