Prime Minister Sheikh Hasina has opposed a proposal for imposing additional tax on rice import from India.
Rather, she strongly argued: “The government wants to make sure that the country’s poor man get rice at a cheaper price even at a cost of revenue losses.”
She came up with her firm stance against the proposal raised by several cabinet members at the regular cabinet meeting held yesterday with Prime Minister in the chair.
Quoting the Prime Minister a source said: “The government would not bother its losses once the poor people get the Indian rice at a cheaper rate.”
At present, local importers purchase rice from India at Tk8 to Tk10 per kg, forcing the government to cut rice price under its OMS programme, according the cabinet meeting sources.
The government recently reduced rice price at Tk22 per kg from Tk26 per kg under OMS programme.
But, the Indian imported rice is selling at Tk29 per kg in the local market, according to wholesaler Nizam Uddin at Badamtoli in Dhaka.
Defending the proposal of imposing extra tax of Indian rice, several cabinet members also, however, contended that the government might face losses in its open market sale (OMS) programme in selling rice to the poor people. They said it also might affect the local rice market.
According to sources, the cabinet meeting also discussed about the country’s existing rice import policy and the local market situation.
Another source said, Agriculture Minister Begum Matia Chowdhury asked to know about the procedures of importing rice from India to make it clear on how the importers import rice in relatively cheaper rate from India.
However, Food Minister Qamrul Islam opined that India sell rice at cheaper rate to Bangladesh in order to clear their rice stocks, said a source quoting the minister.
Earlier, rice millers strongly opposed the government’s decision to import rice from India last year.
“Many rice millers have started importing rice from India shutting down their own rice mills,” said KM Layek Ali, secretary general of Bangladesh Auto, Major and Husking Mill Owners Association.
“They are importing the Indian rice, Swarna, almost every day because of its competitive price over other verities, giving traders a bulk amount of profit,’’ he said.
Urging the government to cancel the decision for importing rice from India immediately for the sake of protecting the country’s industry and ensuring fair price for the farmers, he said :“It virtually hurts the farmers as they fail to get their fair prices due to the fall in demand.”
Nizam Uddin, who is also general secretary of Badamtoli Chal Aratdar Malik Samity, said the government’s rice import decision from India is good for poor people but bad for farmers.
Bangladesh has produced around 34.449m tonnes of rice in the last fiscal year against the total demand of around 28m, up about 2.7% from around 33.833m tonnes produced in FY 2012-13, according to the Department of Agriculture Extension (DAE).
Boro, Aus and Aman contribute to around 7%, 38% and 55% respectively to the total rice production in Bangladesh. The country is now world’s sixth largest producer of rice, which accounts for 77% of agricultural land use.