Square seeks commerce ministry’s interference for reopening its rice mills

Square Food and Beverage, a subsidiary of large conglomerate Square Group, has recently written to the Ministry of Commerce, seeking its interference to reopen its 6 rice mills and production areas, which were sealed off in the 31 May drive against paddy and rice hoarding.

"Square produces and markets only aromatic rice under the brand name Chashi. It has no association with market manipulation [by stocking] as it does not produce regular varieties of rice," the letter, obtained by The Business Standard, reads.

The aromatic rice manufacturer said it now fails to export the item due to the forced shut down of its factories, which can lead to a loss of its export market. "We have been approved to ship 3,000 tonnes of rice this year."

In the late last month drive, conducted by Dinajpur Sadar upazila nirbahi officer and upazila food controller, the company was sued for hoarding an additional 5,124 tonnes of rice. Meanwhile, the key accused in the case, Square Managing Director Anjan Chowdhury, was granted anticipatory bail for six weeks.

Square claimed that its aromatic rice is not an item of essential commodities, rather it is used to serve guests on special occasions such as social and cultural programmes. "But, the executive magistrate did not take the matter into account. Instead, it considered the rice as Atap rice and sealed off our factories."

Rice mills are allowed to have a stock of three-fold of their biweekly production – considering 8 working hours per day – for maximum 30 days, according to the Food directorate.

The letter, signed by Anjan Chowdhury, said they could stock 2,100 tonnes as per rules. "If we keep at least three months' demand for the rice in mind, we should have a stock of 6,300 tonnes. Besides, we are permitted to export 3,000 tonnes," it reads.

"In addition, to continue the supply of the aromatic rice until the next harvesting season of Chinigura paddy [from which the rice is processed] in December, we need a stock of additional 12,876 tonnes of rice."

Hence, Square sought the interference of the commerce ministry to keep the country's aromatic rice market stable and continue exporting.

Food Minister Sadhan Chandra Majumder, immediately after the drive, told the media that they conducted the drive in Dinajpur where Square also had rice mills. "As per rules, any mill can have a stock of three folds of its biweekly production. Of which, a portion would be supplied to the market, another in production and the other portion can be in stock. Square mills have been sealed off as they had an additional stock of over 5,000 tonnes of rice out of godowns," he added.

When asked, Dinajpur District Food Controller Md Kamal Hossain echoed the same.

Meanwhile, following the Square request, the Metropolitan Chambers of Commerce and Industry wrote another letter to the ministry urging it to take necessary steps for allowing the mills to resume operation.