Rice traders refuse to unload consignments due to high duty at Hili port

Although rice imports through Hili land port have begun, importers have been refraining from clearing their consignments from customs, fearing heavy financial losses due to high import duty.

Despite receiving the government's permission to import rice, importers at the Dinajpur-based land port say they are unwilling to proceed because customs duties and taxes remain high.

Many traders have opened LCs in anticipation of a duty reduction but have paused imports from India.

However, rice was imported through 15 Indian trucks from Tuesday (12 August) till yesterday noon, but the consignments remain uncleared at customs due to the high duty.

Talking to importers at the port they said that the current rate imposes about Tk31 per kg in customs taxes.

The price of rice in India ranges between $520 to 530 per tonne, which equates to Tk63–65 per kg in Bangladeshi currency.

Including duties and other costs, total import costs rise to Tk95–96 per kg, making imports economically unviable under the current scenario.

They also urged the government to reinstate the earlier 2% duty rate to facilitate imports.

Sources said, the government decided to allow private import of 5 lakh tonnes of parboiled and Atap rice to stabilise the domestic supply and consumer prices.

It invited applications between 23 July and 7 August from interested importers.

On 10 August, import permission was granted to 242 importers in the first phase.

When speaking, Lalit Keshra, owner of importing company M/s Sayram International, said "Importing rice with the current 62.5% duty is not feasible. We've opened LCs, but unless the government withdraws or reduces the duty to the previous 2%, importing is not possible. At the current rates, the duty alone will cost Tk35 per kg, while rice itself will cost Tk68–70."

"In total, the cost exceeds Tk100 per kg. Importers want the government to lower the duty urgently so we can import rice. Otherwise, we can't afford the losses. Besides, the market price of rice is still relatively stable," he added.

Abul Bashar, owner of M/s Mifa International, another importer at the port, said he received permission to import 1,000 tonnes of rice.

"But we won't proceed with LCs unless the government reduces the duty. No one else will either," he said.

He explained that with a 62.5% duty, customs charges exceed Tk31 per kg. With Indian prices at $520–550 per tonne, the landed cost comes to Tk63–65 per kg.

"So the total cost per kg stands at Tk96. Meanwhile, in local markets, good quality rice is being sold at Tk 70–80," he said.

Meanwhile, on yesterday and the day before that, 15 trucks of rice consignments arrived from India.

Mithun Saha, an importer from Naogaon, imported 125 tonnes and 944 kg of rice via three trucks.

"I imported this shipment expecting the government to cut duties. But since that hasn't happened yet, releasing it from customs would incur major losses," he said.

Importers are in talks with the authorities, hoping for a revision.

"Without a duty cut, imported rice won't be cheaper in the local market. It will defeat the purpose of the government's decision and may further increase prices," he warned.

Yusuf Ali, sub-assistant at the Plant Quarantine Centre at Hili Port, said that as of Wednesday noon, 32 importers had obtained import permits (IPs) from the Department of Agricultural Extension to bring in 45,000 tonnes of rice from India.

More permits are expected to be issued gradually. Rice imports had been suspended since 16 April.

Meanwhile, Md Nazmul Hossain, assistant revenue officer at Hili Land Customs Station, said, "As of 2:30pm on Wednesday, we have not received any order from the National Board of Revenue (NBR) regarding a reduction in rice import duty.

"There is also no updated information about duty changes on the customs server. Therefore, the existing 62.5% duty remains in place. Importers wishing to release their rice shipments must pay this duty," he explained.