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Duty-free Indian rice import a boon for importers but loss for farmers

Update : 10 Dec 2014, 07:52 PM

Rice imported from India has taken over the local market, especially since there is no duty on the import. Local farmers and rice mill owners have alleged that this duty-free import has affected their business and livelihood. They are not getting the due price even in the pick season. A huge amount of rice is left unsold at the rice mills.

Assistant Commissioner, Sharif Mohammad Faisal, of the Benapole land port authority said a total of 86 thousand and 452 metric tonnes of rice had been imported from India through the port till November 27 of the current fiscal. The average price of imported rice per kilogramme is Tk23 to Tk28, whereas the rice produced by the local farmers cost Tk27 to Tk31 per kg.

Rice importer Nipu Hossain said due to the low rice production during the BNP-led grand alliance regime, there was a surge in the import from India. “After the caretaker government took over, the duty on the import was withdrawn and it has remained so till now.  At present, Bangladesh has a surplus in rice production.  But still everyday about 500 metric tonnes of rice is imported through the Benapole port alone,” he added.

He however mentioned that since the Aman season started, the import has seen a decrease.

“There is a good demand for Indian rice in the market as the rice has a better quality, costs less and lasts longer after cooking,” said Mozammel Hossain, wholesale trader at Benapole.

When asked what  impact the import has on local production, he said it was needed to keep the rice market stable.

However, farmers and rice mill owners alleged that they were deprived of fair price because of the import.

Abdul Kader of Baulia village in Benapole said he produced rice in a five bigha land and gave them all to a rice mill. But he was yet to be paid.

Another farmer Keramat Ali said he also did not get money for his rice since the mill owners could not sell the rice.

Mill owners Mosharref Hossain and Jalal Uddin claimed that they were severely affected because of the import. “We cannot sell the rice because the price of Indian rice is less. A large amount of rice is left unsold in the mills. If the import is not stopped, or at least discouraged, we will not be able to continue our business in future,” they said.

They urged the government to intervene in this regard and impose duty on importing Indian rice.

Some rice importers like Mojaffar Hossain acknowledged the harm of imported rice but said they could not possibly stop importing as it was a lucrative business. Nevertheless, he also urged the government to take action so that interest of both the parties, the importers and the farmers, were protected. 

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