Import duties cut down to stabilize market price of rice
The government has extended the timeframe for the opening of letters of credit (LCs) for rice imports by the allotted institutions or firms in the private sector till January 31.
As per the recommendations of the Ministry of Food, the Ministry of Commerce should provide necessary permissions for importing a total of 10,14,500 metric tons of rice by almost 320 private importers or institutions, a PID handout said on Saturday.
The allotted firms have been asked to inform the Food Ministry after opening LCs, within seven days of receiving allotment letters. Businessmen who are supposed to import 5,000 metric tons of rice have been advised to import 50% of the rice within 10 days of opening the LC and the entire shipment within 20 days.
Meanwhile, according to the office order of the Ministry of Food, businessmen who are supposed to import 10,000-15,000 metric tons of rice are asked to import 50% of the rice within 15 days of opening the LC and the remaining rice within 30 days.
In order to support the low income group people and to keep a stable market price, the government has reduced the duty on rice imports by the private sector to 25% from 62.50%.
On December 27, 2020 all legal importers were asked to apply to the Ministry of Food with necessary documents by January 10 this year to import rice.