Govt plans to allow rice exports

The government plans to allow exports of 40 lakh to 50 lakh tonnes of rice from a surplus stock to help growers get better prices.

“I asked exporters to look for markets in Africa and other potential markets for rice exports,” Commerce Minister Tofail Ahmed told reporters at his secretariat office in Dhaka yesterday.

Annual demand for rice in Bangladesh is 3.29 crore tonnes at present while production was recorded at 3.48 crore tonnes in fiscal 2014-15, according to Ahmed.

While the government plans to approve rice exports, private traders imported 14.9 lakh tonnes of rice last fiscal year and 2.46 lakh tonnes as of May 15 this fiscal year.

The government has targeted the production of 3.5 crore tonnes of rice this fiscal year, according to data from the Department of Agricultural Extension.

“As a result, Bangladesh will have a good stock of rice with old and new crops,” he said. “Warehouses are overloaded.”

Some companies have shown interest in exporting the coarse and finer varieties of rice, as they are already exporting aromatic rice, Ahmed added.  However, the minister did not set the purchasing price from the local markets for the exporters or the export price yet. At present, the ministry has only allowed the export of aromatic rice. The minister said the government will start procurement of six lakh tonnes of rice and seven lakh tonnes of paddy from the domestic market to build its stock and ensure better prices of boro crops for the farmers. Ahmed is hopeful that the prices of basic commodities will not increase ahead of the upcoming month of Ramadan as there is a good supply in the markets.

The stock of edible oil, sugar, lentils, chickpeas, onion, and garlic is higher than demand, the minister added.

State-owned Trading Corporation of Bangladesh will sell some basic commodities such as sugar, lentils, edible oil and chickpeas, in 174 trucks at lower prices for consumers during Ramadan.

The prices of TCB goods would be lower so that the other sellers also sell their goods at lower prices during that month, he said.

On the issue of VAT, the minister said the government will not introduce a system that can affect the business community.

At the meeting, Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, urged businessmen not to make excessive profits from sales of basic commodities during Ramadan. Md Helal Uddin, a director of the FBCCI, said prices of local garlic were not supposed to be abnormally high. Prices rose as unscrupulous businessmen booked unusual profits, he added.

Hedayetullah Al Mamoon, senior secretary to the commerce ministry, said the government will monitor market prices, and supply and demand of the goods, so that nobody can make windfall profits.