Rice market remains volatile  despite large-scale imports from India

Even after the arrival of 18,800 metric tonnes (MT) of rice from India via Benapole land port in the last four months, market prices remain high, causing hardship for consumers, particularly those from low-income groups. 

Despite government efforts to stabilise the situation, the price surge continues to strain household budgets.

A substantial quantity of rice was imported between 17 November and 13 March under the 2024-25 fiscal year through eight authorised importers, enjoying a duty-free facility. 

The most recent consignment of 350 MT of rice entered the country through the port on 13 March.

In an effort to stabilise the rice market and ensure food security, the government has permitted major rice importers to bring in rice from abroad. On 6 March, a notice signed by Mohammad Ariful Islam, deputy secretary to the Ministry of Food, extended the deadline for opening letters of credit (LCs) for the import of non-Basmati boiled rice and Atap rice until 15 April.

Multiple Deadline Extensions

According to Benapole customs sources, the government authorised 92 institutions across the country to import 273,000 MT of boiled rice and 119,000 MT of Atap rice. 

But many importers have been unable to bring in their allocated quotas due to various challenges.

The government has extended the import deadline multiple times due to the slow progress in import activities. Initially set for 15 January, the deadline has since been extended several times, with the latest extension allowing imports to continue until 15 April to ensure adequate supplies in the market.

Rising Prices Despite Increased Supply

Despite continuous rice imports, market prices have remained high, with a noticeable surge in recent weeks. 

Middle-income and low-income consumers are bearing the brunt of the price hike, despite the government's efforts to stabilise the market.

Rice trader Din Mohammad said that prices have increased by Tk 4-5 per kilogram since the start of Ramadan. 

For instance, the 28 varieties of rice, previously sold at Tk64 per kg, are now priced between Tk68-69 per kg. Miniket rice, previously Tk72 per kg, has risen to Tk76, while coarse rice has increased from Tk52 to Tk56 per kg. Basmati rice, which was Tk84 per kg, is now selling for Tk88-90.

"Indian rice is available for Tk58 per kg, but its demand in the market remains low," he added.

Din Mohammad also expressed doubts over the possibility of a price reduction during Ramadan, saying that despite continuous imports from India, market prices remain unaffected.

Efforts for Efficient Distribution

Shamim Hossain, director of Traffic at the port, assured that trucks carrying imported rice from India receive swift clearance to facilitate rapid distribution to local markets.

Mohammad Kamruzzaman, Commissioner of Benapole Customs House, highlighted the strategic importance of Benapole Land Port in expanding import-export trade.

"Due to its proximity to Kolkata, the port enables businesses to save both time and costs in trade operations. With an efficient transportation network, goods cleared at the port can quickly reach various district markets across the country," he said.

Despite these efforts, the struggle to stabilise the rice market continues, with consumers hoping for relief in the coming weeks.