The government is set to initially permit the private sector to import a maximum of 1 million tonnes of rice to stabilize its price in the domestic market.
Sources say the move comes after the slashing of rice-import duty to 25% from a steep 62.5% on June 22 by the government amid surging prices of the grain as the coarse variety sold at Tk54, medium variety Tk64 and the finer variety as high as Tk96 a kilogram.
According to the Food Ministry, they authorized importers to bring 1.7 million tonnes of rice between July and October in the outgoing financial year at reduced duty rates of 25% and 15%.
However, from November 1, 2021 the duty rate was refixed at 62.5%.
Private importers were able to bring only 300,00 tonnes of rice during the period, while prices witnessed abnormal rises.
However, rice prices continued to surge even during the peak Boro harvesting period (April-June) this year, the key rice-growing season.
A meeting of the food planning and monitoring committee (FPMC), headed by the food minister, on June 6 decided on lowering rice-import duty and sought the prime minister's permission in this regard.
The prime minister's office in the second week of June gave a positive response to the market-intervention matter and the Economic Relations Division issued a notification on June 22 slashing import duty to 25% from 62.5%.
However, the government declaration to ease rice import has yet to put any impact on retailing.
Rice prices witnessed 10-22% rise in the last three months while 5-10% just in a week, according to the Trading Corporation of Bangladesh and city grocers.
Meanwhile, prices of coarse rice, supplied by traditional millers, hit record highs at Tk52-54, medium Tk60-64, finer Tk70-80 a kg in the city retail markets, a Tk2-4 further hike per kg in the last two weeks.
Consumer goods companies like Pran RFL, Brac's Aarong, TK Group etc were selling finer rice at Tk77-96 a kg---Tk6-11 hike a kg in the last two weeks, according to TCB, online shopping platforms like Chaldal.com and city groceries.
Pran RFL's Najirshail rice was selling at Tk96 and Aarong's Miniket at Tk91 a kg--maximum retail price on the domestic market now, according to market sources.
